There is a widespread buzz amongst banks to become cloud-native for maximizing the benefit of cloud applications ultimately.
FREMONT, CA: The time is right for the banking and financial services industry to harness the power of cloud technology. The cloud computing platforms are providing them with the opportunities of scalability, lower capital costs, ease of operations, and resilience. Given that cloud, innovation is fast becoming a fundamental driver in global digital disruption and is increasingly gaining more prominence. But it never means that banks need to rush to the adoption. To that end, below are specific considerations for financial firms to take into account when it comes to deciding their move to the cloud.
• Considering Business Goals
Banks have an on-premise data center where most of its workloads are performed. And most of them also use cloud-based solutions too. Moving workload to the cloud can mean access to higher computing power. This flexibility to rapidly and affordably scale data storage as per requirements should be considered. Each bank should determine what it intends to gain from a cloud migration over a specified period. Depending on the context, maintaining or acquiring the right kind of data center technology provides a considerable advantage.
• Assessing Cloud Readiness
Banks and financial institutions are adopting a cloud-first mentality, hoping to build new applications in the cloud while taking a slower approach with existing workloads. Most banks are reluctant to move their core banking system off-premise but are more open to the cloud with other workloads. The objective for banks should be to analyze each workload individually and determine what is fit for a cloud transition and should stay on-premise.
• Understanding Security Implications
The cloud is secure than most bank's on-premise technology. Data is placed on the cloud with proper security configurations. Major cloud vendors are certified compliant with data governance standards. There are cloud access security brokers there to not only help secure cloud applications but also monitor the use and ensure enterprise-wide policies.
The shift to the cloud in banking had been slow to start, but now, banks are willing to embrace the opportunity to accelerate their cloud transformation. Migrating to the cloud could be complicated, but the above considerations, at stake, make it more transparent and straightforward.