Cloud technology is a strategic reality in the financial services market. Organizations are eager to achieve the benefits of the public cloud: reducing costs, managing complexity, meeting compliance standards and minimizing downtime.
Public cloud spending is expected to grow from $229 billion in 2019 to nearly $500 billion in 2023, signaling it is a vital piece of most organizations' IT ecosystems. If an organization is not somewhere in the cloud today, they likely will be eventually.
Three drivers influence an organization's decision and timing for a move to the cloud.
1. Improved Data Modernization and Analytics
Many organizations' most important asset is client data, which serves as the foundation for tools and processes. The use of analytics, reporting and business intelligence can help financial institutions better understand consumer and industry needs. Therefore, it's important to focus on how data is managed and protected, and to ensure it is always available. Scaling protection for the cloud's infrastructure and the workloads running on it is also vital, as is ensuring compliance with local, regional and federal regulations.
Hosting data in the cloud provides a versatile infrastructure that makes it easier to manage larger amounts of data. The cloud also offers enhanced flexibility and capacity for robust analytics. Using cloud analytics, financial institutions are often able to more efficiently process and report data findings, enhance internal and customer collaboration, and provide faster access to business intelligence for improved decision making.
Organizations are eager to achieve the benefits of the public cloud: reducing costs, managing complexity, meeting compliance standards and minimizing downtime.
2. Increased Security
Gartner predicts that through 2020, public cloud infrastructure as a service (IaaS) workloads will experience at least 60 percent fewer security incidents than those in traditional data centers.
Hosting data in the cloud can be a more secure option for several reasons. A cloud-hosting model typically allows for more backup and redundancy than an on-premise option. And, in most cases, the equipment and technology used for public cloud hosting are among the best available.
On-premise data centers are often built over several years, which can lead to a mix of solutions that may lack efficient patching and put data at risk.
It can be a struggle for organizations to find and retain a team of IT professionals to effectively manage security. Support from security professionals within your cloud provider's organization can be a determining factor for making the move to the cloud.
3. The Rise of Multicloud Management
Multicloud management, which is the use of multiple cloud and storage services from a single, central environment, is on the rise. In that model, each cloud provider delivers diverse strengths that give organizations flexibility to map their infrastructure and applications to individual business needs.
Institutions can often achieve greater flexibility with a multicloud architecture because they can adjust business-critical workloads and operations to their needs. A multicloud architecture can also reduce risk. For example, in a multicloud architecture, data isn't stored in just one place, so a business can continue to operate with other platforms if one web service host fails.
A Strategy for Success
The cloud offers tremendous promise in terms of capabilities, scale and cost efficiencies. Many organizations now realize that the cloud is not a technology strategy. Instead, it's a strategy for success.
Interested in learning more about cloud migration and strategy? Listen to the webinar Choosing the Right Cloud Strategy for Your Financial Institution: A Conversation with Microsoft Financial Industry Practice Leader and Fiserv Cloud Technology Expert.