It might be difficult to implement a hybrid cloud migration across the cloud and colocation datacenter, and it can be difficult to know how to design the move to execute at scale. It is advantageous to have a migration partner with established experience and a well-thought-out migration technique. Here, Deloitte shares key lessons from a recent two-year engagement with a premier asset management client that helped streamline enterprise portfolio migration to the cloud or datacenter in financial services, as well as in other industries.
Cloud Computing in Financial Services: Getting Started
Migrating to the cloud may seem like a technically daunting process, but the benefits are plentiful. Cloud computing equips finance companies with the tools they need to stay compliant, store data securely, automate and speed up processes.
Migrating to the cloud is not an overnight process, but it can be iterative. Cloud computing in financial services gives companies an edge over competitors with fast and efficient processes that are fully compliant and secure.
Here's how cloud migration can benefit financial services and how to start the process.
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Avoid substandard software vendors
Cloud skepticism is rampant among financial service providers. Software vendors offering inadequate solutions, projects running over budget, taking longer than expected, and creating data leaks have not helped the reputation of the public cloud.
Instead of prioritizing low cost, financial services companies should work with quality independent software vendors and experienced partners who can help you navigate the transition calmly without putting your company at risk.
Start small and improve step by step
Many financial services companies are reluctant to transform because the associated risk is too high. We recommend starting small.
Think about common pain points for your customers; Identify the most tedious and time-consuming tasks and start automating them. Build trust with your business customers by focusing on the problems you can solve well. For example, insurance companies typically have many paper forms that must be manually imported into the system of record. This task can be automated using NLP and the company can save time without disrupting their existing systems or other processes.
Once ready to build cloud-native features to replace existing processes, make sure business users A/B test them together. We find that new users of cloud-native systems complete their tasks faster and with fewer errors. These quick wins help build momentum and facilitate user adoption when the next new feature is released.
Benefits of Cloud Migration
Business agility and scalability: According to Gartner, CIOs rank operational agility as the top-line driver for cloud adoption. In addition to facilitating collaboration from anywhere on application updates or issues, cloud migrations automatically improve scalability to meet growing demand. This reduces the need to tether an employee to a desk, as data and services are instantly available at the virtual click of a button.
Cloud native platforms, typically implemented in a pay-per-use subscription model, provide seamless access to and from other internal and external services and support real-time processing by leveraging a microservice-based architecture with application programming interfaces (APIs).
IT Security: Security used to be a major challenge, which has become ironic for some time with the advancement of cloud security. Strict security standards and data protection policies are implemented to fight against malware, viruses, data theft and data backups.
Reduced Maintenance/Hosting Cost: As on-premises infrastructure maintenance is less, it ultimately reduces maintenance cost down the road. Financial services benefit from the cloud by reducing the costs associated with collecting and storing software, multiple servers, supporting equipment and other hardware. As server capacity scales up and down to match the cloud needs of financial services companies, using only the necessary resources can reduce the number of data centres to one or zero.
Disaster recovery: Backup and recovery solutions implemented through the cloud help financial services organisations continue their services without loss of data even in critical disaster situations.
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Enterprise Harmonisation: The cloud provides a unified platform that enables organisations to integrate multiple business units and share data between teams. It helps the organisation for better decision making and optimization of resources.
Rich stakeholder experience: With enhanced analytics capabilities to tailor offers, optimise products, and boost customer happiness, cloud migration makes it simpler for financial services organisations to build top-notch customer experiences and streamline operations.
Looking to the Future: Cloud Services in the Financial Services Industry
To get the most out of cloud services, companies should slowly move their offering and their data completely to the cloud.
The first step is to assess where you are now. Assess the protocols you currently use, the servers you use, why they are needed, and what would happen if a broken pipe destroyed them. How does it affect your business? This perspective will help you identify your biggest challenges and areas where you can improve your processes.
The next step is to start slowly moving small processes to the cloud. For example, you can start by using the cloud to back up your most critical data, using some lifecycle management tools from the cloud, or taking advantage of cloud encryption services. Using cloud technology gives companies greater flexibility and easier recovery from IT problems.
Migrating to the cloud means benefiting from existing features and functionality, so you don't have to reinvent the wheel every time. Start by taking advantage of the most important services the cloud has to offer.
For most financial services companies, moving to the cloud is an incremental process. Cloud Migration Consulting Service Provider in Newyork, You can trust that the cloud enables you to respond to regulatory changes and dynamically compete for the next generation of business.
