Hybrid and Multicloud for Financial Services

Financial regulations are continually developing. To stay up with shifting legislation and business needs amid the current epidemic, we have seen our clients speed their use of new technologies, particularly hybrid and multi-cloud services. Along with increased cloud adoption, we've seen increased regulatory concerns about concentration risk, which has resulted in new recommendations for clients to address vendor lock-in risks, improve comprehensive operational resilience, and require effective exit plans.

To make matters even more complicated, many financial services businesses manage service portfolios that comprise legacy programs that have been in operation for many years. These apps frequently cannot uphold the implementation of current capabilities that can serve mobile app support, business intelligence, and other new service capabilities. They suffer from flaws that impair their resiliency, such as outdated and manual processes for governance, updates, and security. Because they lack contemporary interoperability and portability, many outdated programs have substantial vendor lock-in. Leveraging legacy technology to protect against financial corruption is an unsuitable strategy with declining returns. Large banks spend over a billion dollars per year managing legacy infrastructure and seeing an increase in false positive figures as financial crime develops in sophistication.

Financial services firms have moved to the public cloud, hybrid cloud, and multi-cloud strategies to meet the needs of modernization, competition, and compliance. A hybrid paradigm allows existing on-premises applications to be extended by connecting to the public cloud. This infrastructure platform enables enterprises to reap the benefits of the public cloud, such as scale, speed, and elastic computation, without redesigning whole applications. This technique allows enterprises to determine whether elements of an application should be hosted in an existing data center vs. the public cloud, giving them a consistent and flexible way to build a modernization plan.

Deciding on Multi-Cloud strategy or hybrid strategy

Many firms begin their journey with a wholly on-premises foundation. We've noticed that when they use public cloud services, issues arise about the best deployment strategy. Companies are stuck between deciding on hybrid strategy, full cloud strategy or multi-cloud strategy.

If you answered yes to one or more of the following questions, you are likely in a good position to use hybrid or multi-cloud strategies:

• Is it possible for your organization's digital strategy to accept new and developing technologies and open them to on-premises or legacy apps?
• Is your company's digital strategy open to new ideas but not yet ready to commit to the public cloud?
• Do you have difficulty meeting capacity demands in your IT infrastructure, meeting unforeseen increases in demand, or maintaining performance levels?
• Is your IT staff struggling to handle several technologies from different vendors and maintain supervision across many environments?
• Do regulators or risk departments put pressure on your firm to keep particular procedures on-premises or inside specified geographic zones (data residency)?
• Is your company thinking about growing into new geographies or markets?