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The bigger challenge for CTOs and CIOs is often getting the business approvals…
Cloud financial institutions-A recent report from analyst research firm Aite estimates that the majority of global tier-one financial institutions have less than ten per cent of their total technology stack hosted in a public cloud environment. A startling statistic considering how large institutions such as Bank of America, which has been running cloud since 2013, has saved $2.1 billion in infrastructure costs. The financial sector has been slow to move to a cloud-based environment. Understandable concerns around data security are often cited as a key reason, but those financial institutions that do take the step towards the cloud can expect to realise a number of huge business benefits.
Cloud migration offers demonstrable business benefits for banks and financial institutions. A Chief Technology Officer at a tier-one global bank, explains this better when he says: “The transparency that the cloud offers around costs – getting that understood with folks who are responsible for finance and forecasting is an important piece.” The CTO added that cloud-enabled IT departments are able to deliver solutions in a faster timeframe. Furthermore, he states that the IT department can also work on DevSecOps models, giving them a lot more automation around their software development, data quality, software development and test quality.
Overcoming the challenges
The technology that allows systems to run in a cloud environment has been around for a long time. The bigger challenge for CTOs and CIOs is often getting the business approvals to be able to do what they want to do with cloud technology. Organisations should not underestimate the length of time it can take to implement a cloud infrastructure. Each system that’s being moved into the cloud needs to be judged on its own merits; there might be legacy systems or the organisation might already have the existing infrastructure it needs and it makes sense to actually continue to use it for a period of time.