Company Blog | Dec 05, 2023
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The influence of cloud computing on the world of finance is nothing short of transformative. Over the past two decades, financial service businesses have harnessed the cloud’s potential to drive innovation, reshape traditional practices, and explore new horizons.
Financial service companies stand to gain substantial advantages from embracing cloud-based computing services. In an industry where data security and regulatory compliance are paramount, the cloud offers robust solutions for safeguarding sensitive financial information while ensuring scalability and flexibility.
Let’s discuss six compelling reasons why financial services companies should embrace cloud computing.
Innovation is the key differentiator between success and obscurity in today’s digitally connected and fiercely competitive landscape. However, legacy technologies hinder agility and rapid scaling. Cloud computing offers unparalleled agility, scalability, and speed to market, enabling financial firms to experiment, enhance user experiences, adapt swiftly, and reimagine their operations.
Scalability is crucial in financial services, and cloud systems excel in this area. Cloud systems and applications increase scalability by quickly expanding data storage, computing, memory, and networking resources to handle various tasks.
The principle of virtualization is behind the scalability of cloud-based solutions. Virtual machines can quickly scale resources like memory, CPU, and storage vertically and horizontally, ensuring financial firms can handle fluctuating workloads efficiently.
Transitioning to the cloud transforms capital expenditures (CapEx) into operational expenditures (OpEx). In other words, the CapEx of purchasing IT resources and hiring the staff to manage them is a long-term investment. When you shift to OpEx with a subscription-type model, you pay for hardware or software capacity as you use it – on a recurring basis based on consumption.
This shift simplifies budgeting and offers cost savings. Cloud providers often provide discounts for long-term commitments, further benefiting financial companies.
Managing extensive networks can be nightmarish, but cloud solutions simplify matters. Financial services networks can be exceptionally interconnected and complex, but cloud computing can change that.
Financial organizations can manage complex virtual networks effortlessly with a single physical infrastructure pipeline connecting to the cloud and software-defined networking (SDN). The cloud provider then handles all the maintenance for the physical networking, including patching, updating, and upkeep of network components.
In the world of financial services, data security is paramount. The sensitive financial information and transactions these organizations process demand the highest levels of protection.
Cloud computing introduces a concept known as “Shared Security Arrangements” or “Shared Responsibility Models” (SRMs), which redefine how security responsibilities are distributed between the cloud service provider and the financial firm.
In a shared security arrangement, the cloud service provider and the financial firm establish clear delineations of responsibility when securing data and infrastructure within the cloud environment. The aim is to ensure that security measures are comprehensive and that security responsibilities have no gaps or overlaps.
Provider responsibilities often include physical security (protecting data centers), network security (securing the cloud’s network infrastructure), and host infrastructure security (ensuring the safety of virtual machines and hardware).
Financial firms using cloud services are responsible for securing elements within their control. This includes securing their applications, data, configurations, and user access within the cloud environment.
SRMs will also differ based on your use of public, private, or hybrid clouds.
Sustainability is a growing concern, and technology’s energy consumption is a significant contributor. For example, the Bitcoin network uses 1,449 kWh of power – about what the average U.S. household uses in almost two months – to complete a single transaction.
Surprisingly, the cloud can be an environmental hero. Modern data centers, often associated with the cloud, are highly efficient and environmentally conscious. Cloud migration brings innovation and financial benefits and reduces the environmental footprint, aligning with sustainability initiatives and enhancing brand trust.
Financial services companies that fail to embrace cloud computing risk falling behind in today’s rapidly evolving landscape. Cloud technology offers the agility, scalability, cost-efficiency, and sustainability crucial for financial sector success.
For many years, Complete Network has assisted small and medium-sized enterprises in creating cloud-based solutions dating back to the earliest days of cloud computing. Throughout this time, we have consistently received accolades and earned 5-star reviews for our transparency, the quality of our services, and our unwavering reliability.
Do you need help developing a cloud strategy for your business? Contact our team at 844.426.7844 any time. We’re here to help!
In an ideal world, technology would be a consistent source of competitive advantage and benefit for small and midsized businesses. The reality is that many fail to realize that confidence.
Without the right resources and support, even a highly skilled technology team can become overwhelmed by the growing list of technology management duties. When important tasks get neglected, it creates ripple effects throughout an organization that damage productivity and efficiency.
The co-managed IT services model solves these problems by providing your existing IT team with all the support and resources they need to successfully plan, manage, and defend your network technology.
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