Many industries and businesses have turned to cloud computing, reaping benefits like easier saving on costs that would otherwise have gone to running a data centre, increased business agility, and increased flexibility in terms of responding to change and demand. One industry, however, has been slower to migrate to the cloud — namely, the Banking and Finance industry. Understandably so as their biggest concerns are privacy, compliance and security. A survey conducted by the Cloud Security Alliance spanning 102 global participants from various banking and investment companies showed that data security concerns are the biggest stumbling block to having more firms adopt cloud.
Yet, the banking and finance industry is one industry that can benefit the most from using cloud services. To answer this quandary, a Hybrid Cloud model was introduced.
What is the Hybrid Cloud solution?
A hybrid cloud is a system which marries the use of a public cloud provider (like Google Cloud or Amazon Web Services) with a private cloud platform, designed to be used by a single organization. Both public and private systems work together via an encrypted connection. By using a hybrid solution, an organization can reap the cost-reduction and flexibility benefits of a cloud by relegating their non-sensitive operations to the public cloud and keeping a private, on-site infrastructure for the more sensitive data.
What are the benefits of going hybrid?
Cost reduction. One of the biggest benefits of migrating to cloud is being able to take advantage of the economies of scale. Hybrid clouds allow businesses that would otherwise have sacrificed this benefit to use the massive storage capacity of public cloud. Through a hybrid system, businesses are able to reduce operational cost of an otherwise much larger private data server they would need for both core and non-core functions. Plus, moving to the cloud can help firms reduce the costs and hassle of procuring hardware and software. Partnering with the right service provider also means companies can share liabilities and benefit from their expertise.
Agility. The adoption of cloud services will allow banks and other financial firms to increase their business agility, especially when it comes to growth, expansion and entering new regions. Moreover, using the cloud can give organisations the ability to respond quickly to the ever-changing technologies and customer needs. At the same time, retaining a private data system allows these organizations to mitigate security risks and assure their clients of their protection. This increased agility and assurance of security is a competitive advantage companies would want to leverage on.
Flexibility and Scalability. Private clouds do offer scalability to some extent, depending much on whether they are hosted on or off-site, but public clouds offer much more flexible arrangements for businesses. By moving as much non-sensitive function sand low-risk data to the public cloud, the hybrid system allows for banks and financial firms to enjoy the massive scalability and flexibility of the public cloud even as it frees up more space on the more secure private cloud for the higher-risk, sensitive information.
To conclude, the Hybrid Cloud system can be a great opportunity for the financial sector. It allows organisations to benefit from the advantages of the public cloud while mitigating much of the risks involved through the use of an on-site private storage. It gives a company more control over how to tailor its resources to match its business needs, providing much for flexibility and scalability as compared to relying only a private data server and more security as compared to relying on public cloud services.
That being said, there is no one-size fits all when it comes to cloud solutions for a company. Each system or solution carries its own risks and benefits that must be carefully weighed against each other. The right managed service provider will understand the concerns and constraints of your company and will know be able to recommend a hybrid solution that meets the unique needs of your business and industry. Infinit-O Global Ltd can help your company in utilizing and adapting to the cloud technology.
The global business landscape continues to flourish, and entrepreneurs must strive to find ways to adapt and optimize their businesses while maximizing cost. Like hybrid, entrusting accounting services to a third party outsource provider will provide not only the flexibility companies will need, but will also serve as an effective cost-saving strategy while maintaining high quality service. Know more about how your business can benefit from Infinit-O through its Finance and Accounting services.