Customer delight is the key to success in business, and cloud is one of the foundational building blocks and enablers for the digital technologies like analytics, machine learning and artificial intelligence that can serve to enhance customer experience significantly. Instead of spending time on concerns about infrastructure and resources, enterprises can shift focus on their core business by using the public cloud. As per the sixth Cloud Native Computing Foundation survey, the top three benefits of cloud native technology include faster deployment time, improved scalability and cloud portability.
The public cloud is defined as computing services offered by third-party providers over the public Internet, making them available to anyone who wants to use or purchase them. They may be free of charge or sold on demand, allowing customers to only pay as per usage for the CPU cycles, storage or bandwidth they consume. Multi-clouds or multiple public clouds are also being used by banks to avoid vendor lock-in and reap the benefits of competition among cloud providers.
The main benefits of using a public cloud for banks are:
Security concerns with respect to adoption of public cloud is misplaced. With inbuilt identity and access management and other design considerations for securing applications and secure DevOps processes as part of public cloud infrastructure, bank users and customers don’t need to worry where the application is deployed regardless of location. An end user advocacy group body called Cloud Customer Standards Council has come up with a reference architecture for securing workloads on public cloud which can standardize security on cloud.
Banks need to keep the following aspects in mind while assessing readiness towards Public Cloud:
Banking Visionaries’ Council in a paper on Banking on Public Cloud – Reimagining Business Agility, lists the key cloud migration strategies and Cloud Governance and operating model that can be adopted by banks. Cloud migration strategies that can be adopted by banks include Rehost, Replatform, Repurchase, Refactor, Retain, Retire where “Rehost” can be used when change required is minimum and “Replatform” or “Rearchitect” when change required is significant. According to the paper, a bank must design its cloud architecture to be flexible enough to support both its infrastructure and banking applications at different stages of evolution, with the bank using public cloud and SaaS for its IT needs in its final stage of cloud journey.
The journey towards cloud and cloud native technologies makes a real difference to the profitability of a bank. Keeping an open mind towards these technologies ensures business success.