A Matter of Trust: The Financial Industry Embraces the Cloud
HR and CRM applications have been at home in the cloud for some time. Now, the financial industry is embracing the cloud for an increasing number of their applications. If the analysts at Gartner are right, by 2018 at least 25% of new core financial applications deployed by large organizations will be in the form of public cloud SaaS.
This is noteworthy because the world of finance has been slow to embrace cloud computing. Much of the hesitation stemmed from concerns about data security, as well as uncertainties about the reliability of cloud infrastructure, the availability of applications, and the potential disruption to essential services while migrating from legacy in-house platforms to the cloud.
The Proof is in the Cloud
Things have changed as those in the financial sector have gained faith in the cloud. They’ve seen the results and heard the praises of IT leaders in other industries, including those in highly regulated industries like healthcare. They’ve done their research, and know that the necessary controls are in place in the cloud to ensure data integrity, compliance and availability. They also realize that cloud vendors want their business, and are taking the extra steps required to understand and support their unique needs.
According to a 2017 survey, 72% of U.S. finance executives said they are either using cloud-based solutions or plan to do so in the future, up from 62% in the 2016 survey. By 2020, Gartner analysts say that almost 40% of enterprises will use the cloud to support more than half of transactional systems of record.
Outsourcing infrastructure management to a cloud services provider relieves organizations of having to build and maintain their own data centers or colocated hardware. Cloud solutions can be used to automate manual tasks, freeing up employees to focus on more value-added endeavors. They can also help simplify and speed up workflows.
With BYOD becoming “business as usual,” cloud solutions support the requisite anytime, anywhere access along with the critical security to meet compliance and data safety requirements. To keep up with the pace with a fast-changing business landscape, financial organizations must be able to accelerate innovation and time to market. The cloud supports that by powering analytics for real-time insights that can help organization make quicker, more informed decisions.
The cloud also offers financial organizations much needed flexibility. They can employ any combination of public cloud services, private cloud services, colocation and on-premise services to best meet their needs for cost, performance, security, privacy, and control.
The Cloud in Your Future
Aside from all the benefits that cloud solutions offer, there’s the fact that they can help organizations adapt to changes within the financial industry — and across the business landscape.
In the coming years, consumers will still need banking services. However, they may not require a bank to get them. It’s not just a matter of people relying more heavily on their mobile devices for financial transactions. The so-called sharing economy that now exists for cars, taxis, and accommodations may include financial services in the future. Cloud solutions will likely play a role in matching providers and users of capital.
Robotics, artificial intelligence and the Internet of Things (IoT) are all poised to change how things are done in the financial industry in the future as well. (Watch for a blog on this soon.) Expect cloud-based solutions to play a role, whether by powering the analytics involved, storing data, or possibly integrating robots and embedded devices into the web and cloud computing environments.
So, if you’re in the financial industry — or involved in IT support for financial applications in any kind of organization, it’s time to consider the cloud if you haven’t already. To get started:
- Do your due diligence. There are lots of cloud services on the market, and lots of cloud service providers offering them.
- Make a business case. Note benefits such as cost savings, enabling growth, supporting innovation and faster time to market, improved usability, opportunities for process improvement and agility, and support of business transformation.
- Test drive the cloud. Assess your applications and find one that can easily be moved to the cloud. Evaluate how the experience goes.
- Rethink your IT strategy. Consult outside experts if needed to help you assess what you have in terms of IT assets, what your organization’s short- and long-term goals are, and what IT resources can best help meet those goals.
- Keep the future in mind. The cloud isn’t just about solving IT challenges today. It can help position your organization to leverage emerging technologies and trends.
For more information, talk to our solution experts at US Signal. From assessing your current IT service portfolio to seeing you through every step of a cloud migration, the US Signal team can help you use the cloud to enhance your capabilities, optimize your resources, and succeed in a rapidly changing business world. Call 866.2.SIGNAL or email [email protected]