Welcome to yet another post from our weekly series, which is usually based on how cloud computing helps different verticals in meeting industry-specific challenges and emerging as the winner of the time. In our previous post, we covered cloud migrations for the Electronics Industry (LINK: How Does Cloud Migration help your Electronics Business? Migrate to Cloud with LogicEra!) and discussed how Electronic businesses are leveraging the power of the cloud to improve efficiency, reduce costs, enhance security, etc. In this post, we will discuss how cloud migration is helping Banking businesses in improving operational speed, enhancing data security, developing customer insights, reducing costs, and much more.
Cloud migration has not remained a luxury anymore. It has become a necessity as it can impact even your survival, especially if you are in the banking sector. There are several examples of cloud computing in the banking sector. Though it was still not, many businesses at pre-COVID times took it as a luxury. However, the pandemic has acted as a wake-up call giving every one of us a lesson that every organization must include cloud and healthcare in their strategy. In this article, we will discuss why a banking business should move to the cloud, what are cloud computing challenges the banking sector is facing, and why are they facing these challenges. So, let’s break it all.
Advantages and Disadvantages of Cloud Computing in Banking
Top 3 Benefits of Cloud Computing in the Banking Sector
Though there are plenty of ways cloud computing can deliver ultimate overall business and operational performance for banks.
#1: Reduced Costs
Cloud computing reduces costs for banks in top three ways that are:
- By eliminating the need for storage, security patch updates, and on-site infrastructure maintenance. Moreover, since these are not required, banks do not even require the workforce to perform these activities. Training and upskilling the workforce requires a fortune that banks don’t need to pay anymore.
- The other way cloud computing helps the banks reduce costs is through its scalability feature that allows the banks to scale up or down the resources as and when required.
- The third way you save big through the cloud is that most cloud service providers (CSPs) offer a pay-as-you-go pricing model. So, you only pay for what you use.
#2: Improved Data Security
Most CSPs work consistently towards making their product better by comprehensively and regularly analyzing and reviewing them for security vulnerabilities if any. They constantly provide updates whenever and wherever required. The best part is that cloud technology is anyway designed keeping data in mind.
#3: Enhanced Operational Speed
An enormous amount of useful data is generated in the banking sector on a daily basis, which can be used for improving customer experience. However, with the legacy infrastructure where the data is stored in siloes, banks face several constraints in using and connecting this data. Not just that, the precise and timely regulatory reporting is also impeded by this siloing.
Not just the data capture and storage but even interpretation processes can be centralized by cloud technology. Furthermore, the cloud also reduces costs involved in executing these technical processes apart from generating faster, richer, and more precise data-led insights that banks can bank upon when it comes to driving performance.
Challenges of Cloud Computing in the Banking Industry
Though there are a few disadvantages of cloud computing for banks, if approached rightly and resolved, they can work as opportunities. Here are the main 3 of them:
#1: Lack of Synchronization between IT and the Business
Not every bank has the right alignment between its IT and the business objective, and there is at times a huge gap. However, if figured out and resolved can grant the banks with synergy between these two and can be an influential market differentiator.
#2: Lack of Cloud Skills
Your in-house IT team would have been performing amazingly but to move to the cloud you need cloud expertise. Though you can always train them and upskill them to cloud experts, it would not only require a fortune to be invested but you will have to keep investing this fortune in consistently upgrading the skills. However, getting supplemental support from a Managed Cloud Services Provider or getting a cloud consultant can solve the purpose.
The Final Words
The benefits of the cloud once again prove that when you make investments in the right business areas, they are sure to resonate with customers and clients alike. Cloud not only offers convenience and cost savings but also almost permanent uptime in comparison to an on-premises infrastructure. Perhaps these are the advantages of the cloud that have resulted in the massive growth that the cloud migration market is experiencing. A recent report by Markets and Markets depicted that the cloud migration services market is expected to grow from USD 3.2 billion in 2017 to USD 9.5 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 24.5% . And, why not? After all, apart from all other benefits, the cloud provides you with data with an added layer of protection.
Migrate to Cloud with LogicEra!
Cloud computing is rapidly gaining ground in the media industry. Of course, migrating to the cloud could be a worthwhile move but don’t forget it is not as easy as it may seem from the top. You must first research well before you jump onto the cloud computing bandwagon. Make sure all your cloud implementations are backed with an effective cloud migration strategy. Just in case you require any supplemental support you can get a cloud consultant on board or hire a Managed Services Provider (MSP).
There are several cloud migration service providers that provide cloud services for Music businesses as well. One of the most reputed cloud migration companies in the UK and UAE is LogicEra. The MSP helps you seamlessly and safely migrate your infrastructure to the cloud within the shortest possible time. Click here to get a free POC (Proof of Concept).