Hybrid cloud is important for financial services because, like many other industries, it involves sensitive data. Much of that data is best left on a private server, or on a dedicated server. But there are public cloud services the financial industry can benefit from, when sensitive data is not in question. A hybrid cloud pulls it together.
What is Hybrid Cloud, Anyway?
You know all about on-premise servers, infrastructure and storage. Odds are it is what your bank or other financial services company is using already. With on-premise operations, you keep all of your data, and all of your infrastructure at your physical location. It is safe and secure, but more challenging to expand and change. Your in-house staff could manage your private cloud, or handle it through a cloud services provider.
The public cloud puts all of the same things out into the world. You get the benefits of cloud computing, including cost savings and flexibility. But, your data might not be as secure as you would like. A hybrid cloud gives you the advantages of each system, mitigating the problems you might encounter using only one system.
Hybrid cloud is not using part of each system separately, though. Taking this approach, your tech is intertwined. You could, for instance, use a public cloud service to send data to your private company cloud. A hybrid cloud environment allows your applications and services to exchange data. The operations work as if they are part of a single system rather than several parts of various clouds. So, while your sensitive data is kept safe, it is not completely, permanently isolated from your entire system.
Challenges of the Cloud for Financial Services
The cloud is an attractive concept for many companies. As appealing as it is, however, it poses challenges to the financial industry. Government regulators may not allow companies to adopt the cloud fully, owing to issues with security and privacy. Customers may also take issue with the security of the cloud, whether it is a perceived or real concern.
Risk management is another challenge. Board level leaders may question how risky it is to move data off-premise. Financial traders, portfolio managers, and other staff want to keep their proprietary strategies and details private. The risk of losing that data is enough to make people very wary of any info leaving the premises. Keeping the most important and sensitive information on site, you can still use the cloud and handle risk management with ease. Hybrid cloud is a stepping stone to a wider cloud adoption. Use it, and your business can dip your toes into the technological water.
Benefits of Hybrid Cloud for the Financial Industry
There are many benefits to hybrid cloud that address the challenges of cloud adoption. Hybrid cloud can reduce costs for financial services companies. Variable expenses can be more affordable than fixed expenses, and with a pay as you go cloud service your budget is more realistic. These cost savings give your company resources to improve your services or pass savings on to clients.
The cloud improves efficiency, again something that trickles down to your customers. Your bank can respond to scaling needs, market demands, and other situations that call for quick action. Financial customers often have high demands, and want access and information quickly.
Using the cloud you can give your clients what they want. The hybrid cloud environment can and should be purpose-built for your specific requirements in the financial services industry. Security and compliance are at the forefront. This should satisfy everyone's needs, from regulators to your board to your clients.You may even find that your hybrid cloud approach offers higher security.
Reports show that users of services that are provided suffer from fewer attacks than those who rely on on-site tech (TechTarget. Cloud services providers understand security and what it takes to protect data, because they do this constantly for a wide variety of clients. Again, this is where a purpose-built provider is ideal. A cloud services provider skilled and experienced in the financial industry knows what to do to keep your company compliant and secure. With the right precautions and the assurance that your sensitive data is in compliance, a hybrid cloud can be very secure.
Disaster recovery is a major benefit of cloud-based computing. In the financial industry especially, a disaster of any sort can destroy your business. With important information stored in a retrievable way, your business can be back up and running after even a large-scale incident.
Hybrid Cloud and Your Tech Team
Hybrid cloud allows tech teams to view every type of cloud through one portal. This is important for a few reasons. It helps your tech team keep things organized and in check. With a hybrid cloud treated as one system, you can reduce the risk of cloud sprawl. Cloud sprawl comes in the form of too many things on the cloud for no good reason. It also makes your IT team more efficient. Having a handle on all of your cloud services, public and private, reduces the amount of time spent dealing with management. Your IT team can focus on operations that improve your business and provide better financial services to your customers.
Adopting the Hybrid Cloud
Maybe you have been considering cloud computing for your financial services company, but the thought of data going public held you back. It is time to reconsider. There are clear benefits to what the public cloud can offer to your business, and a hybrid approach promotes security. You will enjoy the flexibility, scalability, and affordability of the cloud, without compromising on your business practices.
CloudHelix is a cutting-edge cloud services provider. We count financial services companies among our customers and would be thrilled to discuss the hybrid cloud with your business, too. Give us a call or email us for more information.