Cloud computing represents one of the largest non-lending investments a bank will make over the next decade. Looking for ways to get value from your cloud migration? Ask yourself: “What would a private equity firm do?”
By taking a private equity-inspired approach to creating and capturing value, financial services firms can transition to a secure cloud environment without ceding profits to an outside entity. Here are our top recommendations to help you realize a return on your investment in cloud migration.
1.Don’t miss the big picture by thinking of the cloud as only an infrastructure play
Financial services firms need to fully transform their development, operations, security, risk and compliance, and business teams to work differently. Cloud and agile methodologies work together to enable faster development cycles, more efficient capability deployment and improved customer experiences. Teams can more than double their productivity by eliminating and automating the low-value activities they’re using to manage legacy environments. 1
2.Understand demand volatility and patterns (in other words, managing beta)
Internal IT is provisioned for a worst-case scenario, but the cloud lets you pay for only what you consume. The cloud is also not all-or-nothing. The cost of migrating some applications may far outweigh the benefit from running on cloud, and it’s important to plan for what workloads will remain on-premises.
3.Know that optimization doesn’t end with migration
One of the cloud’s biggest benefits is also a major risk: instant provisioning allows for rapid innovation but can also cause demand to grow exponentially. Confronted by millions of product configurations available, many financial services firms have left it to individual business units to manage themselves.
To measure the benefits of migrating to the cloud, financial services firms should deploy monitoring, software asset management and financial management tool and services to track spend and ramp consumption up and down as needed. A shared governance framework and a set common policies are key to enable innovation while controlling costs and managing risk.