The Financial Services industry is one of the top players in cloud computing. It can be said that both industries have a symbiotic relationship. Financial companies use the power of the cloud as a tool to better their operations and services. On the other hand, cloud providers show the world how they can help one of the largest industries use the possibilities of technology to shape the world.
Recently, there has been an increasing trend of financial service companies adopting private cloud as their sole solution or combining the powers of both public and private to form hybrid clouds. Here's a dive into the reasons behind this shift.
The Highest Priority for Financial Services
It is an undeniable fact that there is a digital transformation trend going on in the financial services industry. The COVID-19 pandemic has accelerated the trend, and companies are on a quest to find the best solution to tailor to their business needs and growth strategies. Additionally, there are also security and flexibility related issues concerning traditional IT infrastructures. This situation is where private clouds come as a perfect solution.
No other industry focuses on the security of users as much as financial services. It is a non-negotiable factor in the industry. To ensure utmost safety in storing and processing sensitive data, financial institutions need to ensure that there are no possibilities of breaches or threats. The independent infrastructure set up of private clouds allows companies to host their applications securely. Hence, security is definitely the primary driver of financial companies to private clouds.
Other Drivers to Private Clouds
The sensitive data that financial services enterprises also have to abide by geopolitical compliance rules. With private clouds, companies can choose to deploy private clouds in regions of their choice (either hosted or on-premise) to comply with regulations.
Other than security and compliance, private clouds also allow financial services companies to harness all other cloud benefits and more, such as:
- Easy scalability
- Reduced time in deployment (with Hyper-converged Infrastructure)
- Optimized use of resources
- Integration of applications and tools
- Multi-tenancy within a single organization
- Ease of upgrades and updates
- Data recovery mechanisms
The role of private and hybrid clouds in financial services will only increase in the coming years. Studies show that over 60% of financial institutions are already investing in some cloud strategy or the other, and the rest are likely to follow suit. Financial services firms realize that cloud is more than just a technology; it is a way forward to the future. At VEXXHOST, we help companies with this digital transformation by providing enterprise-grade OpenStack-based cloud solutions, including dedicated and highly secure private cloud environments.
Speaking of private clouds, you can now run on a fully agile and customized cloud from VEXXHOST, with no licensing fees and smooth 2-week migration. In fact, we're ready to put our money where our mouth is. We're so confident in being able to save you at least 20% or more on your current cloud infrastructure expenditure that if proven wrong- we'll give you $1,000 credit to our public cloud.
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