Key Challenges Faced by Banks and FIs During Cloud Migration
Resistance to adopting cloud technology due to heavy reliance on legacy infrastructure and monolithic applications
Complexities due to strict laws governing data security and privacy in the banking and financial services industry
Lack of buy-in for cloud from industry bodies that formulate and oversee regulatory compliance
Concerns related to moving a large volume of data onto the cloud can create inconsistencies or downtime if not executed with utmost precision
Incompatibility of core applications with cloud-based technology that may call for rearchitecting or rebuilding
Lack of in-house resources to plan, test, and execute a full-fledged cloud migration strategy
Missing synergy between the IT and the business units, which often leads to conservative budgets and limited implementation
Examining the current IT infrastructure and offering recommendations on cloud strategies, cost optimization, and cloud migration
Migrating applications and data infrastructure from on-premise data centers to cloud-based environments
Deploying a containerization strategy to make the code portable, lightweight, and scalable
Re-engineering or rewriting applications to leverage the inherent properties of cloud-based platforms
Implementing platform-as-a-service (PaaS) solutions to develop, deploy, and manage applications in the cloud
Adopting a security and compliance policy for the cloud infrastructure to mitigate potential threats
Opus leverages the modern tech stack through cloud migration
Ability to leverage the latest technology, such as AI, ML, and NLP, with a pay-as-you-use model
Allows banks to provide differentiated offerings through modern technology adoption
Enables faster time to market, new revenue streams, and meets the evolving needs of customers through the use of dynamic application infrastructure and third-party integrations
Opens the gateway to an API ecosystem, data management, and powerful analytical tools that could be leveraged to deliver real-time payments, liquidity management, and high-value cross-border transactions
Optimizes the cost of operations and maintenance through improved resource utilisation, demand-based scaling, and eliminating the upfront capital cost
Improves data security by integrating data governance frameworks and using hyper-scale services to keep the mission-critical system up and running
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Frequently asked questions
Cloud migration is a critical step for any financial institution, and it should be preceded by a well-documented migration strategy. The strategy should outline the right approach for moving the application as well as resource allocation in the cloud. In terms of application, an organization must choose from one of the seven options: rehost, replatform, relocate, repurchase, refactor, retire, or retain. The approach for resource allocation depends on how data should be stored and shared and the kind of computing power that can be provisioned on demand.
The five phases of cloud migration are prepare, plan, migrate, operate, and optimize. The first phase includes identifying dependencies related to the app and database, and understanding the current database workload. The planning phase includes making a rational decision on the right migration strategy to choose, such as lift and shift, relocate, rearchitect, or retire. The third phase is where the migration takes place, followed by an exhaustive testing routine. The operating phase involves following best cloud practices, and the last phase involves defining performance benchmarks and optimizing for efficiency and cost.
The ability to integrate modern technologies, such as AI and ML, with core banking applications is one of the key benefits of cloud migration. It also opens the gateway to the API ecosystem, which is critical to providing differentiated offerings to customers through co-creation with vendors. With effective cloud migration, operational and maintenance costs can be reduced, as one can opt for a pay-as-you-use pricing model.
Cloud deployment means transferring the application code and database to a cloud infrastructure – private, public, or hybrid. Most financial institutions opt for customized cloud services offered by the top global players, such as AWS, Google Cloud or Microsoft Azure.