In part 1 of this three-part series on the capital markets industry and the cloud, we talked in general about making the move to cloud. Here we discuss issues related to managing and optimizing.
In a way, you can think of cloud as any other kind of utility. But, as with a utility, costs can grow rapidly and must be managed. An effective cloud optimization capability can be the difference between achieving your business case and missing the mark.
Ideally, you’ll adopt automated management tools to achieve more control over costs, improve governance and increase accountability in your cloud consumption. Effective cloud management and optimization is comprised of five critical components.
Cloud operations including support, cloud engineering, cloud service management, service desk and monitoring.
Security operations, defined as flexible cyber and data protection services that can secure cloud environments and infrastructure.
Cloud optimization services, or managing cloud costs through analytics, actionable recommendations and operational improvement, as well as application remediation and re-architecture.
Application management including support, ongoing maintenance, enhancements and upgrades.
Business process operations—the business layer on top of cloud technology assets and services that is focused on delivering improved business outcomes.
Application management is a particularly important aspect of any enterprise cloud plan. Proper architecture, design, development, testing, maintenance, modernization and renewal can help investment banks achieve cost efficiencies, continuous optimization and ongoing innovations within their application portfolio.
Raising the bar on security
Because of the nature of their regulatory and legislative landscape, investment banks are particularly concerned with security and risk. This environment makes it critical for a financial institution to identify data privacy, security and regulatory compliance risks to help enable a successful cloud transition. A careful assessment of this landscape should be paired with a reliable security operating model.
Before moving to cloud from the periphery to a mainstream IT strategy, capital market firms should:
Address the security and risk associated with cloud computing to protect clients’ information and assets.
Map regulatory requirements and approach.
Build internal trust in cloud-based operations, management and control in terms of ensuring resiliency, high availability and disaster recovery capabilities.
The good news for banks is that an increasing number of their peers have now made the move. A solid security reference architecture, in combination with understanding and leveraging the precedents, can ease the journey.
Coming soon: In the third and final part of this series on capital markets firms and the cloud, we’ll look at creating your roadmap to the future.