Cloud Computing Magazine: Managed Cloud Services Offer Advantages for Financial Institutions
Wednesday, February 20, 2019 — Financial services teams worldwide are improving security, efficiency and agility while lowering costs by investing in cloud-based technology. Companies that have embraced digital transformation are 26 percent more profitable, on average, than their industry competitors. In addition, tech savvy businesses enjoy a 12 percent higher market valuation, according to the MIT Center for Digital Business.
Financial services teams worldwide are improving security, efficiency and agility while lowering costs by investing in cloud-based technology. Companies that have embraced digital transformation are 26 percent more profitable, on average, than their industry competitors. In addition, tech savvy businesses enjoy a 12 percent higher market valuation, according to the MIT (News - Alert) Center for Digital Business.
Digital transformation means different things to different people, but it’s generally understood that moving applications critical to your daily operations to the cloud is a key step. Industries shift on a dime, and financial services teams must be able react and respond in real-time – without losing productivity.
Among cloud technology’s most attractive benefits is its consumption-based pricing model. Costly CapEx investments in infrastructure have been replaced by more manageable, recurring OpEx fees based on consumption. Simply put, users only pay for what they use.
For some companies, public cloud environments are fine. For others, a managed private cloud is more appealing by virtue of increased visibility, flexibility and support.
Managed private cloud services help middle market companies meet customers’ specific business and regulatory requirements through customization within either a single tenancy or multi-tenant model. Built-in redundancies, flexibility and performance, along with the privacy of a dedicated infrastructure are critical to meeting compliance requirements and line-of-business applications in a reliable, scalable environment. With regulatory bodies, such as FINRA, increasing their scrutiny of business continuity plan, managed private cloud services offer a timely solution for digital transformations and the ever-increasing array of pain points that financial services companies face.
According to new research, out of 110 credit unions and community banks, 31 percent had just one employee in their IT departments, and 26 percent had only two. Just 12 percent had more than five IT staffers. These findings support the advantage of working with a cloud and managed IT services partner.
The right partner can translate your business and compliance needs into a single scalable solution that focuses on privacy and security, while providing white-glove, 24/7 support.
Randy Nieves is Chief Technology Officer and SVP of Product Management for NexusTek, a national provider of cloud, cyber security and managed IT services. NexusTek’s comprehensive cloud services portfolio is hosted in geographically redundant SSAE 16-certified data centers that leverage a software-defined architecture to bring together storage, computing, and other elements in a single solution optimized for managing customized enterprise workloads in the Cloud.