How Hybrid Cloud Solutions Can Enable Banks To Achieve Digital Transformation?

Digital transformation is the use of digital technologies in the areas of businesses or culture to change or develop new strategies or procedures to attract more customers. Today, it has become imperative for businesses to undergo digital transformation to survive and grow. Digitalization of business attracts more clients as it makes the process simpler and more efficient. Recently, the hybrid cloud model is increasingly being used by banks for the purpose of digital transformation.

What Is A Hybrid Cloud?

Hybrid cloud is a combination or a mixture of a private cloud with one or more public clouds powered by an administration software that enables the communication between various services. In simple words, it’s a model which combines a public and private cloud and sets up a communication link between them. This ensures that the data can be stored and utilized swiftly while being secure and safe.

A hybrid cloud service ensures business with greater flexibility as it shifts workload between cloud solutions according to the requirements. It basically relies on a single cloud strategy where it manages each cloud environment one by one. The hybrid architecture eliminates many security risks by controlling the exposure of private data into the public cloud.

Advantages Of Using A Hybrid Cloud

With the aid of a hybrid cloud, the need for IT professionals to manage servers is curbed. This makes sure that these professionals can work on projects that are more valuable and profitable. This also means reduced costs as the need for a third force for the management of servers is eliminated.

With the help of a hybrid cloud, one can separate computing resources in public and private. By keeping the critical data on the private servers and less sensitive data on the public clouds, it ensures the provision of high-performance, reliable data to the banks.

Security of valuable data is the most crucial part. It can be a demanding task to protect the resources of the bank, especially in the case of public clouds. A public cloud is more vulnerable to cyber attacks as they are available to the public. With a hybrid cloud server, security is enhanced due to the use of a combination of private and public clouds. Although data stored in a private cloud may also have to be transferred to the public cloud for various processes, encryption of data is implemented to ensure maximum security.

Here Are Some Key Benefits Of Hybrid Clouds

• The most prominent benefit of implementing a hybrid solution is control. Rather than depending on a third-party cloud provider, organizations can customize their private space according to their needs and adjust them accordingly.
• Another important benefit is speed. A hybrid cloud environment allows the IT staff of the company to optimize network configuration and minimize the delay which makes it easier for the data to be placed at the correct location. They can further increase their speed by taking advantage of edge computing to locate crucial services closer to end-users.
• Protecting the customers’ valuable data is always a challenge in public clouds. Providers take several measures to protect the data, but they fail in doing so, as cyberattacks are very common in public clouds. Hybrid cloud solutions also provide us with more security. Extension encryption methods are used in hybrid clouds to ensure that the data remains as secure as possible.
• Private cloud or network requires a lot of investment to build, expand and also to maintain. The firm could expand only by purchasing new private clouds before public cloud service was available. But, one can overcome this drawback by using a hybrid cloud. These hybrid cloud architectures allow the data or operations to occupy the private cloud and expand the network using public cloud service. Hence, hybrid clouds provide scalability to private and public clouds.
• Hybrid clouds are beneficial in reducing costs due to the balance of public and private networks provided by it. Hybrid networks store only important data in the private cloud, hence it reduces the cost of transferring data from one cloud to another or purchasing a new provider.

How Does It Accelerate The Digitisation Of Banks?

A hybrid cloud framework enables banks to leverage technology to meet their business goals. It is crucial to continuously innovate and try out new ideas to drive digital transformation. Hybrid cloud offers a platform where they can build and test new ideas without the need for a complicated model.

In banks, there are applications that require both public and private cloud models. In such cases, hybrid clouds can simplify application management. Moreover, it can be difficult to ensure data safety while cloud computing. Hybrid allows the organization to store some data on-premise while some data in the public cloud. Consequently, it provides agility and flexibility, along with data security.

The demand and objectives of banks change over time. Hence, a computing service that is effective in creating and testing various applications can be of great significance.

While you are working on a hybrid cloud model, you will also need containerization, which groups the applications that need to be run. It is essential to make computing services more efficient and speedy. Containerization works on making the model-independent and allows you to run the software harmoniously.

Conclusion

Hybrid cloud model is playing and will continue to play a significant role in the digital transformation of banks. It helps to connect and attract more customers through digitalization by providing various features like scalability, agility and savings without compromising the security of the sensitive information. By leveraging hybrid cloud models, financial institutions like banks can undergo digital transformation to meet the needs of the customers without increasing the costs involved.