Publications like Forbes and Information Week are noting that more banks are utilizing cloud, despite the concerns over security and loss of IT control. The advantages are beginning to out weigh the risks while the risks are also being better understood and contained with different cloud services.
Banks already have the highest IT cost to revenue ratio of 14.3%, which is about twice the industry average of 3.7%. There are increasing cost pressures, due to regulatory requirements over liquidity, competition from non-banks, mobile banking, out of region recovery, on shoring for data sovereignty, and the need for increased IT agility.
It is difficult to ignore the advantages enjoyed by financial institutions like Commonwealth Bank who have gone from spending 50% of their operating budget on infrastructure to just 26%. Nearly 75% of their operating budget is now in apps and information rather than infrastructure through the use of cloud. “Moving storage to the cloud cut costs in half while it achieved similar savings in app testing and development. Expanding technology has also become easier and cheaper; while before it took the bank eight weeks and several thousand dollars to stand up a new server, now it takes eight minutes and 25 cents to do the same thing in the cloud, making the bank much more responsive to changing customer demands.”
Hitachi is working with a number of partners to help move financial institutions to the cloud with a variety of solutions for private, hybrid, and pubic cloud. One of our cloud partners is CSC who offers CSC Cloud solutions – powered by Hitachi Data Systems – for SAP HANA.
Hitachi’s unique x86 servers have LPAR (logical partitioning) technology, which enables the deployment of SAP HANA in LPAR virtualized environments. Server hardware resources are divided into multiple partitions, which appear as independent "bare metal" servers that result in increased utilization and reduced costs. With the ability to logically and securely partition the server, multiple SAP HANA-based workloads can run on a single system with minimal impact to application performance. Customers and partners like CSC can now deploy secure, LPAR-virtualized environments running SAP HANA on-premises and in the cloud, as well as in hybrid cloud environments. The power of SAP HANA complemented by support from Hitachi LPAR will help dramatically reduce cost of deployment through consolidation, reduce hardware costs, simplify infrastructure and result in faster time to value.
Hitachi Data Systems has also partnered with cloud services provider CGI to power SLA-based Storage-as-a-Service Offerings hosted within CGI’s Global Data Centers or Customers’ Data Centers. As part of its portfolio of Digital Transformation services, CGI can offer clients a number of secure cloud storage solutions that enable access to business critical data from mobile devices and traditional desktops. These solutions give clients peace of mind knowing that their data is safe and uncompromised. The services to be launched include bottomless edge to core storage using Hitachi Content platform and Hitachi Data Ingestor, and file sync and share as a service with Hitachi Content Platform Anywhere. These solutions are already in use by Foresters™, an international financial services provider committed to family well-being with over one million members in Canada, the United States and the United Kingdom. Based on Hitachi Data Systems most advanced cloud technology, the solutions can be hosted within CGI’s global data centers or in a customer’s data center in a private cloud model –offering clients flexibility, security and their choice for cloud deployment.
The inhibitors to cloud are being over come, and greater adoption of cloud is inevitable. You can bank on that.