How to Successfully Migrate to the Cloud: Migration Strategies for Your Bank

bank employee implementing cloud migration

Does cloud migration feel like a passing fad to you? Or is it here to stay? The numbers don’t lie—per the American Bankers Association, 90% of banks keep at least some data, applications, or operations in the cloud. So, is it time for your bank to make the move too? Here’s what you need to know about how migrating to the cloud will impact your bank.

Cloud Migration: Understanding the Basics

Cloud migration is the process of moving data, applications, and other business elements from on-premises infrastructure to the cloud. This transition is driven by the need for scalability, flexibility, cost-efficiency, and enhanced security. 

For banks, migrating to the cloud can revolutionize their IT infrastructure, making operations more efficient and customer-focused.

How Your Bank Will Benefit from Migrating to the Cloud

  • Cost Savings: Moving to the cloud eliminates the need for costly on-premises data centers and hardware. This leads to substantial savings in terms of hardware and maintenance costs.
  • Scalability: Cloud services offer banks the ability to scale their IT resources up or down as needed. This is particularly valuable during peak periods, such as month-end transactions.
  • Disaster Recovery: Cloud providers typically offer robust disaster recovery solutions, ensuring data continuity in case of system failures or other disasters.
  • Enhanced Security: Cloud providers invest heavily in security measures. This helps banks protect sensitive customer data, mitigating the risk of cyberattacks.
  • Remote Accessibility: Cloud services allow authorized personnel to access critical data and applications remotely, enhancing flexibility.

Are There Risks to Using the Cloud?

No technology is perfect! While the benefits of the cloud can transform the way you do business, there are always risks to be aware of.

  • Data Security Concerns: Storing data off-premises can raise concerns about data security. However, cloud providers have robust security measures in place.
  • Data Transfer Complexity: Migrating large volumes of data to the cloud can be complex and time-consuming. This requires careful planning and execution.
  • Integration Challenges: Merging existing systems with cloud services can present integration challenges. Compatibility and data consistency must be addressed.
  • Regulatory Compliance: Banks must ensure that they comply with industry-specific regulations and standards, even in the cloud environment.

Is Your Bank Ready for a Cloud Migration?

Before diving into the cloud, it’s crucial to assess your bank’s readiness. Start by evaluating your IT infrastructure, identifying business goals, and understanding the various cloud service models and deployment options.

Evaluating Existing IT Infrastructure: Take stock of your current infrastructure. Assess what can be moved to the cloud and what needs to stay on-premises. Ensure you have a clear understanding of your hardware, software, and data storage needs.

Identifying Business Goals and Objectives: Define your objectives for the migration. These could include cost reduction, improved customer service, or enhanced security. Your goals will guide your migration strategy.

Cloud Deployment Models You Can Choose From

Banks have several options when it comes to cloud service and cloud deployment models. With any model, you’ll see the most efficiency and security when you work with a trusted MSP (managed service provider). 

If you choose a cloud hosting provider that has little banking experience or can’t offer you the one-on-one support you need, your bank’s sensitive data will be vulnerable to security breaches. 

Cloud deployment models include:

Public Cloud

Resources are owned and operated by a third-party cloud service provider, offering scalability and cost-effectiveness.

Private Cloud

Infrastructure is operated solely for a single organization, ensuring control and customization but requiring higher costs.

Hybrid Cloud

Combines public and private clouds to offer flexibility and customization while maintaining security and control.

How to Create Your Cloud Migration Strategy

Banks can choose from various approaches to cloud adoption:

  • Hybrid Approach: Combines existing infrastructure with cloud resources. Banks can move specific applications or data to the cloud while maintaining some on-premises.
  • Multi-Vendor Approach: Involves using multiple cloud providers to access specific services, capitalizing on the strengths of different providers.
  • “All-In” Approach: Banks can choose to migrate all their IT infrastructure to the cloud, fully embracing the cloud environment.

When choosing a development strategy, banks can opt for:

  • Rehosting (Lift and Shift): Migrating existing applications to the cloud without significant modifications. It’s a quick way to move to the cloud but may not take full advantage of cloud benefits.
  • Replatforming: Slight modifications are made to applications for better cloud compatibility. It offers a balance between speed and optimization.
  • Refactoring: Significant changes are made to applications to optimize them for the cloud. This approach maximizes cloud benefits but requires more effort.
  • Rebuild: Applications are rebuilt from the ground up to fully leverage cloud capabilities. It’s a long-term strategy for complete optimization.
  • Replace: Existing applications are replaced with cloud-based alternatives, streamlining the transition to the cloud.

Want a Successful Cloud Migration for Your Bank? Here’s How to Do It

Executing a successful migration to the cloud involves a series of steps, including:

1. Planning and Assessment: Start by creating a comprehensive migration plan. Assess your current infrastructure, identify dependencies, and define migration goals.

2. Migration Execution: Execute the migration according to the plan, moving data and applications to the cloud. Ensure a well-coordinated effort with minimal disruptions.

3. Testing and Validation: After migration, thoroughly test and validate the cloud environment to ensure that everything functions as expected.

4. Post-Migration Optimization: Continuously monitor and optimize your cloud infrastructure to improve performance and cost-efficiency.

Unless you have an in-house IT team with cloud migration experience, these steps may leave you at a standstill. They’re good to be familiar with but you need expertise if you’re going to execute a successful migration. 

Partnering with a cloud banking expert like RESULTS Technology will be your best asset. Our team has extensive experience in cloud migration and will guide your bank through the transition process.

We can help you stay safe, choose the right models for your employees, and help you ease into the transition. Migrating to the cloud doesn’t have to be a headache—let RESULTS Technology help your bank! 

Contact us at RESULTS Technology today and let our experts guide you through the process.