Banks are now embracing hybrid-by-design architectures to enhance the compatibility of their observability and monitoring tools and controls, leading to improved operational efficiency and risk management.
Financial institutions are undergoing a transformation in their operational models as they anticipate a significant increase in cloud costs over the coming years. This shift is driven by the need to meet evolving business requirements and the infrastructure demands for technologies like artificial intelligence. Regulators are closely monitoring the potential impact of cloud outages on vital financial processes, prompting U.S. banks to invest in tools such as IBM Apptio for enhanced financial operations and cost optimization.
The adoption of hybrid-by-design architectures enables banks to strategically place their workloads in either cloud or on-premises environments based on their specific needs and priorities. This approach allows for greater flexibility and optimization in resource allocation, ensuring that mission-critical systems are efficiently powered by AI and cloud-native architectures.
In response to these changes, financial institutions are reimagining their operating models to embrace intelligent cloud and edge technologies. Microsoft Cloud for Financial Services is designed to address banks’ regulatory, security, and compliance requirements, with Azure tools like Cost Management and Azure Advisor offering deeper insights into cloud spending and resource allocation. Additionally, Azure Arc provides a unified platform for managing operations across different infrastructures, enabling seamless workload extension during peak transaction periods or intensive risk modeling scenarios.
Customized security controls and cyber resilience are paramount for safeguarding sensitive bank data in a hybrid environment. IBM’s Financial Services Cloud Council facilitates the sharing of control sets among banks to enhance security measures, with a focus on segregating sensitive data in private cloud or on-premises environments. Advanced security tooling in the cloud improves threat detection capabilities, allowing for tailored controls to restrict access to various data environments in alignment with zero-trust security principles.
To mitigate the impact of cyber threats, banks are exploring innovative solutions like digital twins to ensure business continuity in the event of a major cyberattack. By replicating critical structures across multiple cloud environments, banks can swiftly transition their operations to alternative platforms, minimizing downtime and potential financial losses. This proactive approach to cyber resilience underscores the importance of leveraging technology to protect against evolving security challenges.
