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Modernizing Your Financial Infrastructure with Hybrid IT

TimPeters

The financial services industry is undergoing a major paradigm shift as digital trends such as smart apps, rising mobility, and utility-based services challenge firms to conduct business faster and smarter than ever before. CIOs must find ways to optimize their IT infrastructures in order to succeed, making IT modernization no longer negshutterstock_174397931 (1).jpgotiable for institutions striving to compete in this aggressive global marketplace.

Operating in a fast-paced and rapidly evolving industry poses major challenges to IT departments, particularly as escalating demands for sophisticated applications and services place a major strain on traditional operating systems. Many firms are struggling to provide new financial services to satisfy their customers, including online and mobile banking applications that enable remote deposits, bill pay, and account management. For small and midsize businesses (SMBs), the ability to modernize and virtualize their IT environments and provide customers the services they need are essential to creating a successful business model. Those who fail to invest in these critical areas risk losing revenue and market share to the competition.

Adopting a Hybrid IT Infrastructure

SMB IT solutions are revolutionizing business operations across the financial services sector. Many SMBs are looking to a powerful new style of IT that can execute complex workloads, enhance security, empower an increasingly mobile user base, and provide optimal flexibility to meet customer demand for new financial services. These industry-leading solutions, known as Hybrid IT, deliver the reliability and security of in-house technologies—which are crucial to protect customer information, a primary financial services issue—as well as the immense scalability of the cloud to support a variety of financial mobile apps. Hybrid IT provides firms greater control of their financial data and allocates compute resources between on-premises and off-premises IT to achieve maximum efficiency.

According to a recent survey of SMBs, 42% of respondents stated that infrastructure is their top IT concern. However, 61% of business owners admitted to overlooking new technologies if they seem too complicated. Hybrid IT solutions are designed to accelerate business and dramatically simplify IT management, leveraging traditional IT, private cloud, and public cloud. This provides financial institutions robust platforms tailored to their specific needs. Today’s firms are investing heavily in advanced technologies, from 25% of the total $455 billion IT expenditure in 2015 to 30% of the projected $475 billion IT expenditure in 2020.


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Source: IDC Reports, 2017

  To ensure competitive advantage, savvy firms are employing these best practices to implement Hybrid IT:

  • Analyze the current IT environment. The first step in transforming to a hybrid infrastructure is evaluating the capabilities and limitations of the current system. Firms must identify evolving IT requirements for sophisticated financial applications and services—like faster processing, higher bandwidth, or more flexible storage.
  • Create an innovation roadmap. Defining specific goals helps CIOs determine which IT investments are necessary, as well as establish a timeline for spending and deployment. This acts as a framework for all business, operational, and financial considerations.
  • Assess current applications and provision of compute resources. Consider issues such as processing latency, financial data security, and compliance. Anything not adversely affected by these considerations may be a viable candidate for the cloud.
  • Determine future IT requirements. Based on the innovation roadmap, IT departments can pinpoint applications and services that will be important in years to come, as well as the right mix of on-premises IT and cloud to accommodate these new workloads

 Harnessing a Hybrid Business Model

In a 2016 study, Aberdeen Group found that IT innovation is integral to SMB success. Those who pursue a hybrid business model are six times more likely to see improved performance and scalability. Additionally, innovators are twice as likely to grow capacity and 65% more likely to reduce overall IT expenditures.

Hybrid technologies provide financial SMBs with the agility to keep sensitive data on-premise while executing a variety of apps and workloads in the cloud. This dramatically reduces operating costs, particularly as cloud computing lets firms pay as they go, shifting CAPEX to OPEX to achieve more predictable IT spending. A hybrid approach allows businesses to quickly deploy and manage services to save time and vital resources.

To learn more about how Hybrid IT can modernize your financial infrastructure, I invite you to follow us on Twitter at @HPE_SMB.

 

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About the Author

TimPeters

VP/GM for HPE ProLiant Rack and Tower Servers and SMB Solutions. Previously VP/GM for HPE Server Software and Enterprise Solutions. Prior to HPE, Tim founded and partnered in technology management to provide strategic and operational expertise to both established and emerging companies. Seventeen years at Dell with scope of responsibility broad and inclusive for managing the company’s single largest P/L of the core product portfolio. Established successful start-up businesses in new product segments. Worked in Asia to consolidate and scale global development and operations while engaging new business partners to create a forward-thinking organization responsible for the long-term horizon in business investments, technology planning and solution development.

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