Under Conway Law, any company is created using systems. Clearly, no one wants their company to be based on slow and expensive systems that are difficult to replace.
With 2020 in mind, there is nothing new in cloud computing – it provides cost reduction and improves collaboration between companies.
No fintech company in 2020 will think about where to place their database. Fintech as an industry is one step ahead in this regard.
If we want to get banks interested in cloud technologies, we need to change tactics. Instead of convincing financial institutions of the advantages and correctness of this solution, it would be better to offer a real way, taking into account all the manageable risks, that will simplify the process of migrating to new infrastructure.
Financial institutions are in no hurry to switch to cloud technologies – why?
First of all, moving obsolete work applications to a new environment costs the organization a lot of money, time and necessary experience, which no one wants to open, especially in a pandemic.
As such, the main obstacle is cost – a short-term expense that creates new business experience and relies heavily on people. Not surprisingly, managers find it difficult to spend money in advance on something that should have a positive impact in the long run.
Nevertheless, the global pandemic has, to some extent, awakened business and facilitated the creation of favorable conditions for migration. Because of the savings made as a result of the remote work regime, the idea of migration is becoming more and more attractive.
In addition, it is important to ensure the security of the bank. The notion that cloud technologies do not provide a sufficient level of security and encryption is fundamentally wrong. More and more people are realizing that the data stored in the private “cloud” can no longer be protected in any other way.
So the perceptions, though slowly desired, are still changing.