Public cloud computing is growing in popularity among investment management firms. In the past, firms embraced cloud computing technology via the private cloud methodology due to its inherent security features and service and support model. Now, with technological advancements enhancing security, investment management firms are embracing the public cloud model. Continue reading to learn why the investment industry has warmed up to public cloud computing.
Agility, Flexibility and Scalability
The public cloud's flexibility, agility and scalability make it an ideal option for fast-growing or evolving investment firms. The ability to add or remove cloud computing resources as your business needs evolve provides flexibility (not to mention cost savings, but we'll get to that later). This also allows firms to deploy new applications, solutions or technologies in a timely manner and with greater ease.
Testing & Development
When it comes to testing and development, the public cloud has an edge over private cloud. In the past, 'dev test' environments require dedicated infrastructures and significant resources, which can force firms to invest in costly hardware. Additionally, test environments that are underutilized create cost inefficiencies. The public cloud's 'pay-as-you-go' model allows firms to easily set up testing and development environments without the expensive hardware investment and without the fear of underutilizing the environment.
When it comes to the public cloud, the IT department isn't responsible for managing the cloud hosting solution. The public cloud service provider is responsible for maintenance and management of the ecosystem that stores your data. This increases efficiencies within your IT department by saving money on costly updates and maintenance as well as freeing up time within your IT department.
Again, in the past, the investment industry preferred the private cloud for its inherent security features. While the public cloud isn't considered secure on its own, adding the appropriate layers of security in your public cloud strategy will adequately safeguard your firm. Employing strict access controls and implementing security practices can help prevent and detect intrusions and maintain the safety of sensitive data and assets.
This is a tricky one, as cost is a significant factor in the decision-making process. While the public cloud itself is generally less expensive per user, your firm will still need to implement the security measures above at an additional cost. The real cost savings come with the 'pay-as-you-go' model that accompanies the public cloud. Because you're only paying for what you're using, you're creating cost efficiencies for your firm.
As always, when choosing a service provider or vendor, firms should look for a partner with experience in the financial space, a proven strategy, experience in the investment space, and depth in quality of staff.