Cloud migration comprises migrating a company’s digital assets, services, databases, IT resources, and applications to the cloud, either entirely or partly. It can also involve moving between clouds, and the cloud migration framework allows you to access transferred data behind the firewall.
Gartner’s research shows that more than a third of organizations view cloud investments as one of their top three investment priorities, affecting market offerings. Their recent post-COVID data shows that 70% of companies using cloud services intend to increase their investment in the cloud due to the unprecedented disruption caused by COVID-19. Gartner forecasts a 28% increase in revenue in 2022 thanks to private cloud migration.
Why Digital Payment Applications Are Going to the Cloud
Simply put, cloud computing is a technology in which cloud service providers rent out computing resources over the Internet. These resources include cloud servers, storage, data networks, software, and storage systems.
The volume of data generated by businesses is growing at an unprecedented rate. In 2022, businesses created more than 1.7MB of data per second. The annual volume of data came in at 64 zettabytes, which was twice as much as in 2018. Thus, by 2025, the global data volume will exceed 180 zettabytes. To be able to process the growing volume of data and store it securely, businesses rely on the cloud. This is why, in 2020 alone, more than 50% of fintech businesses moved to the cloud.
The recent pandemic has increased the popularity and value of cloud computing for businesses since it allows employees to work freely from anywhere worldwide. There is no need to install any additional software on employees’ computers since everything they need is already available on the cloud, and they just need to log in.
Financial institutions working on digital payment applications can also benefit from cloud technologies, but many seem in no hurry. A large number of businesses are still testing the waters. Businesses are very cautious about the cloud because they don’t have a firm belief in cloud security and lack an understanding of how to manage the cloud appropriately. Businesses still rely on their on-premise IT infrastructure. However, there is a consensus that a multi-cloud architecture can easily improve performance (62%) and reduce costs (40%).
Advantages of Cloud Migration Framework for Payments
As a result, technology allows for more innovative and optimized business models in the payments industry. The use of a cloud-based platform increases payment growth in various ways.
Businesses can better manage their data.
Digital payment applications collect a vast amount of data. Cloud computing allows data to be collected in a central repository, making data analysis much easier. Thus businesses get a clear understanding of their position in the market. This makes it easier to follow customer information and assess and predict risks.
When it comes to traditional infrastructure, you have computers connected to local servers. However, in most cases, these infrastructures have a limited storage capacity. When the storage is complete, you need to install additional hardware, which can quickly become very expensive. When we consider the cloud, as the data volume grows, so does the cloud infrastructure. You don’t need to buy additional computers; just request the cloud service provider to expand the service package.
Scalability
Organizations understand the need for cloud infrastructure, but what will it require in the future? Businesses will need more computing power as they grow. Firms operating in volatile markets benefit significantly from the cloud. Utilize private cloud migration services to scale your IT infrastructure’s operating and storage requirements in response to changing circumstances.
Broader Geographic Distribution
The availability of cloud infrastructure and platform services (IaaS and PaaS) worldwide enables applications to be rapidly and cost-effectively deployed to different geographical locations.
Increased Application Availability
For mission-critical applications, high availability (HA) is frequently required. Cloud computing service companies like Microsoft Azure promise 99.99% uptime and may often exceed 99.999999%.
Efficiency & Rapid Innovation
Cloud computing infrastructure can reduce, allowing resources to transfer to faster market introduction of innovative products and services. Payment firms’ productivity and efficiency are boosted by centralized data management and quick processing, freeing attention from IT challenges and innovation and focusing on their core business.
According to the most recent McKinsey analysis of the cloud migration framework, encouraging innovation accounts for 75% of the cloud’s expected value.
Technical Flexibility
Customers can choose from various services, making it significantly simpler to accelerate their digital ambitions.
Security Enhancements
Customers can safeguard their data, applications, and infrastructure with built-in security services.
Financial companies can save in the cloud.
The cloud computing technologies save the money for fintech businesses:
- Companies do not require upgrading local servers and paying for maintenance staff and electricity consumption but use the additional resources for new business ideas.
- Developing and deploying new digital payment applications requires less time and money.
- Businesses pay cloud service providers for the capacity used on a pay-as-you-go model, which means they only need to pay for active server hours.
In Summary
Private cloud migration and prioritizing cloud computing are expected to lead to many more cloud services. With business continuity a primary concern during the epidemic, the cloud is critical for companies that wish to deal with unpredictability and reinvent themselves. Cloud services also increase employee productivity, and employees devote less time to debugging their IT infrastructure and more time to vital duties.
