# Banking on the Cloud: 7 Steps to Greater Business Agility
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-09-14
Category: BANKING
Category URL: https://financedigest.com/category/banking
Meta Title: Navigating Cloud Migration in UK Financial Services
Meta Description: Discover how large financial firms are embracing the cloud to enhance agility and reduce costs. Learn key steps for successful cloud migration.
URL: https://financedigest.com/banking-on-the-cloud-7-steps-to-greater-business-agilityhtml

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_By_ _**Brian Murray** , Head of Service Development at IT change specialists_ [_ECS_](http://www.ecs.co.uk/)

The UK financial services sector is in a state of flux. What with the uncertainties around Brexit, a complex and shape-shifting regulatory environment, and the sheer number of challenger banks entering the market, agility is moving to the top of the financial services IT agenda.

For agility read cloud.

![Brian Murray, ECS](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd140917-1-300x225-1736843498931-compressed.jpeg)

Brian Murray, ECS

While banks such as [Metro](https://www.financedigest.com/metro-bank-posts-flat-third-quarter-loan-growth.html "Metro Bank posts flat third-quarter loan growth") Bank have embraced the cloud, the incumbents have historically focused largely on control and cost savings rather than agility. This is because changing operating models is a huge undertaking. It involves making changes that go far beyond changing/adding suppliers, or technology platforms; it’s also about effecting cultural change and establishing a new way of working.

Despite the challenges, changes are afoot. A growing number of large financial services firms with legacy estates are starting to make headway in the cloud, and prioritising [cloud service](https://www.financedigest.com/uk-to-examine-cloud-services-dominated-by-amazon-microsoft-and-google.html "UK to examine cloud services dominated by Amazon, Microsoft and Google") supply for new solutions.

Agreeing on the right [cloud strategy](https://www.financedigest.com/spiralling-azure-costs-dont-necessarily-mean-your-cloud-strategy-is-off-course.html "Spiralling Azure costs don’t necessarily mean your cloud strategy is off course") can be complicated, and is usually about transformation rather than migration.  A laser-like [focus](https://www.financedigest.com/world-bank-scrapping-ease-of-doing-business-index-is-a-reminder-to-focus-on-fundamentals.html "World Bank scrapping Ease of Doing Business Index is a reminder to focus on fundamentals") on the business case should clarify the key strategic goal of the business be it:

- technical agility, to support more [rapid](https://www.financedigest.com/rapidly-changing-fashion-lifestyle-is-expected-to-spur-demand-for-clothes-closets-market.html "Rapidly Changing Fashion Lifestyle Is Expected To Spur Demand For Clothes Closets Market") provision and change;
- commercial agility, from a more modular pay-per-use model; and/or
- reducing the costs from in-house technology hosting.

Here are some recommended steps that can help businesses with legacy [systems manage](https://www.financedigest.com/energy-management-system-market-to-register-a-cagr-of-14-8.html "Energy Management System Market to register a CAGR of 14.8%") migration as part of their cloud journey:

1. **Choose the right partner(s)**

Recognise that comprehensive cloud adoption will take quite a long time to complete, and a cloud supplier’s preferred approach may not be most aligned to your interests. Also, there will be many solutions that turn out to be better suited to more traditional hosting services, so take the time to select the most effective hosting partner(s) as this will never be wasted effort.

2. **Undertake a thorough** [application and service portfolio analysis](https://www.financedigest.com/cold-start-system-market-analysis-size-share-sales-growth-forecast-segment-application-analysis-2021.html "Cold Start System Market Analysis- Size, Share, Sales, Growth, Forecast, Segment, Application Analysis 2021")

This process allows you to identify the [application services](https://www.financedigest.com/service-lifecycle-management-applications-market-to-grow-at-a-cagr-of-6-9.html "Service Lifecycle Management Applications Market to grow at a CAGR of 6.9%") that are the most promising candidates for software-as-a-service (SaaS). It also helps you to:

- accelerate discussions with business users around what changes will happen when;
- root out applications that are ripe for decommissioning, which in turn leads to infrastructure consolidation and [cost savings; and](https://www.financedigest.com/how-to-save-money-as-a-student-during-the-cost-of-living-crisis.html "How to Save Money as a Student During the Cost of Living Crisis")
- ensure rapid business-benefit realisation.

3. **Clarify the interactions between application services**.

This is easily overlooked but is vital from a security, performance and availability perspective. The required [information can be gathered from the portfolio analysis](https://www.financedigest.com/repository-of-analysis-and-information-for-every-facet-of-the-hydroxymethylbutyrate-hmb-supplement-market-2021-2031.html "Repository of Analysis and Information for Every Facet of the Hydroxymethylbutyrate (HMB) Supplement Market 2021 – 2031").

4. **Assess the underlying platforms as potential candidates for platform-as-a-service (PaaS).**

Check the application dependencies so that you know which [applications will be impacted](https://www.financedigest.com/predisposition-biomarkers-market-future-trends-segmentation-strategies-to-boost-growth-applications-with-covid-19-impact-till-2028.html "Predisposition Biomarkers Market Future Trends, Segmentation, Strategies to Boost Growth, Applications with Covid-19 Impact till 2028") by which platform (e.g. databases, middleware, storage, messaging, web services). PaaS migrations, like SaaS (software as a service) migrations, will help to reduce the infrastructure migration requirements and will help on the decommissioning of outdated IT infrastructure too.

5. **Assess the remaining infrastructure.**

Assess the remaining infrastructure to determine what needs to be decommissioned, refreshed, consolidated or migrated directly to either hosting or infrastructure-as-a-service (IaaS) offerings. The migration will be clearer using this approach, and the return on investment will kick in faster.

6. **[Initiate preparatory](https://www.financedigest.com/an-ipo-initial-preparatory-outline-for-an-ipo.html "An IPO (Initial Preparatory Outline) for an IPO!") work streams before migration.**

Carrying out extensive IT change can require a factory-enabled approach, with structured functions established to manage the factory throughputs, align with the existing project portfolio and [support knowledge-enabled decisions around](https://www.financedigest.com/engineering-pipe-hanger-and-support-market-estimates-the-to-expand-at-around-4-8-cagr-from-2021-to-2031.html "Engineering Pipe Hanger and Support Market Estimates The To Expand At Around 4.8% CAGR from 2021 to 2031") each component to be changed. The most effective [solution designs](https://www.financedigest.com/product-design-verification-and-validation-solution-market-2021-present-scenario-and-growth-prospects-2025.html "Product Design Verification And Validation Solution Market 2021 | Present Scenario and Growth Prospects 2025") should be templated in advance, not only in terms of technologies, but also in operating models.

The points above focus on the [service migrations](https://www.financedigest.com/financial-services-industry-blazes-the-trail-for-cloud-migration-post-pandemic.html "Financial services industry blazes the trail for cloud migration post-pandemic"), but effective cloud adoption measures will ensure migration success. A cloud-ready operating model will ensure an effective service integration and [management (SIAM) function; with end-to-end capacity planning, service level management and support practices across all supply chains](https://www.financedigest.com/supply-chain-management-bpo-market-is-thriving-with-rising-latest-trends-2014-2020.html "Supply Chain Management BPO Market Is Thriving With Rising Latest Trends 2014 – 2020").

Perhaps most importantly, the operating model will facilitate people change, through all required restructures and [skills development required for a successful cloud](https://www.financedigest.com/tackling-the-cloud-skills-gap-in-financial-services.html "Tackling the cloud skills gap in financial services") journey.

7. **Ensure the migration framework [covers business](https://www.financedigest.com/business-insurance-what-does-it-cover.html "Business Insurance: What does it cover?") change adoption.**

Regardless of the target state, an IT function can too readily view the end result as simply [technology change](https://www.financedigest.com/how-technology-is-changing-the-game-in-construction.html "How Technology is Changing the Game in Construction"). Technology changes require testing, but process changes may need more careful assessment, as well as business involvement, to support buy-in and ensure the new solutions are [successfully](https://www.financedigest.com/xledgers-long-term-local-support-for-bristol-sport-a-successful-partnership.html "Xledger’s long-term local support for Bristol Sport – a successful partnership") adopted and supported.

Baseline measures will be needed before any initial improvements can be recognised, as well as regular reviews across the cloud [supply chain](https://www.financedigest.com/amazon-introduces-seller-storage-service-to-tackle-supply-chain-woes.html "Amazon introduces seller storage service to tackle supply chain woes").

**Conclusion**

In summary, [laying the right foundations for a more agile future in the cloud involves careful planning](https://www.financedigest.com/ecbs-villeroy-lays-out-plan-for-shrinking-balance-sheet.html "ECB’s Villeroy lays out plan for shrinking balance sheet") and preparation. Done correctly, the result will be a reduction in internal IT costs, and the ability for in-house IT to evolve from a technical support function to a full-blown [business](https://www.financedigest.com/factbox-reaction-to-uks-energy-support-package-for-businesses.html "Factbox-Reaction to UK’s energy support package for businesses") information management service that better supports business goals.

The result is a more nimble business that can move faster to [gain a competitive edge](https://www.financedigest.com/using-cloud-based-communications-to-gain-a-competitive-edge.html "Using cloud-based communications to gain a competitive edge"). Which is why the smart [money is banking](https://www.financedigest.com/digitisation-of-banking-the-impact-of-digital-money.html "Digitisation of Banking: the impact of digital money") on the cloud.


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