# How hybrid cloud computing offers the best of all worlds Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-02-10 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: The Surprising Trends in Cloud Migration: A Hybrid Future Meta Description: Discover the latest trends in cloud migration for the financial sector, from the rise of hybrid cloud strategies to enhanced efficiency and cost-effectiveness. URL: https://financedigest.com/how-hybrid-cloud-computing-offers-the-best-of-all-worldshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1372476155-1736814457747-compressed.jpg) _![image](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/184-1736814457777-compressed.jpg)_ _The trends driving cloud migration today may surprise you. Cloud first has supplanted cloud-only as the leading strategy. Meanwhile, tailored hybrid cloud approaches continue to gain popularity, allowing firms to combine legacy infrastructure with more agile cloud components. This flexibility will be key, particularly in the financial sector, argues **c**_ In the modern corporate landscape, [data has arguably become the most essential](https://www.financedigest.com/what-is-a-virtual-data-room-unveil-the-essential-information-here.html "What is a Virtual Data Room? Unveil the Essential Information Here!") asset to maintain, analyse, and keep secure. That means most [big businesses](https://www.financedigest.com/smishing-is-a-new-virus-plaguing-big-business-conversational-commerce-to-the-rescue.html "‘Smishing’ is a new ‘virus’ plaguing big business – Conversational Commerce to the rescue!") manage data centres 24/7 as a critical data platform. However, recent years have seen the rise of cloud computing, with many companies migrating core [business services to public cloud](https://www.financedigest.com/7-ways-cloud-technology-can-transform-business-finances.html "7 ways cloud technology can transform business finances") hyperscalers, such as Microsoft Azure, AWS, and Google Cloud. And yet, as part of this transition to the cloud, we are also beginning to see other trends emerge. **The rise of the hybrid approach** The idea behind a hybrid cloud strategy is to get the best of both worlds: combining the scalability of public cloud options with the customisation and [control associated with privately hosted cloud platforms](https://www.financedigest.com/national-world-launches-new-ad-manager-platform-powered-by-danads-empowering-businesses-to-take-control-of-their-advertising.html "National World launches new ad manager platform, powered by DanAds, empowering businesses to take control of their advertising"). And this approach is gaining in popularity, Gartner predicts that [85%](https://www.gartner.com/smarterwithgartner/the-everywhere-enterprise-a-gartner-qa-with-david-cappuccio#:~:text=Gartner%20predicts%20that%20by%202025,compared%20with%2020%25%20in%202020.) of infrastructure strategies will integrate on-premise, co-lo, cloud and edge delivery alternatives by 2025, in comparison to the mere 20% investing in such an approach in 2020. The reason behind this popularity is that a hybrid approach offers enhanced efficiency, lower costs and improved scalability, which together provide increased business agility. On the other hand, [companies that depend only on public cloud](https://www.financedigest.com/green-cloud-one-way-your-company-can-commit-to-sustainability.html "Green Cloud: one way your company can commit to sustainability") solutions risk overspending due to ineffective tracking of resource usage. Costs linked to scaling [cloud services](https://www.financedigest.com/tomorrows-world-how-cloud-computing-will-impact-the-financial-services-sector-in-2016.html "TOMORROW’S WORLD: HOW CLOUD COMPUTING WILL IMPACT THE FINANCIAL SERVICES SECTOR IN 2016") from scratch are also rising fast and becoming difficult to sustain. By not [locking themselves into limited on-premise infrastructure or the potentially unknown costs](https://www.financedigest.com/dutch-telecom-kpn-locks-in-2023-targets-helped-by-cost-controls.html "Dutch telecom KPN locks in 2023 targets helped by cost controls") of a hyperscale approach, IT managers introduce much more freedom to create personalised data solutions that cherry-pick the best elements of public, private and in-house models. This leads to increased cost-effectiveness, improved agility and the ability to build a robust architecture while minimising the [disruption to business](https://www.financedigest.com/german-businesses-expect-only-mild-recession-as-disruptions-ease.html "German businesses expect only mild recession as disruptions ease") operations. **The implications for the** [financial sector](https://www.financedigest.com/how-can-the-financial-sector-safely-use-the-iot.html "How can the financial sector safely use the IoT?") There are many benefits to [finance in using hybrid cloud](https://www.financedigest.com/why-finance-professionals-must-bank-on-a-journey-to-the-cloud.html "Why finance professionals must bank on a journey to the cloud") – for example, easy integration between finance applications, secure data sharing, meeting compliance requirements, and collaboration across locations. It also allows for the ongoing use of valuable legacy platforms. However, there are many challenges data [managers must](https://www.financedigest.com/managing-mobility-in-the-enterprise-must-have-consideration.html "Managing mobility in the enterprise must have consideration") be aware of: - **Security** Security is a priority concern for every [business but is particularly important](https://www.financedigest.com/the-importance-of-property-care-looking-after-your-business.html "The Importance of Property Care: Looking After Your Business") for companies working in financial services. The ‘always on’ style favoured by cloud providers unfortunately also provides a critical attack surface for DDOS attacks, ransomware and many other [cyber threats](https://www.financedigest.com/cyber-threats-for-finance-organisations-to-watch-in-2023.html "Cyber threats for finance organisations to watch in 2023") which are growing in volume and methodology at a startling pace. [Staying one step ahead](https://www.financedigest.com/staying-ahead-of-risk-this-black-friday.html "Staying Ahead of Risk This Black Friday") of bad actors by integrating robust inbuilt security, including detailed notifications, reporting and dashboards is therefore the best course of action. Companies should always begin by assessing the current threat levels before deploying to the [cloud to ensure defences are secure](https://www.financedigest.com/cloud-security-and-the-department-of-go.html "Cloud security and the ‘department of go’"). It is also [important to consider a multi-level approach](https://www.financedigest.com/the-importance-of-a-proactive-and-collaborative-approach-to-reducing-contactless-fraud.html "THE IMPORTANCE OF A PROACTIVE AND COLLABORATIVE APPROACH TO REDUCING CONTACTLESS FRAUD") to security which enables data and users to be classified according to hierarchical security levels. - **Cost** Getting to grips with the cost ramifications linked to any potential hybrid approach is key. Unclear ownership and governance can lead to badly calculated public cloud resource utilisation, which in turn leads to costly resource sprawl. To avoid this, organisations need to effectively track, analyse and monitor resource usage from the outset. Ensure that potential cloud partners can provide a transparent TCO calculation before [signing any contract](https://www.financedigest.com/axion-swiss-bank-and-avaloq-sign-long-term-contract-for-bpo-services.html "Axion Swiss Bank and Avaloq sign long-term contract for BPO services"). This should include detailed [financial planning and predictable cost](https://www.financedigest.com/how-much-does-cloud-based-financial-software-cost.html "How Much Does Cloud-based Financial Software Cost?") models. Real-time [analytics and access to relevant data will optimise cloud](https://www.financedigest.com/oracle-offers-its-mysql-heatwave-database-and-analytics-on-amazons-cloud.html "Oracle offers its MySQL HeatWave database and analytics on Amazon’s cloud") usage on a needs-basis, allowing teams to allocate and monitor ownership for each project while maintaining measurable KPIs and regular reporting. From a [financial services](https://www.financedigest.com/how-financial-services-are-overhauling-security-to-defend-against-spoofing-scams.html "How financial services are overhauling security to defend against spoofing scams") perspective, such transparency is key. - **Hosting the infrastructure** Deciding where to host your cloud platform will shape how much control you will have over its design, deployment and operation. If it is outsourced, make sure your potential cloud partner shares your approach to performance and reliability. A service model may well also [improve security and reduce the burden on often overstretched internal teams](https://www.financedigest.com/improving-your-it-team-in-four-simple-steps.html "Improving your IT team in four simple steps"). Although many companies have well-resourced management teams that ensure systems run seamlessly, others prioritise areas such as cloud-native development. Either way, poor decisions about IT and [data management can become a primary obstacle to business growth](https://www.financedigest.com/bridge-the-gaps-in-big-data-and-cross-into-a-world-of-growth.html "Bridge the gaps in Big Data – and cross into a world of growth"). Bear in mind that the option of advanced virtualised servers and storage make systems easy to run, wherever they might be hosted. **The rise of financial department involvement** Recent research suggests that cloud applications are becoming less dependent on the IT department and, instead finance functions are taking on more responsibility – and budget – for using cloud in the way that works best for their specialist area. This is a trend that is gaining momentum, with 24% of respondents indicating that accounting and [finance are taking a proactive role in cloud](https://www.financedigest.com/the-benefits-of-adopting-cloud-technology-in-the-finance-industry.html "The benefits of adopting cloud technology in the finance industry") management. We can hope that this [growth in involvement leads](https://www.financedigest.com/liverpool-shines-as-one-of-uks-leading-ladies-for-house-price-growth.html "Liverpool shines as one of UK’s leading ladies for house price growth") to more fully rounded approaches being developed. Ultimately, it is all part of an ongoing process, not just a single one-off decision. IT [Managers and service providers](https://www.financedigest.com/newly-launched-quintessential-to-provide-prestige-living-management-platform-for-prs.html "Newly launched Quintessential to provide ‘prestige living’ management platform for PRS") alike must regularly review their architecture to ensure maximum efficiency is always top of the agenda. Hybrid solutions are best placed here because they can be continually monitored and modified to accommodate changing [business demands across](https://www.financedigest.com/fintechs-support-of-ukraines-digital-businesses-can-be-used-as-blueprint-across-the-world.html "Fintech’s support of Ukraine’s digital businesses can be used as blueprint across the world") multiple project lifecycles. This ensures the right capacity at the right time. So, it’s not about a simple [migration to the cloud](https://www.financedigest.com/a-cloud-migration-guide-for-financial-institutions.html "A Cloud Migration Guide for Financial Institutions"), instead, it is the connection of several clouds in the most efficient configuration. By adhering to a clear and well-understood business model, taking the considerations we looked at earlier into account, [organisations will be able to design and deploy a hybrid cloud](https://www.financedigest.com/embracing-cloud-computing-how-and-why-organisations-are-set-to-invest-more-in-cloud-computing-in-2023.html "Embracing Cloud Computing: How and why organisations are set to invest more in cloud computing in 2023") strategy that will help them achieve their objective today and many years hence. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---