Cloud Computing: A Revolution Underway?

Banks are increasingly turning to the cloud. What drives their interest?

It’s true that many banks have been exploring the cloud for some time. Managing internal IT has become increasingly complex due to the sheer number of technologies involved. Recruiting a critical mass of experts capable of ensuring system resilience, performance, and compliance can be extremely costly. This is where the cloud offers many advantages! Banks can, for example, multiply their computing and storage capacities on remote servers without worrying about infrastructure costs or maintenance. However, choosing the right type of cloud depends on platforms, applications, and the criticality of the data.

Among the different types of cloud—public, private, hybrid, and multi-cloud—which should be chosen according to deployment strategy?

There’s no one-size-fits-all answer. First, it’s essential to analyze the “current state”—platforms, applications, and data criticality internally. Business objectives must also be taken into account to develop an appropriate cloud strategy in line with regulatory requirements.

In most cases, this leads to a hybrid cloud strategy. For instance, some applications may be hosted on a public cloud, while others reside in a regulated private cloud, depending on costs, regulatory requirements, and data criticality. For example, many banks still prefer to host their core banking system on a private cloud, whereas less critical applications may be placed on a public cloud.

While cloud migration brings many benefits, it also carries risks. How can companies be supported in terms of cybersecurity?

I would say that cybersecurity risk is not the main concern when migrating—partially or fully—to a public cloud. On the contrary, hyperscale cloud providers have massive cybersecurity resources unmatched by most companies. Generally, the risk of cybersecurity incidents is lower in a public cloud or even a private cloud—provided companies are supported by experts to properly configure their cloud resources.

However, one point requires vigilance: it’s important not to become too dependent on a specific cloud provider, as exiting later can be difficult—whether due to budget overruns, legislative changes, or strategic reasons. Therefore, it is crucial to plan an exit strategy before starting cloud migration.

The risk lies more in a “lock-in” issue than in cybersecurity itself.

Any final thoughts on the evolution of cloud adoption in the coming years?

The cloud is becoming an indispensable tool for effective IT management in both regulated and unregulated companies. That said, given certain risks associated with public cloud—such as exit issues or changing legal frameworks—and recent geopolitical crises worldwide, it’s important to carefully choose between public, private, and sovereign cloud options.

The good news: the range of cloud solutions continues to expand. With the right guidance, each bank can eventually find the cloud that best fits its needs, allowing it to focus on its core business while delegating “commodities” to specialized companies, all while benefiting from economies of scale.

We should also not forget the advanced features available in the cloud, such as AI, managed databases, and data analytics tools, to name just a few.