Why are some leading banks migrating to Microsoft Azure?

Author: Charter Global
Published: October 3, 2023

Cloud services, particularly Azure, are chosen as an effective solution to address various business challenges and capitalize on their benefits in creating new business value. Partner with Charter Global, a premier provider of customized IT services for the Banking and Financial Services industry.

Adoption of Azure is driven by several key factors:

Cloud-First Approach for DX: Banks are recognizing that cloud services are pivotal in achieving their digital transformation goals. Cloud computing provides a new paradigm where resources and services can be utilized as needed, reducing operational costs, and enabling rapid responses to market changes.

Common System Infrastructure: To streamline operations and innovation across the group, banks are aiming to establish a common system infrastructure. Azure is chosen as the cloud service for this shared infrastructure due to its features, capabilities, and evolving functionality. Azure’s suitability for running Windows Server and SQL Server, Azure Hybrid Benefit (AHB) for cost-saving, evolving features like support for Linux and virtual networking, and strong security capabilities contribute to many banks’ decisions to adopt Azure. In addition, banks already have Windows-based systems, and it made more sense to adopt a compatible cloud solution that reduced the cost of integration as well as maintenance.

Security and Compliance: The financial industry demands high levels of security and regulatory compliance. Azure’s security features, including support for Windows Server and SQL Server, virtual networking, and authority control, have been evaluated to meet these stringent requirements.

Cloud Migration Initiatives: The shift to Azure and a cloud-first approach is driven by the need for a more comprehensive system infrastructure. The adoption of Azure as the common system infrastructure involves collaboration among various parties and ensures the eventual success of implementations.

Migration Success: It is to be noted that security and ongoing support are important in achieving smooth migrations. Reinforce the security of Azure-based system infrastructure and explore the scope of Azure’s capabilities. Leverage Azure for innovative services, including big data and machine learning, while maintaining a balance between technology adoption and the financial industry’s conservative nature.

Overall, many banks are moving to Microsoft Azure, driven by the need for a robust, secure, and scalable cloud infrastructure that aligns with their digital transformation objectives. The shift aims to enhance agility, reduce costs, and ensure compliance while enabling the bank to adapt effectively to changing market dynamics.

Partner with Charter Global to jointly implement a Digital Transformation using Microsoft Azure, enhancing operational capabilities and securing a competitive advantage within the Banking and Financial Services sector.