As I explained in my previous blog post, we are in the midst of a Third Industrial Revolution, which is driving huge changes in the way we live and work.
Enabled by the technological rise of computing, communications and the Internet, this latest disruptive period presents a range of challenges and opportunities for financial service organizations. Today, we’re going to delve into one of them: The Cloud.
Just as the rest of the world is riding a third wave of innovation, so is the data center. First, we had an era of servers dedicated to a particular workload or a specific department. This gave way to virtualized servers - which allowed infrastructures to be shared and hardware or software to be decoupled. Subsequently, this pushed us into what we presently see today - a major focus on rapid, agile and efficient service delivery through the cloud.
The impact of this revolution can clearly be felt outside the server room. Business leaders now want their information and services to be delivered as quickly as possible. Getting results in a timespan of months is no longer an option; it’s got to be done in minutes. Unfortunately this is easier said than done. For example, I attended the SIBOS 2014 conference in Boston in September, where I learned that it’s estimated that about 85% of a bank’s resources are focused on running the bank, while only 15% is used on changing and innovating the bank. Wouldn’t it be nice if that ratio was the other way around?
If you want to achieve that re-balancing act, you need to look at minimizing time, cost and labor. Simultaneously, agility, automation and elasticity needs to increase across the business. Cloud can help with this – whether it’s in public, private or hybrid form – it can truly accelerate your digital transformation by shifting investments to where it’s needed most.
In the digital service economy, a key limiter for many financial institutions is their data center infrastructure. Years of having each business unit or product team manage its own sales, marketing, even P&L, can often result in highly fragmented IT environments and data repositories, not to mention duplicated effort for employees and a confusing experience for the customer. But cloud can enable digital transformation by removing legacy architecture and IT silos within the bank, in turn boosting operational efficiency, customer engagement, compliance and risk management.
I’m excited by the work that Intel is doing to meet the challenges of our customers in the financial service industry. Our strategy of re-envisioning the data center revolves around Software Defined Infrastructure (SDI). Essentially this means that users have control over a pool (or pools) of resources that may include server, network, and storage – all managed by orchestration software that uses whichever hardware is available. This approach is simplified, elastic, and built on open industry standards. We believe it will have a highly disruptive effect on the way enterprises think about defining, building, running and managing data centers.
The cloud is just one element of a successful revolutionary enterprise though. In my next post, I’ll be looking at how financial services should use analytics to pull deeper insights from their data resources.
Let's continue the conversation on Twitter: @blalockm
Global Sales Director
Financial Services Industry, Intel
This is the second installment of the Tech & Finance blog series.
Click here to view: blog #3
To view more posts within the series click here: Tech & Finance Series