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sense from a cost, scalability and management perspective. At the same time, they are keeping complex legacy applications or lower cost on-premise workloads where they are.
Critical banking infrastructures, especially systems with strict latency, regulatory or security requirements, still benefit from the control and predictability of on-premise data centres in some cases.
While cloud will continue to expand and add functionality to ease migration for more and more applications, hybrid models remain essential for balancing innovation with operational resilience in tier 1 financial services institutions.
Barath Narayanan: While cloud computing fosters agility and innovation, traditional data centres remain vital for financial services, especially for mission-critical tasks like high-frequency trading and core banking systems that necessitate lowlatency, high-security environments.
Maintaining private infrastructure can also be cost-effective for highvolume transactions or specialised workloads.
However, the cloud will continue to expand its footprint, particularly for non-core services, and offer new opportunities for innovation, operational efficiency and scalability in the financial sector.
Hybrid models are expected to be the preferred strategy,
“ The future seems to be a mix of both worlds: cloud for flexibility and scalability, alongside on-premises or private data centres for critical and sensitive functions”
BARATH NARAYANAN, GLOBAL BFSI AND EUROPE GEO HEAD, PERSISTENT SYSTEMS
addressing legacy systems, regulatory compliance and data sovereignty issues.
Financial institutions can leverage cloud computing for analytics, customer applications and innovation while maintaining sensitive and highrisk operations on-premise.
Regulatory requirements further reinforce the need for this balance, ensuring data control and operational resilience.
The future seems to be a mix of both worlds: cloud for flexibility and scalability, alongside on-premises or private data centres for critical and sensitive functions, creating a more adaptive and secure financial ecosystem.
98 April 2025