Not unlike most technology, cloud-based digital banking solutions can vary. But it’s those differences that can either enable growth or stifle it in its tracks.
It’s no surprise that cloud-based solutions are all the rage these days; their benefits are difficult to ignore. From flexibility, scalability, and cost-effectiveness, cloud-based solutions offer banks and credit unions a way to compete with large, global financial institutions on any number of levels.
“Cloud-based” is really a catch-all for any solution utilizing a cloud provider to host and maintain a digital banking platform. It’s like saying, “I’d like to buy a computer.” Sure, all computers enable you to perform functions and tasks, but do you want a laptop or a desktop? Do you want a basic one with limited features or one with all the bells and whistles?
You get the point. Not all computers are created equally, and neither are cloud-based digital banking platforms.
Many vendors offering cloud-based solutions blur the lines on what that entails beyond hosting your digital banking platform in the cloud. In other words, they’re selling you a “computer”—one that can do the tasks that you need, but without telling you the make, model, and specifics of just what you’re getting. It’s high time you know precisely what kind of computer you’ll get, or what “cloud-based” really means in application, based on the type of technology stack you choose.
First up…
A computer with boot camp: the hybrid-cloud platform.
A hybrid cloud solution is a type of digital platform that combines the use of both public and private cloud environments. In a hybrid cloud solution, some of the application components or workloads are deployed in a public cloud environment, while others are deployed in a private cloud environment that is typically located on-premises or in a data center. The public and private cloud environments are connected through a secure network, enabling the hybrid solution to leverage the benefits of both cloud models.
There are several reasons why organizations may choose to adopt a hybrid cloud solution. For example, you may have legacy applications that are not easily migrated to the public cloud, or you have data residency or compliance requirements that mandate using a private cloud. A hybrid cloud solution can provide organizations with the flexibility to use the most appropriate cloud environment for each application or workload based on factors such as cost, performance, security, and compliance.
However, some challenges and considerations are associated with using a hybrid cloud solution. For instance, managing and integrating applications across multiple cloud environments can be complex and require specialized skills and tools. Other security and compliance risks may be associated with transferring data between public and private clouds. Also, ensuring consistent data protection and governance policies can be challenging. Finally, managing the costs and optimizing the performance of a hybrid cloud solution can also be complex, requiring careful planning and monitoring.
Like a hybrid-cloud solution that combines both on-premise and cloud infrastructure, a computer that can run both Mac OS and Windows can connect two different operating systems. Both hybrid-cloud solutions and such computers offer the flexibility to run different applications and workloads depending on the user’s specific needs. However, just as running two operating systems on the same computer can cause performance and compatibility issues, using a hybrid-cloud solution can also present data integration, security, and compliance challenges.
An iMac: the cloud-adapted solution.
A cloud-adapted solution is a digital platform originally designed to run on-premises but has been modified or “adapted” to run in the cloud. This type of solution is sometimes called a “lift and shift” solution because the application is lifted from the on-premises environment and shifted to the cloud environment without significant architectural changes.
In a cloud-adapted solution, the application is typically deployed in a virtual machine or container in the cloud environment. It may use cloud services such as storage, networking, and databases. The application may be modified to take advantage of cloud services, but the core architecture and design remain essentially unchanged.
Cloud-adapted solutions can be a good option for organizations that want to move their applications to the cloud quickly and with minimal disruption to their existing architecture. However, this approach may not be the most efficient or cost-effective over the long term, as the application may not be optimized for cloud scalability, resilience, and efficiency. Additionally, cloud-adapted solutions may require more maintenance and management than cloud-native solutions, as they may not have the same degree of automation and self-healing capabilities.
Just as an iMac computer can be adapted to work with cloud services through the installation of additional software, or through the use of cloud-based apps, a cloud-adapted solution is a traditional on-premise solution that has been adapted to work with cloud infrastructure and services. While both the Mac computer and cloud-adapted solutions can work with cloud services, they are not explicitly designed to take full advantage of cloud-native technologies and architectures. They may not offer the same scalability, efficiency, and flexibility as a cloud-native platform.
A MacBook Pro: the cloud-native solution.
Cloud-native platforms provide significant benefits compared to traditional on-premises and cloud-adapted solutions. First and foremost, cloud-native platforms are designed specifically for the cloud environment, enabling them to take full advantage of cloud-native technologies and architectures, such as containerization and microservices. This makes them highly scalable, flexible, and adaptable, with the ability to quickly and easily allocate resources based on demand.
Another critical benefit of cloud-native platforms is their ability to operate efficiently and cost-effectively. They are typically designed to be highly automated, with self-healing capabilities and streamlined management processes that require less maintenance and management overhead compared to traditional solutions. This can help reduce costs, improve operational efficiency, and enable organizations to focus on innovation and value-added activities.
Cloud-native platforms offer improved resilience and reliability, with built-in redundancy and failover mechanisms that ensure high availability and business continuity. They can also help improve security with robust encryption and authentication mechanisms that protect data and applications from unauthorized access or attacks.
Finally, cloud-native platforms are highly portable and can operate across multiple cloud environments, making them an ideal choice for organizations looking to adopt a multi-cloud or hybrid cloud strategy. This can provide organizations with the flexibility to choose the most appropriate cloud environment for each application or workload, based on factors such as performance, cost, and compliance requirements. Overall, cloud-native platforms offer a powerful and flexible foundation for modern digital banking operations, enabling organizations to deliver innovative and customer-centric services with speed, agility, and efficiency.
Like the MacBook Pro is designed from the ground up to work seamlessly with Apple’s operating system and ecosystem, cloud-native platforms are designed to work effortlessly with cloud infrastructure and services, taking full advantage of the latest technologies and architectures. Both the MacBook Pro and cloud-native platforms are highly optimized, efficient, and adaptable, with the ability to deliver superior performance and user experience.
A solution that was born in the cloud.
Are you ready for a digital banking platform that was designed specifically for the cloud? Look no further. While other platforms are partially adapted or retrofitted for the cloud, Lumin Digital’s is 100% cloud-native. We’re the only provider to standardize weekly updates with zero downtime, reducing the time your team spends preparing for and dealing with service interruptions, and increasing the speed at which we help you bring the next great innovation to your customers. Contact us to learn more about how we can illuminate your success.
