Multicloud friction shouldn’t be the status quo
In 2026, the global datasphere will generate 221ZB of data. The majority of it, or 155ZB, will come from enterprises.
For the financial services industry—which amasses significant amounts of complex data related to risk, finance, regulations, and customer information—this data is subject to strict storage and access policies and regulations. Because this sector operates under unique demands and circumstances, it is very challenging to both manage and derive optimal business value from this data.
Grappling with rapid, unplanned innovation
As if exponential data growth isn’t challenging enough to manage, with the onset of the pandemic, the financial services industry was among those forced to accelerate adoption of new technologies in order to adapt to shifting expectations and needs of stakeholders, remote and hybrid work, supply chain disruptions, and more. As a result, the industry saw financial regulators and industry oversight boards push financial institutions into using multiple clouds to best meet their changing data storage and management needs.
This shift can be a significant driver of innovation. About 30% of multicloud-savvy companies now use four or more cloud infrastructure providers, with that number set to more than double in two years, according to our research. It has also created inevitable growing pains. Communication among various clouds is a challenge, resulting in issues such as data lock-in, which ultimately slows down innovation and impedes data’s business value. There is also great concern over data retention and data egress costs, which further limit the ability to tap data’s potential. The good news is, fintech companies can take specific steps to achieve greater multicloud freedom.
Multicloud freedom and its business benefits
Multicloud freedom is the ability for data workloads to be migrated on and off clouds, and among different clouds, in an on-demand, frictionless manner. It is the ability to say “no” to the friction that slows down or siloes data and obstructs its insights. Multicloud freedom unlocks a more harmonious ecosystem that enables data-driven innovation without the common data access penalties and unpredictable bills. Those who are able to proficiently operate in a multicloud environment are equipped to unleash the full potential of their data.
Companies that take deliberate steps to tightly control data costs and to accelerate innovation in the multicloud are most multicloud-mature when it comes to business outcomes. This means that the greater the multicloud maturity level, the better the business rewards.
- Companies that are most adept at navigating the multicloud in terms of costs and innovation are 5.3 times more likely than their peers to beat revenue goals by 10%.
- Likewise, organisations that score high on multicloud maturity are 6.3 times more likely to go to market months or even quarters ahead of their competition.
- Companies identified as mature are three times more likely to report their organisation is in a very strong business position compared to their less multicloud mature counterparts.
- They are also three times more likely to expect their companies’ valuation to increase fivefold over the next three years.
A healthy business strategy must include an effective data management plan. Organisations that put data at the core of what they do see invaluable business advantages over their competitors. Multicloud-mature organisations practice data-centric strategies such as choosing storage services that do not slow down data access or movement with egress fees.
Reliance on various cloud providers requires companies to double down on security and resiliency to minimise weak links. However, with a fluent multicloud strategy, these companies can operate knowing they are more compliant and secure. This is a significant differentiator for financial service organisations with access to confidential and sensitive information.
How to level up your multicloud maturity
Fintech organisations can deploy a number of tactics to move them further along the scale of multicloud maturity.
Leading companies are 12 times as likely to use predictive third-party cloud cost software tools to measure and anticipate the costs of cloud resources for every deployment decision. The trick leaders deploy is that they use these tools consistently and always.
In addition, organisations should consider deployment criteria. Prior to deploying applications, companies need to evaluate multiple requirements—such as performance, availability, data mobility, API, and user network bandwidth. That way, they can ensure the application will deliver the expected user experience.
Once applications are up and running, IT teams should continue to monitor the environment to ensure that the requirements or capabilities do not change over time.From there, they can prioritise investment in the right cloud management tools and in training their staff to use them.
Investing in automation tools, visibility tools, and storage platforms that are cross-environment compatible will lead to stronger business outcomes. Comprehensive visibility across a multicloud environment is paramount, and a staff that understands their companies’ deployments is critical.
Last but not least, companies should automate security operations as much as possible. The most multicloud-mature organisations automate more than twice as many functions—such as monitoring data flows, the provisioning and updating of end-user access permissions, the protection of data, and the enforcement of data security—than less multicloud-mature organisations on average. Reduction of manual tasks relieves personnel of additional burden, allowing them to focus on more urgent or critical thinking-requiring tasks.
Freer data means freer innovation
Overall, companies that are more mature in their multicloud management see greatly improved valuations, faster time to market, and the ability to beat their revenue goals. What companies do with their data is vital to data’s business value, as well as company valuations.
Organisations that successfully navigate multicloud complexity are able to innovate quickly and efficiently while simplifying their business operations. Benefits include a better customer experience, lower costs, and scalability.