The Pros and Cons of Cloud Data Warehousing in Financial Services

Practical Tips for Data Warehousing in the Public Cloud 

It’s well known that tremendous advantages can be gained by financial services firms through the intelligent deployment and application of data. In fact, data has been called the “new oil,” and it’s clear that the utilization of advanced analytics and tools such as machine learning (ML) and artificial intelligence (AI) will drive success in the 21st-century enterprise much as crude oil did for firms in the 20th century.

However, the successful implementation of new, public cloud-based data management solutions to take advantage of these opportunities is not always a simple task. It pays to consider both the pros and cons for such efforts before embarking on the transformation journey. Here are a few specific items from our experience that will be useful as your organization considers the opportunity.

Key Considerations for Public Cloud Deployment

Our recent whitepaper, A Guide to Gaining The Advantage Through Data Warehousing, takes a comprehensive look at all of the aspects to consider as banks and others evaluate the opportunites available for data in the public cloud, including outcomes, primary drivers, best practices, and pros & cons. Here are several considerations in the latter category that illuminate areas of interest will help your organization build confidence in the decision:

Pros:

  • Simplicity: The implementation of a cloud-based data management solutions offers the opportunity to tackle the costly complexity that arises from decades of ad-hoc data policy. A reset on data structure and management by the enterprise promises to deliver new efficiencies.
  • Cost optimization: Cost reduction is a foundational driver for success in the cloud, but that doesn’t tell the whole story. The successful deployment to the cloud also allows for the rationalization of resources as well as the opportunity to right-fit solutions to the issues that they address. 
  • Security: Public perception is that public cloud brings with it increased security risks, but a well-conceived and executed plan will actually enhance rather than detract from the overall security profile of the enterprise.

Cons

  • Data residency: In certain cases, regulations require that data be held in a specific geographic location. An obvious solution is to retain on-premise data storage capabilities, but it is also usually possible for public cloud solutions to conform to geo-based storage requirements.
  • Cost management: There is a great promise for lower costs with public cloud, but these opportunities are not always realized. Care must be taken to develop and enforce strict cost protocols in order to actually achieve potential gains.
  • Project complexity: The greater the possible rewards from data management rationalization, the greater the complexity of the task at hand. The temptation to go for a home run right off the bat is to be avoided in favor of smaller, time-scoped projects with clear, short-term objectives to begin.

Getting in Front of Changing Technology

We are living in the age of data and public cloud is in many ways the best platform to capture the full potential of modern data techniques. However, the opportunity is a complex one, making it essential for companies to take the time and deploy the necessary resources as they address the changes needed to move forward. In the long run, it pays to have an honest conversation about both the pros and cons around modern data warehousing. The Maven Wave white paper, A Guide to Gaining The Advantage Through Data Warehousing, takes a complete look at this journey and also addresses a holistic view of the critical areas that you should consider. Download your copy today.

For further information, please stream our webinar, “Unlocking Competitive Advantage in Financial Services Using Data”.

Companies seeking to accelerate performance rely on Maven Wave for innovation-driven digital transformation. Maven Wave delivers strategy-led, results-driven business solutions powered by cloud computing. To learn more, contact us now.

About the Author

Kylie McKee
Kylie McKee is a Content Marketing Strategist at Maven Wave with more than eight years of tech industry experience and five years of content marketing experience. Prior to joining the Maven Wave team, Kylie worked as a Content Marketing Specialist for WebPT, Inc. and earned an Associate in Applied Science in Motion Picture, Television, and New Media Production with a CCL in Screenwriting from Scottsdale Community College.
December 11th, 2019
FINANCIAL SERVICES

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2020-03-13T09:19:07-05:00