Managed server hosting represents a sound investment for financial services firms as they look for ways to manage costs and risks. While companies in the finance sector have long relied on in-house data center facilities, new technologies, an information explosion and security concerns compel them to continually update their IT strategies. Simply building on to current infrastructure in the traditional model is rapidly becoming prohibitively costly.
Equipment obsolescence, evolving software applications, and regulatory pressures can make it easy to pour money into onsite data centers without really getting to the heart of the problem: effective management. With managed server hosting, financial services firms can transform their IT operations models to keep up with the ever-changing digital business landscape.
Managed server hosting eliminates hardware costs
The rise of big data and application-heavy business environments puts pressure on existing hardware. In the traditional onsite data center, the amount of money finance firms had to spend on computing power and network devices was relatively small and stable compared to other organizational costs. Now, hardware and infrastructure concerns are increasingly expensive and unpredictable, wrote Wall Street & Technology contributor Greg MacSweeney.
Unless they outsource, banks and other finance firms run the risk of seriously cutting into profit margins or falling behind the competition. Leading managed server hosting providers can help these companies by supplying servers and network infrastructure.
Managed server hosting helps alleviate costly risks
Compliance is taking on a larger – and costlier – role at financial services firms. Data integrity and security are of vital importance, especially as data loss prevention efforts accelerate. Recent high-profile events like the Target data breach, in which consumer credit card information and other financial data were exposed, create significant trickle-down problems for consumer banking firms.
Managed server hosting can help financial services keep data safe and comply with industry and federal regulations. As Datacenter Dynamics contributor Allan Grody observed, prevention is the only form of risk management that really works. Many firms are unable to manage all of the possible risk factors cost-effectively as they navigate changing markets, trading concerns, and other regular duties. Managed server hosting services offer backup and archiving capabilities that can help keep finance firms compliant, as well as state-of-the-art network monitoring and managed firewalls that proactively identify and eliminate cyber threats.