As defined by the McKinsey definition of Digital Finance, the digital transformation is “the adoption of financial software and other technologies designed to improve financial service delivery.” The financial industry is adopting these changes to accommodate the rapidly changing world of internet technology. The adoption of these new business models and technologies has been called the Digital Finance Era. This transformation has many contributors, but the primary drivers of the change are the adoption of web-based risk management, measurement of financial risk, and adoption of the client-provider architecture model more commonly referred to as the Business Value Model.
The biggest driver of this big data risk control and measurement initiative is the need to collect, manage, and process much more information about clients and the financial industry as a whole. As a result, legacy computing architectures that were designed for simple data mining and analytical processing are no longer appropriate for the complex problems involved in the Digital Finance Era. Furthermore, traditional computing approaches are simply not designed for the high volume of data that will be generated as a result of the digital transformation. Traditional computing architectures were not designed for high performance, real time computing with large amounts of data or application security. This makes it difficult for organizations in the Financial Services industry to meet their business needs.
The transformation also requires the transformation of IT infrastructure. In order for the Financial Service industry to adopt the new data analytics and business value modeling approaches, they need a powerful and scalable enterprise resource planning (ERP) platform that can handle the volume of data coming into the organization. The transformation also requires the ability to rapidly configure and reconfigure internal systems for the fast collection, analysis, and integration of data. In addition, the ERP architecture must have capabilities to support and monitor the activities of external sub-systems like Sales, IT, Marketing, Finance, and Human Resources. To accomplish these tasks, many in the industry consider solutions that include a virtualization layer on top of the existing ESX server OS.
Virtualization also allows companies to make the most of their server’s capabilities by allowing them to better isolate system resources such as memory, processing, bandwidth, and storage. This enables companies to better manage their physical hardware resources, which will help them trim costs. This is especially important for companies that utilize costly and complex servers and network equipment. The Virtualization technology provides a path for companies to use ESX servers with applications that run on other platforms like Windows, Linux and Apple Mac OS X. Virtualization solutions are also highly useful for companies that do not want to take the chance of installing and configuring their own firewall, or the need for expensive software upgrades. They can instead run their applications through the Virtual Machines (VMs) provided by the ESX Server as well as through a remote browser using Java and HTML.
Another advantage of VDI’s is that they allow companies to create a “virtual workplace,” or to use a workstation within the corporate infrastructure that is dedicated to work. This is a great benefit to smaller companies and independent consultants who need to work from home but don’t want to have to provide their own computers or dedicated phone lines. By using VDI, they can have an “office space” within their own company and still be able to keep running a successful business. Many banks and financial lenders are realizing the benefits of utilizing VDI and are beginning to implement them more commonly. One reason why financial companies use VDI is because they can save money. This is because you won’t have to pay the high price tags for dedicated servers for your financial applications.
The Virtualization technology in this industry has advanced greatly in recent years and has also become more popular. One reason for this is because Citibank is one of the largest financial lending institutions in the country. Citibank was one of the first banks to adopt Virtualization and turn it into an enterprise resource planning (ERP) system. Through this innovation, Citibank is able to save a lot of money by not having to pay for servers, operating systems, or purchasing hardware and software. They also were able to lower the training costs associated with the banking industry.
Many other financial companies have used VDI’s as well. In order to make these innovations work, many companies had to contract with an outside provider. Today, you can use a VDI solution by going to a cloud-based computing company such as Amazon Web Services. By going this route, you can get access to not only the tools that your ERP needs, but also to the IT professionals that will be needed as well.
Another advantage of this new technology is that companies who don’t currently utilize it can get into it at a very low cost. There are also a variety of features that you can choose from. Some of these include application and connectivity management, data migration, asset and workstation management, and application performance and security. In order to take full advantage of the ERP solutions provided by VDI’s, it’s important to begin looking for a provider who can provide you with an all encompassing solution. Look for companies who have experience with all types of VDI’s, whether they are designed for small businesses or larger corporations.