PART 7: ?Managing Infrastructure and Environments

In the dynamic realm of banking system implementations, one critical aspect often underestimated is the complexity of managing environments. Time and time again, projects have faced early failures due to oversight in crucial areas. In Part 7 of our Transforming Banking series, we explore key considerations and strategies to navigate the intricate landscape of infrastructure and environments, particularly during the transition from on-premises to cloud.

1.??? Contractual Clarity

One of the first points of potential failure in a project is the lack of well-defined contracts and Service Level Agreements (SLAs) with cloud service providers. Without this solid foundation in project and production environments, organizations may find themselves burdened with high operating costs for many years. It's imperative to remember that vendors are primarily interested in securing the best deal for themselves. Mitigate risk by ensuring contractual clarity and negotiating contracts and SLAs that protect your organization's interests.

2.??? Environment Management at Every Stage

The number of environments required and the frequency of their refreshes or reprovisioning are often underestimated. Projects evolve through several environment stages, including development (or gap analysis), functional testing, data migration, system integration testing, user acceptance testing, performance testing, and production environments. Each stage requires careful planning and management to ensure smooth transitions and minimize disruptions.

3.??? Release Process Synchronization

The synchronization of new functionality and defect fixes is another critical aspect of environment management, especially as projects progress through higher-order environments. It's important to have a clear delivery dashboard that tracks the delivery of deltas and the remediation of defects. This dashboard should also include configurations, parameters, synthetic and migrated data releases, and keep track of the release state of all environments, including the target production environment.

4.??? Cloud Service Provider Selection

When selecting a "cloud native" provider, ensure that they offer Software as a Service (SaaS) and that you have a clear understanding of their operating model and delineation of accountabilities. It's also important to remember that new cloud hosting arrangements could involve vendor IT and Ops teams that may not have experience managing business technology operations like yours. Don’t assume they have an operation model and knowledgeable staff. Do your due diligence!?

5.??? Table Stakes IT Services

Confirm that basic IT services are part of the deal, encompassing lower-order environments. Lack of these services may indicate an automation problem, raising concerns about failover and recovery abilities. Understanding their operating model is crucial, and if in doubt, consider a "ring fenced" dedicated team approach, as managing cloud infrastructure seldom works as a sideline activity.

Conclusion

Implementing banking systems, particularly those transitioning to the cloud, is a complex process. Success hinges on meticulous planning and execution of infrastructure and environments. By considering the points highlighted in this article, organizations can better prepare for this transition and avoid common pitfalls. Remember, the goal is not just to implement a new system, but to do so in a way that enhances operational efficiency, improves service delivery, and ultimately contributes to the organization's success.

What challenges have you encountered in managing environments during banking system implementations, and how did you overcome them? Do you have any additional strategies or considerations for navigating the transition from on-premises to the cloud in the banking industry? Let us know in a comment below!

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