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How Fintech Business Can Choose A cloud services provider?

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What are cloud services – A short reminder

A cloud service provider is a third-party company that sells a cloud-based platform, infrastructure, application, or storage service from another company. In the same way that a person would pay for electricity or gas, businesses pay for the cloud services they use. Pay-per-use isn't the only thing that cloud service providers offer. They also offer a lot of other benefits to businesses. Scalability and flexibility can be gained by not having to deal with the physical limitations of on-premises servers, multiple data centers with multiple redundancies, customizing servers to your liking, and responsive load balancing that can quickly adapt to changes in demand. Though businesses should also think about the security risks of storing information in the cloud to make sure that industry-recommended access and compliance management configurations and practices are used and followed. Cloud computing lets you access the power of virtual machines powered by machines beyond your imagination that can be shared with thousands of co-workers.

In the case of huge cloud powered systems, for example FinTechs and banking software, it means that users don’t need powerful machines to use applications and data can be accessed seamlessly. In other words: moving workloads to the cloud solves all of the problems related with sticking to legacy systems.

By conducting a SWOT analysis, Fintech selects a cloud service provider

Fintech is an acronym for “financial technology.” In order to select a cloud service provider, Weaknesses (SWOT), opportunities (SWOT), threats (SWOT) are considered. In many firms, it’s a beneficial tool for strategic planning and management. Building strategies for the company to remain competitive in the market is a great use of it. Organizations can use this technique to identify their current resources, capabilities, weaknesses, and opportunities and threats in the market. If you’re looking for a strategic planning framework, this is one of the most popular options. It aids in the identification of organizational and environmental influences on a decision. Before developing any business plan, an organization’s position in the market and the primary elements influencing its competitiveness are analyzed.

Fintech SWOT analysis of a Cloud Services Provider can be divided into two main categories: internal and external. External elements, including opportunities and dangers, are included in the external dimension, which incorporates all the things that potentially affect the firm.

Analysis’s various components

Fintech as part of the process of selecting a Cloud Services Provider SWOT analysis

There are four areas that are further separated into two dimensions, namely internal and external variables. An organization’s strengths and weaknesses are identified through an assessment of the external environment’s elements, while its opportunities and dangers are identified through an assessment of the external environment’s elements. Using SWOT, it is possible to assess how an organization’s resources and capabilities stack up against those of its competitors.

Choosing a Cloud Service Provider: A SWOT Analysis in Fintech

A Cloud Services Provider Strength in the Fintech Sector

With strength, an object or person becomes more valuable, unique, and advantageous when contrasted to its peers. Organizational strengths and weaknesses are explored in this section of SWOT to provide an organization an advantage over its competitors. Defining what makes an organization more efficient and effective than its rivals is the purpose of this section of the document.

One of the most significant aspects of a company’s capacity to operate effectively lies in its ability to command or excel in certain areas. When a business has a comparative advantage over its competitors, it may meet the needs of the market by providing a service or product that is superior to the competition.

Problems with Fintech’s Selection of a Cloud Service Provider

A company’s capabilities and resources are poor or insufficient if they are compared to those of competitors in the marketplace. To put it another way, it refers to areas where the company may use some improvement in order to remain competitive. It is because of these factors that the organization’s overall performance is badly impacted.

These are the things a company lacks and does poorly in compared to other businesses in the same market operating at the same degree of expertise. Resources, competencies, and skills are severely limited, which has a significant impact on an organization’s ability to function effectively. Weaknesses might arise from a company’s management ability, facilities, financial resources, marketing skills, and a lackluster brand image.

There are numerous advantages to selecting a cloud services provider in the financial technology industry

An advantage and a driving factor for a company are opportunity and opportunity. In order to achieve its objectives, the organization needs to find a convenient time or place in the environment. Positive effects on the organization’s growth can be expected from this factor. It is a state that exists in the external environment that allows the organization to take advantage of its strengths and help overcome its deficiencies and neutralize the threats inherent in the environment.

Security Concerns When Choosing a Cloud Services Provider

Fintech Finding a Cloud Services Provider

Threats are the obstacles to an action being carried out. In the current atmosphere, it’s difficult for the organization to meet its stated objectives. Organizational survival and dominance are threatened due to environmental changes that have taken place in the near or far future, and this is bad for business since it makes it difficult for the organization to keep its current status and position.

All environmental elements are considered a threat to an organization, which could have a negative impact on the organization’s efficiency and effectiveness.

However, it comes with some restrictions. Financial technology in-depth analysis or research that could lead to a firm conclusion is not provided by a SWOT analysis of Cloud Services Providers, which is merely one stage in the business planning process. In addition to this, it just covers the topics that are definite and does not prioritize them. In addition, it does not offer any solutions or other options for consideration. Despite its effectiveness as a framework, SWOT does not give the organization precise guidance on how to identify the most important components of their business strategy. How well the manager prioritizes and determines what’s most important will have a big impact on the success of the project. SWOT analysis also has the drawback of giving equal weight to all factors, regardless of their importance or impact.

Cloud service providers comparison

In terms of native compatibility and cloud computing services, Microsoft Azure offered the most options for both Windows and Linux operating systems. As a result, Microsoft Azure receives the highest possible rating of 4 stars. With a multiplier of 4, accessibility is the most important factor to consider when choosing a cloud solution because it indicates how simple it is for customers to use it. If you’re looking for a flexible cloud platform, Amazon Web Services has been rated the best by Forrester Wave for the fourth quarter of 2014. As a result, Amazon Web Services receives the highest possible rating of 4 stars. When it comes to cloud computing security, it has been identified as one of the most important issues in 2016. As a result, the security factor has been increased by three. Availability, data integrity, and cloud security were among the most important issues for Fintech in 2017. Amazon Web Services has the most security features of the top three candidates, slightly more than Google and much more than Microsoft. The highest possible score was awarded to AWS, resulting in a score of 4.

Top 10 cloud service providers

Cloud services provider companies

  1.     Microsoft cloud services provider 
  2.     Amazon
  3.     IBM
  4.     Salesforce  
  5.     Google Cloud
  6.     SAP
  7.     Oracle
  8.     ServiceNow
  9.     Workday
  10. Snowflake

Amazon Services as Cloud Services Provider

With a monthly fee of $1638 for Fintech services, Amazon Web Services is considered the most cost-effective option in top 10 cloud computing companies in the world. However, despite its low cost per month, Amazon Web Services (AWS) offers a lot more than other providers in terms of storage space, competitive services, and processing capacity. Additionally, there are no long-term contracts and simply billing for the services that are actually used, rather than a set charge. Additional security features are slightly more expensive than those offered by Microsoft and Google. AWS provides technical assistance that is geared for developers (for future needs). AWS is rated the best in the industry. As a result of these factors, Amazon Web Services (AWS) obtains the highest possible rating.

What are the requirements of cloud service providers

The provider of the cloud environment should be multi-tenant-enabled, providing secure logical separation between clients, and allowing them to have access only to their compute resources. Isolation should address access control, virtual LANs (VLANs), virtual machines, and storage.

Services provider selection criteria

Ten Factors to Consider when Selecting a Managed Services Provider

  •       Skills
  •       Experience
  •       Proactive Methodology
  •       Ability to address questions
  •       Responsive Service Level Agreement
  •       Accessible IT Services
  •       Holistic Approach
  •       Alignment with Industry Best Practices

 

Covering the whole vast world of cloud services providers doesn’t make much sense, when we’re focusing on FinTech, but there are so many options available. You can always decide to use clouds by Oracle or IBM, both of which are great. But the most interesting things are happening in China right now, where giants such as Huawei and Tencent are developing their services extremely fast. Will they be able to catch up with their global competitors? Only time will tell and we will be there to let you know!

Bones Ijeoma

Author since Nov 11, 2022
Bones Ijeoma is CEO and co-founder of AllSafe IT, and his mission is to make downtime obsolete. Bones received a BS in Computer Engineering from Cal State Long Beach and received an MBA in Entrepreneurship from USC Marshall School of Business. After finishing school and working for companies such as Marriott Hospitality, Dreamworks, and UCLA Medical Center, Bones realized there was a need for small businesses to have access to the same technology solutions that large corporations leverage.
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