As a service has remodeled the way we consume enterprise software

What exactly is “as a service” (aaS) anyway, and how does it differ from simple cloud migration?

Unlike basic cloud migration (moving systems to a lower, non-capital-intensive cost environment), the as-a-service model introduces several software service layers that simplify the deployment, implementation and integration responsibilities associated with third-party software.

The rapid advance of cloud computing across the enterprise landscape accelerated the growth of a new generation of businesses and business models. As a service’s evolution established a new way of consuming enterprise software — assimilation of the entire tech stack, including middleware, integration, application updates, support services, monitoring and security, all on a per-usage basis.

Initially used for smaller systems such as HR information systems, the as-a-service model now offers large cost optimizations for core financial services infrastructure.

Each step toward an industry utility model accumulates cost-benefits from shared and optimized business, technology, support, hosting, security and compliance services. As-a-service models deliver these mutualized benefits via incremental, integrated application servicing (platform as a service, PaaS), vendor and application standardization (software as a service, SaaS) and key business operations outsourcing (business process as a service, BPaaS) options.

As a service reduces complexity

The technology landscapes of financial services firms are inherently complex. Underneath each application lies a microecosystem of integration links, monitoring programs and sophisticated systems for data transfer.

As a service tackles the whole convoluted ecosystem, transferring data in and out of the organization instantly and securely (with easy access), utilizing cloud-native technologies for a seamless connectivity process. There’s no danger of falling behind with upgrades or getting stuck with obsolete technology, either. Inclusive of license fees, built-in evergreening provides a predictable TCO for the life of the deal, ironing out the CapEx spikes associated with upgrades and end-of-life hardware.

Components of an as-a-service ecosystem

Total connectivity

Rather than just outsourcing one or two systems to the cloud, this embraces an entire ecosystem — a universe of interconnected systems that seamlessly and securely connect to one another. An organization’s entire IT estate, including complex back-office processes and bespoke customizations, can be outsourced safely, securely and compliantly, while retaining full control of its data and workflows.

Slicker migration and integration

Public clouds, e.g., AWS, have positioned themselves to host and integrate all mission-critical applications. By providing application and data tools, they ease the migration of apps to the cloud. Accordingly, API-accessible services allow efficient integration between applications.

In fact, many popular applications have built-in integration with data transport and analytics services in the cloud. This facilitates the migration of entire business functions. For example, trading, risk and middle-office systems can all be migrated to public cloud and integrated with each other, including adjacent services such as application health and security monitoring.

As-a-service technology providers offer high-level architectures for their solutions, outlining how they solve important challenges such as high availability, disaster recovery, security, access, data backups and identity management. Strategies for keeping software patched, up to date and covering the latest security vulnerabilities must be shareable. Any subsequent processes that could affect the use of the as-a-service offering must be flexible enough to minimize operational impact.

Principle elements of well-designed as-a-service operations

Regulatory compliance also extends to the cloud; AWS and other industry-leading public cloud services are ISO, SEC or SOC certified. In addition, public clouds provide services specifically designed to make applications compliant, such as audit trails, high availability, disaster recovery and role-based access controls (RBAC). The services simplify control and data access audits, especially when multiple applications comprising an entire business unit are bundled together.

With a fully hosted, managed service, every milestone in the process is included, from the most robust security protections and keeping up to date with upgrades, to run, change and connectivity. Due diligence is performed on the client’s behalf to ensure full compliance with internal and external outsourcing requirements.

DXC has extensive expertise in the fully hosted, managed, as-a-service solutions that enable optimization and a trusted transition. We’ve provided these services to tier-1 organizations in the banking, capital markets and insurance sectors for many years.

Our experts see to it that the necessary information security and technology controls provided meet the highly regulated needs of our customers. This is central to complying with executive accountability regimes and ensuring that clients can effectively reduce their technology risk profiles.