February 28, 2026

Is cloud migration a risky business?

By Ihyeeddine Elfeki, Global Head of Trading and Risk Management Solutions, DXC

Thinking of migrating data to the cloud?

One of the main difficulties of data migration is the way data is secured, governed and used once it moves to the cloud. Cloud providers have made significant progress in authentication, encryption, access control and monitoring. However, responsibility is shared, highlighting the importance of clear data ownership, lineage and usage controls.

Cloud adoption is no longer purely about moving data from on-premise platforms. It also embodies new capabilities such as advanced analytics, AI-driven insights and faster product innovation.

Clarify benefits and trade-offs

Understanding the reasons for considering a move to the cloud is critical. One positive aspect is bringing together data from multiple platforms, enabling sharper reporting, faster decision-making and fresh opportunities. The trade-off is data localization, which determines where data can legally and operationally reside.

Another ongoing challenge is separating core and sensitive data from data that can safely move to the cloud. This is especially complex in front-office environments, where market data, reference data, pricing models and analytics are closely linked.

Crossing regulatory boundaries

Global banks and financial institutions face fragmented regulation across jurisdictions. And the growing emphasis on data sovereignty, operational resilience and exit strategies can chip away at the advantages of full centralization.

Yet, practical solutions do exist. By focusing on their most vital data, building strong governance frameworks and strategically arbitraging managing regulatory constraints, firms can create value while remaining compliant.

In brief

Data security remains important, but the focus has shifted toward data governance, accountability and usage, especially in hybrid and multi-cloud environments.
Data localization and regulatory fragmentation continue to limit full data consolidation, particularly for global financial institutions operating across multiple jurisdictions.
Cloud migration must be powered by business value, with a clear focus on revenue impact, speed to market, operational efficiency and the embedding of cloud and AI into the company’s operating model and culture.

One view, many viewpoints

Cloud migration should not be viewed solely as a technical task; doing so reduces it to a basic infrastructure upgrade.

Instead, cloud adoption needs to be driven by business and operating model considerations. Effective business cases emphasize revenue growth, faster time-to-market, operational efficiency and measurable outcomes. Initiatives that directly impact revenue and clients mobilize teams quicker and deliver results faster.

Revitalize your company culture

The fact is, maintaining business momentum relies on using cloud-based data. Banks, asset managers and commodity firms are increasingly using AI and analytics to monetize data and improve pricing, risk management and client experience.

As organizations realize tangible value, cloud and AI become integrated into the company’s core operations rather than remaining separate transformation initiatives.

Thinking outside the channel

Take an insurance business, for instance. If you want to buy insurance, you visit comparison websites that show you various products and prices. But what if you want to buy an option or swap? The choice doesn't exist. Some treasury businesses are experimenting with making their product pricing data accessible to third parties, to create new revenue channels so that SMEs and wealthy customers can buy their products via a phone app or website.

Handling sensitive data

Or, how about a commodities house where, let's say, an oil tanker is moving from point A to point B. If the weather worsens or an issue arises, the contract can be adjusted on the fly. Now, the tanker is free to move its cargo via a new route to a different harbor destination, rather than waiting for the weather or other factors to improve. It saves a great deal of money and provides a better user experience. So, here, we’re dealing with sensitive data on pricing and the delivery of commodities, but it's feasible because there’s immediate value to the business.

Build a better business

Cloud remains central to digital strategy in financial institutions. Senior leaders recognize that success depends on early sponsorship, clear decision-making and practical trade-offs, as cloud, data and AI initiatives converge.

It’s critical to partner with organizations that understand financial services data, regulations and large-scale delivery. Enhancing cloud platforms with AI, automation and DevOps improves the ability to turn data into better business outcomes.

About the author

Ihyeeddine Elfeki is the Global Head of Trading and Risk Management Solutions at DXC. Ihyeeddine has 20 years of international experience delivering technology and business solutions to capital markets and financial services, showing optimal results in high-growth environments through initiatives that exceed operational performance targets and yield measurable outcomes. He has led several deals with banks, asset managers, treasury and commodity businesses and plays a key role in steering transformational journeys.