The COVID-19 pandemic brought dramatic changes to the financial services industry. Already under pressure from nimble young fintechs to modernize, established banks and insurers were undergoing incremental digital transformation. But in 2020, they hit the gas pedal. Branches closed and remote work became the norm. Almost overnight, employees needed secure remote access to corporate systems, and customers expected to be able to complete even complex transactions whenever they wanted, on whatever device. Even as things return to normal, many of these shifts are likely to be permanent. According to Forrester Research, nearly 90% of global financial services CIOs and SVPs believe that improving their application portfolio is key to improving customer experience and driving revenue.¹ The problem? Replacing legacy systems with cloud-based SaaS enterprise software is a massive, time- and resource-intensive process. 

IDG’s recently completed white paper, Financial Services Spotlight: Elevating agility and security in the cloud, highlights an alternative to the all-or-nothing approach to replatforming: “lifting and shifting” on-premises applications and workloads to the cloud without rewriting them. In this way, you keep your organization’s familiar architecture, but give it the scalability and cutting-edge technology of a modern cloud environment. That’s the promise of Google Cloud VMware Engine brings to the financial services industry.

Here’s a quick overview of the insights that the IDG study uncovers. Download the complete white paper.

Simpler migration, rich rewards

Google Cloud VMware Engine helps financial services companies seamlessly migrate and run 

VMware workloads natively on Google Cloud. Once in the cloud, firms can take advantage of Google Cloud services, access a robust third-party cloud ecosystem, and use the same VMware tools, processes, and policies their teams already know. The IDG study found that migrating to Google Cloud with Google Cloud VMware Engine offers multiple benefits:

1. Create new customer experiences. Migrating to Google Cloud puts modern, cloud-native architectures and technologies — such as containers and microservices — easily within reach. These make it possible for financial institutions to quickly and securely launch new applications and update them on a continuous basis using DevOps pipelines. They also allow firms to craft more personalized customer experiences across channels using Google Cloud’s native AI and data analytics.
2. Deliver new services. After migrating, financial services organizations can connect to multiple third-party service providers via cloud-based APIs to bring new, diverse services to their customers — without having to build from scratch. 
3. Make the best use of IT resources. When your data and applications reside in Google Cloud, you’re no longer constrained by the physical storage and compute limits of on-premises infrastructure. This means your company can match capacity to demand — even during unexpected peaks. You also gain more visibility into your hybrid cloud environment with Google Cloud’s operations suite, which offers intelligent analysis and easier troubleshooting for your platform and applications.
4. Gain fresh insights. The key to understanding what customers need and when they need it resides within your data, and data analytics in the cloud help you uncover those insights. Your company can connect to Google Cloud’s serverless data warehouse, BigQuery, which leverages data to deliver valuable insights for personalized customer experiences, rich compliance reporting, new product development, intelligent fraud detection, and more. 
5. Choose what to move. Data governance regulations and requirements specific to the financial services industry mean that some data must remain on premises. Google Cloud VMware Engine lets you easily manage a hybrid cloud/on-premises environment to keep sensitive data fully under your control.
6. Become more resilient. Google Cloud VMware Engine gives financial services firms a distributed architecture and centralized control for their applications to support vital business continuity functions, such as backup and disaster recovery. This is on top of the performance and availability of Google Cloud’s global infrastructure.
7. Improve security. Using cloud-native application frameworks, administrators can issue patches and software updates centrally and automatically across their organizations. This reduces the risk of errors and security vulnerabilities. Firms also tap into the security features and capabilities of Google Cloud, including always-on encryption and AI-powered threat detection.
8. Redirect IT resources. Migrating virtualized workloads to the cloud can free up talent and budget to develop new products and services — time that was previously spent on maintaining complex on-premises infrastructure. That means less effort spent keeping the lights on, and more resources directed toward creating innovative and differentiating customer experiences.

IDG research concluded that migrating business applications to Google Cloud with Google Cloud VMware Engine can help financial services companies stay ahead of change without incurring further technical debt from their legacy IT systems. Working with cloud-based systems can give your financial services company much of the scale, speed, and agility of a startup while still enjoying the benefits of being an established organization.

Read the complete white paper to learn more about the ways in which Google and VMware work together to accelerate digital transformation for financial services firms.

^{1. Vmware-forrester-financial-services-modern-app-report.pdf, A commissioned study conducted by Forrester Consulting on behalf of VMware, 2020}

About FNM Group

FNM Group is the main private, integrated group in transportation and mobility in the North of Italy.

Industries: Other

Location: Italy

About Innext

Innext, one of Italy’s select Google Cloud Premier Partners, helps companies turn objectives into tangible actions, and change into a competitive advantage.

Industries:

Location:

Founded in 1877, the FNM Group is Italy’s second largest railway company, operating in the Lombardy region. With 700,000 passengers a day, the core business remains with railway operations, but in recent years the FNM Group has redefined itself as a mobility service provider rather than just a public transport operator, with transport solutions like car-sharing platforms in parts of the country disconnected from the main railway lines. As part of this evolution, in 2016, FNM Group initiated a new strategy to overhaul its technology and build a platform that could support its ambitious, new direction.

“We needed an IT system that could rapidly adapt to the new market requirements we are planning to address,” says Augusto de Castro, Director of Human Resources, Organization, and IT at FNM Group. “To achieve this goal, we decided to modernize our information system and move to a cloud-based infrastructure, so we started testing various solutions. For us, the best came from Google.”

Collaborative office productivity

Since 2005, the FNM Group had used SAP Business Suite for its platform, using on-premises servers to manage its technology and database solutions. By 2016, when the group expanded its horizons, the on-premises infrastructure was showing its age and limitations. In addition, FNM Group office productivity tools limited workers’ mobility and flexibility. The company decided that a cloud-based solution was the most economical and effective infrastructure for its new innovation-focused strategy, but also wanted to continue the high-quality service it received from SAP.

In April 2017, FNM Group teamed up with Innext, a leading Italian consultancy and Google Cloud Premier Partner, to help transition to the cloud. After taking the time to assess specific needs at FNM Group, Innext supported the company’s decision to start the project with a migration to G Suite, replacing the existing email and office productivity platform. With help from Innext, FNM Group provided its workers with new tools such as Gmail, cloud-based storage on Google Drive, and fast, effective collaboration with Google Hangouts. As well as technical help, Innext brought a whole change management program designed to help FMN workers take full advantage of the new platform. “One of our top goals in any project is the adoption of the G Suite platform,” says Andrea Servili, Co-founder and Partner at Innext.

Cloud-based enterprise solutions with SAP HANA and SAP S/4HANA

While defining the G Suite migration, Innext and FNM Group began looking for an infrastructure solution. The timing was perfect. Earlier in the year, Google announced that SAP HANA and SAP S/4HANA, the latest software from SAP, would be able to run on Google Cloud Platform (GCP). Running on Google Compute Engine instances, Google Cloud Storage for backups, and Google Virtual Private Cloud as a networking solution, FNM Group can continue to use the enterprise platform of its choice along with all the advantages of Google cloud technology. By July, 2018, FNM Group plans to have fully migrated to SAP HANA and SAP S/4HANA on GCP and have its 1,200 employees using G Suite.

“SAP HANA and SAP S/4HANA on Google Cloud Platform and G Suite will make our employees much more mobile,” says Augusto. “They can access the system through a web browser if they have to, so they’re not tied to a local physical interface.”

Building a platform to last

With Innext and SAP HANA and SAP S/4HANA on GCP, FNM Group is building an enterprise infrastructure that can handle the demands of its traditional public transport operations and adapt to the company’s more innovative activities, such as car-sharing or energy management. By the time the migration is complete in 2018, FNM Group will save on infrastructure costs by only paying for the resources it uses with flexible pricing from Google. G Suite lets the company’s workers stay mobile and effective, and with Google Compute Engine, FNM Group can easily scale its infrastructure up or down to meet whatever challenges it faces in the future. Meanwhile, Google Cloud Storage helps ensure that FNM Group will have a highly secure, reliable backup solution. Once the migration is complete, FNM Group can start exploring other ways in which Google can help its business, especially with data analytic products like Google BigQuery or Google Cloud AI machine learning tools. Whatever the challenge, FNM Group knows that it can rely on Innext and Google to provide the right solution.

“Our main priority is to shut down our on-premises infrastructure and take advantage of the benefits of the cloud,” says Augusto. “Google Cloud Platform and SAP HANA and SAP S/4HANA will help us reduce our maintenance costs and improve our flexibility. I think we will spend less time continually upgrading our infrastructure and more time improving our productivity.”

Google Cloud is proud to support our customers with the cleanest cloud in the industry. For the past four years, we’ve matched 100% of our electricity use with renewable energy purchases, and we were the first company of our size to commit going even further by running on carbon-free energy 24/7 by 2030.  As we work to achieve 24/7 carbon-free energy, we help you take immediate action to decarbonize your digital applications and infrastructure. We’re also working with our customers across every industry to develop new solutions for the unique climate change challenges that organizations face. Today, we’re excited to expand our portfolio of carbon-free solutions and announce new partnerships that will help every company build a more sustainable future. 

First, we’re launching Carbon Footprint, a new product that provides customers with the gross carbon emissions associated with their Google Cloud Platform usage. Now available to every GCP user for free in the Cloud Console, this tool helps you measure, track and report on the gross carbon emissions associated with the electricity of your cloud usage. Of course, the net operational emissions associated with your Google Cloud usage is still zero. With growing requirements for Environmental Social and Governance (ESG) reporting, companies are looking for ways to show their employees, boards and customers their progress against climate targets. Using Carbon Footprint, you have access to the gross energy related emissions data you need for internal carbon inventories and external carbon disclosures, with one click. 

Built in collaboration with customers like Atos, Etsy, HSBC, L’Oréal, Salesforce, Thoughtworks and Twitter, our Carbon Footprint reporting introduces a new standard of transparency to support you in meeting your climate goals. You can monitor your gross cloud emissions over time, by project, by product and by region, giving IT teams and developers metrics that can help them reduce their carbon footprint. Our detailed calculation methodology is published so that auditors and reporting teams can verify that their cloud emissions data meets GHG Protocol guidance.

“The power of knowledge combined with the power of technology innovation plays a vital role in proactively responding to the climate crisis we are facing. With Google Carbon Footprint reporting, Atos feeds emissions data in our Decarbonization Data Platform, demonstrating potential emissions reductions from the Google Cloud Platform to our customers. This reporting opens up new levels of emissions transparency, trajectory planning, and data insight to support our customers in meeting, and potentially accelerating towards, their climate goals.”—Nourdine Bihmane, Head of Decarbonization Business Line, Atos

“The capability to measure and understand the environmental footprint of our Public Cloud usage is among the key axis of our sustainable tech roadmap. With Google Cloud Carbon Footprint, we are now able to directly follow the impact of our sustainable infrastructure approach and architecture principles.”—Hervé DUMAS, Sustainability IT Director, L’Oreal

While digital infrastructure emissions are just one part of your environmental footprint, accurately accounting for IT carbon emissions is necessary to measure progress against the carbon reduction targets required to avert the worst consequences of climate change. To help you account for emissions beyond our cloud and across your organization, we’re excited to partner with Salesforce Sustainability Cloud, integrating our Google Cloud Platform emissions data into their carbon accounting platform. 

“As we face unprecedented climate challenges, companies across the globe need to embed sustainability into the core of their business in order to meet growing customer and stakeholder expectations, and reduce their environmental impact. Together, Google Cloud and Salesforce Sustainability Cloud can help our joint customers accelerate their path to Net Zero, leveraging data-driven insights and visualizations to track and reduce their carbon emissions to drive sustainable change.”—Ari Alexander, GM of Salesforce Sustainability Cloud. 

From information to action

With the gross energy-related emissions footprint of data associated with your Google Cloud usage now available, we’re committed to providing tools to not only measure your carbon footprint, but help you reduce it. We recently launched low-carbon region icons to help you choose cleaner regions to locate your Google Cloud resources. New users who see the icons are over 50% more likely to choose clean regions over others, ensuring their applications emit less carbon over time. 

For current Google Cloud users, we’re pleased to announce that Active Assist Recommender will include a new sustainability impact category, extending its original core pillars of cost, performance, security, and manageability. Starting with the Unattended Project Recommender, you’ll soon be able to estimate the gross carbon emissions you’ll save by removing your idle resources. Unattended Project Recommender uses machine learning to identify, with a high degree of confidence, projects that are likely abandoned based on API and networking activity, billing, usage of cloud services, and other signals, and provides actionable recommendations on how to remediate those abandoned projects. By deleting these projects, not only can you reduce costs and mitigate security risks, but you can also reduce your carbon emissions. In August, Active Assist analyzed the aggregate data from all customers across our platform, and over 600,000 gross kgCo2e was associated with projects that it recommended for cleanup or reclamation. If customers deleted these projects they would significantly reduce future gross carbon emissions. Check out this blog to learn more about Active Assist.

Solutions for climate resilience 

Many of our customers face difficult questions about how their business impacts the natural environment today, and how it will be affected by climate change in the future. Answering these questions requires rich datasets about the planet, better analytics tools and smarter models to predict potential outcomes. For over a decade Google Earth Engine has supported scientists and developers with hyperscale computing power and the world’s largest catalog of satellite image data. Today, we are delighted to announce the preview of Earth Engine as part of Google Cloud Platform. Now, you can access Earth Engine and combine it with other geospatial-enabled products like BigQuery. By extending Earth Engine’s powerful platform to enterprises through Google Cloud, we are bringing the best of Google together. 

Over the past year we’ve worked with a number of organizations to use Earth Engine technology with tools like BigQuery and the Cloud AI Platform to develop new solutions for responsible commodity sourcing, sustainable land management and carbon emissions reduction. Earth Engine enables companies to track, monitor and predict changes in the Earth’s surface due to extreme weather events or human-caused activities, thus  helping them save on operational costs, mitigate and better manage risks, and become more resilient to climate change threats. This new offering will wrap the unique data, insights and functionality of Earth Engine with a fully-managed, enterprise-grade experience and reliability.

As we work with our customers to accelerate their sustainability initiatives, earth observation data is proving critical to effectively plan for the long-term impacts of climate change. To extend our geospatial and sustainability use cases we’re also expanding our partnerships with CARTO, Climate Engine, Geotab, NGIS, and Planet to bring their data and core applications to Google Cloud.

These partners will each make their existing platforms and datasets available globally on Google Cloud, giving you low-latency and reliable access to critical data and applications that will inform your sustainability initiatives. By integrating water availability, agricultural data, weather risks, and extensive daily satellite imagery into Earth Engine and BigQuery, you can achieve more ambitious goals for the sustainability of your business and our planet.

Committing to help you meet your climate goals

With each of these tools, we’re working to reduce the barriers you face in adopting more sustainable technology practices. We understand that building more sustainable applications and infrastructure is not easy. You face competing priorities, technical challenges, and the perception that climate action is costly. 

It doesn’t have to be this way. Today, we are making a sustainability pledge to you: teams across Google Cloud are committing to eliminating the barriers you face in building a more sustainable digital future for your organization, and will help you take action today to realize your climate goals. We’ll do this in a number of ways: 

1. In digital transformation projects and workshops, sustainability teams will always have a seat at the planning table, so we can work together on using cloud technology to build a more sustainable future. 
2. We’re putting low-carbon signals natively into our products to help developers choose more sustainable options early in their application development. 
3. We’ll ensure carbon impact is measured consistently with other key performance indicators. Leveraging the social cost of carbon, the ROI models and value assessments you conduct with Google Cloud will project your emissions impact too. 
4. We’ll be transparent about our carbon impact, by publishing third-party reviewed reports and methodologies, so you can trust the data for your own reports and disclosures. 
5. We’ll continue to work with the industry on best practices, including educational resources like Sustainable IT – Decoded, a new masterclass created in partnership with Intel, that shares the expertise of sustainability thought leaders. 

For the next decade we need to work together to avert the worst consequences of climate change. We’ve made tremendous progress in building technology that helps everyone do more for the planet, and we’re excited to see what you do with it. Visit this page to learn more about Google Cloud’s sustainability efforts.