{"id":53063,"date":"2020-11-23T09:00:22","date_gmt":"2020-11-23T17:00:22","guid":{"rendered":""},"modified":"2025-04-30T14:25:56","modified_gmt":"2025-04-30T21:25:56","slug":"cloud-exit-planning-guidelines-for-financial-services-institutions","status":"publish","type":"post","link":"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/blog\/financial-services\/2020\/11\/23\/cloud-exit-planning-guidelines-for-financial-services-institutions\/","title":{"rendered":"Cloud exit strategies for financial services institutions"},"content":{"rendered":"\n<p>The financial services industry has evolved into a highly dynamic, technology-driven business with many institutions looking at the public cloud as an answer for delivering new solutions. Adoption and use of the public cloud has accelerated since 2020 as a result of the global pandemic which in some cases created highly urgent needs for innovation and digital solutions in financial services.<\/p>\n\n\n\n<p>Financial services regulators are also adapting and updating regulations and industry guidance at an increasing pace as the industry keeps transforming. This modernization of regulation is driving the industry further towards using public cloud technologies because of their superior overall capabilities when it comes to addressing challenges around security, compliance, privacy, operational resiliency, and data portability.<\/p>\n\n\n\n<p>Regulators are also addressing the emergence of perceived systemic and institution-level concentration risk because public cloud technologies are being provided by a relatively small set of hyperscale public cloud providers. To counter various risks, including perceived concentration risks, regulators are guiding financial institutions to developing comprehensive and detailed exit plans in particular when deploying critical or important workloads to the public cloud.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"microsoft-experts-use-industry-best-practices-to-develop-an-effective-exit-strategy\">Microsoft experts use industry best practices to develop an effective exit strategy<\/h2>\n\n\n\n<p>Microsoft\u2019s overall position on concentration risk has recently been published in a blog, <a href=\"https:\/\/cm-edgetun.pages.dev\/industry\/blog\/financial-services\/2020\/08\/31\/4-measures-to-counteract-risk-in-financial-services\/\" target=\"_blank\" rel=\"noopener noreferrer\">4 measures to counteract risk in financial services<\/a>, and related whitepaper, <a href=\"https:\/\/azure.microsoft.com\/en-us\/resources\/concentration-risk-perspectives-from-microsoft-\/\" target=\"_blank\" rel=\"noopener noreferrer\">Concentration risk: Perspectives from Microsoft<\/a>.<\/p>\n\n\n\n<p>Microsoft\u2019s exit planning guidance is aligned with industry best practices and came into existence after lengthy conversations, over the years, with global financial regulators, stakeholders within financial services institutions, and industry representatives such as the <a href=\"https:\/\/www.ebf.eu\/priorities\/cybersecurity-innovation\/cloudbanking\/\" target=\"_blank\" rel=\"noopener noreferrer\">European Banking Federation<\/a> (EBF).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-are-exit-strategies-and-why-are-they-important\">What are exit strategies and why are they important?<\/h2>\n\n\n\n<p>Exit plans are an effective risk mitigation mechanism for extreme Cloud Service Provider\u2019s (CSP) failures\u2014not only technical failures but also strategic or commercial reasons\u2014or other situations where the organization is unable or unwilling to continue using their existing CSP. The plan will help to prepare for business continuity by identifying, and in some cases also testing exit scenarios. Microsoft has been in-step in ensuring our financial services customers can meet such necessary requirements and has provided the tools and resources for our customers to develop business continuity and exit plans accordingly.<\/p>\n\n\n\n<p>Developing an exit plan and migration strategies are not easy tasks and they are optimally developed early on at the time of deployment. It is not uncommon that financial institutions deploy multiple business solutions using a single CSP such as Microsoft. In other cases, some customers deploy hybrid or multi-cloud solutions to better address the aforementioned risks. For those that are interested in such solutions, Microsoft recently published a blogpost on <a href=\"https:\/\/aka.ms\/MicrosoftHybridMulticloudBlog\" target=\"_blank\" rel=\"noopener noreferrer\">hybrid and multicloud strategies for financial services organizations<\/a>.<\/p>\n\n\n\n<p>Regardless of the choice of deployment model, exit plans that provide a 100 percent complete and fully tested failsafe are extremely hard (and expensive) to accomplish, making a pragmatic, risk-based approach that focuses on the most important business functions more appropriate. Fortunately, regulations allow this.<\/p>\n\n\n\n<p>This need for exit planning is now present in several financial regulations. The <a href=\"https:\/\/eba.europa.eu\/regulation-and-policy\/internal-governance\/guidelines-on-outsourcing-arrangements\" target=\"_blank\" rel=\"noopener noreferrer\">2019 final guidelines on outsourcing arrangements of the European Banking Authority (EBA)<\/a> initially raised the bar by introducing some very specific requirements for financial institutions that among others explicitly address the need for developing a documented exit strategy when outsourcing \u2018critical or important functions\u2019 to a CSP that is in line with outsourcing policies and business continuity measures. Similar guidance can be found in <a href=\"https:\/\/www.bankofengland.co.uk\/prudential-regulation\/publication\/2019\/outsourcing-and-third-party-risk-management\" target=\"_blank\" rel=\"noopener noreferrer\">the consultation paper on outsourcing and third-party risk management<\/a> issued by the Bank of England and <a href=\"https:\/\/www.esma.europa.eu\/press-news\/esma-news\/esma-consults-cloud-outsourcing-guidelines\" target=\"_blank\" rel=\"noopener noreferrer\">the consultation paper on draft guidelines on outsourcing to cloud service providers by the European Securities and Markets Authority (ESMA)<\/a>. All recommend a risk-based approach.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"the-seven-step-exit-planning-lifecycle\">The seven-step exit planning lifecycle<\/h2>\n\n\n\n<p>Starting in 2018, we published exit planning guidance using a seven-step exit planning lifecycle around a real-life example of a financial institution migrating to Microsoft 365. In 2019, we updated our guidance to include exit planning for Microsoft Azure, and today, we are proud to also include Microsoft Dynamics 365 in this latest 2020 update.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><img decoding=\"async\" src=\"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/blog\/wp-content\/uploads\/2020\/11\/sdsfsf.jpg\" alt=\"group of circles formed into a flow chart\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"exit-strategies-three-myths-and-three-truths\">Exit strategies: Three myths and three truths<\/h2>\n\n\n\n<p>In the <a href=\"https:\/\/servicetrust.microsoft.com\/ViewPage\/TrustDocumentsV3?command=Download&amp;downloadType=Document&amp;downloadId=4aa0c653-312f-4098-b78a-0d499e07825e&amp;tab=7f51cb60-3d6c-11e9-b2af-7bb9f5d2d913&amp;docTab=7f51cb60-3d6c-11e9-b2af-7bb9f5d2d913_FAQ_and_White_Papers\" target=\"_blank\" rel=\"noopener noreferrer\">Exit Planning for Microsoft Cloud Services white paper<\/a>, we are also addressing three myths as well as three truths around exit planning as there still are several misconceptions around what an exit plan will and will not provide. We hope to accelerate the debate around the topic by sharing our insights on these and encourage everyone to read all about them in more detail in the white paper.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><img decoding=\"async\" src=\"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/blog\/wp-content\/uploads\/2020\/11\/dsfdsfdsfs.jpg\" alt=\"diagram\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>&nbsp;<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"additional-microsoft-resources\">Additional Microsoft resources<\/h3>\n\n\n\n<p>To learn more, download our whitepaper, Exit Planning for Microsoft Cloud Services, and read our blog about <a href=\"https:\/\/azure.microsoft.com\/en-us\/blog\/hybrid-and-multicloud-strategies-for-financial-services-organizations\/\" target=\"_blank\" rel=\"noopener noreferrer\">hybrid and multi-cloud strategies for financial services organizations<\/a>. To access additional resources and learn how banks are transforming digitally using technologies from Microsoft and our solutions from our partners,\u00a0visit our <a href=\"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/financial-services\/banking\" target=\"_blank\" rel=\"noopener noreferrer\">banking<\/a>, <a href=\"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/financial-services\/capital-markets\" target=\"_blank\" rel=\"noopener noreferrer\">capital markets<\/a>, and <a href=\"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/financial-services\/insurance\" target=\"_blank\" rel=\"noopener noreferrer\">insurance<\/a> home pages.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As financial services use the public cloud for security and compliance, cloud exit and risk mitigation strategies are needed. Find out more with Microsoft.<\/p>\n","protected":false},"author":582,"featured_media":53108,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ms_queue_id":[],"ep_exclude_from_search":false,"_classifai_error":"","_classifai_text_to_speech_error":"","footnotes":""},"categories":[1523],"post_tag":[],"content-type":[1492],"coauthors":[3728],"class_list":["post-53063","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-services","content-type-news-and-announcements","review-flag-4-1593580449-167","review-flag-microsofts-microsofts","review-flag-new-1593580249-279","review-flag-percent"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Cloud exit strategies for financial services institutions - Microsoft Industry Blogs<\/title>\n<meta name=\"description\" content=\"As financial services use the public cloud for security and compliance, cloud exit and risk mitigation strategies are needed. 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