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How a Financial Services Firm Gained Control of Cloud Costs, Reduced Risk, and Modernized Without Disrupting Operations

Executive Summary

A mid-sized financial services firm was scaling cloud adoption but losing visibility, increasing costs, and exposing itself to governance risk. Legacy systems could not be moved, cloud usage was decentralized across business units, and compliance requirements limited modernization options.

Coventus designed a hybrid multi-cloud modernization solution, grounded in our Responsible and Safe AI approach to governance, using workload optimization, unified governance, phased migrations, and seamless integrations. This resulted in a scalable, secure enterprise platform to support long-term business growth.

Within 12 months, the engagement delivered an approximate 30% reduction in unattributed cloud spend, full cost transparency across business units, and a 40% faster deployment cycle for new digital initiatives alongside an improved security and compliance posture.

Background

This client provides products and services to customers in a heavily regulated segment of financial services, requiring adherence to multiple compliance requirements related to data protection, business continuity, security, and model risk management (e.g., SR 11-7). Historically, the firm’s IT infrastructure consisted of several disconnected components: early cloud-based deployments driven by cost and complexity considerations, legacy systems continuously providing core business functions, and a lack of overall governance spanning both environments.

Management recognized that modernization was necessary to remain competitive. However, this evolution required that operational continuity and regulatory compliance be strictly maintained throughout the transition.

Challenges

1. Infrastructure Implications

Legacy infrastructure was limiting business growth, forcing the organization to spend disproportionate effort maintaining outdated systems rather than investing in innovation. There was no practical path to move mission-critical applications to modern platforms without risking disruption.

2. Lack of Visibility into Cloud Spend

Cloud use expanded across departments, but cost tracking became unmanageable. Finance estimated as much as 20 to 25% of monthly cloud spend could not be attributed to a specific business unit or workload.

3. Legacy Systems Unable to Interface with New Applications

Mission-critical applications remained on legacy systems with no viable migration path, preventing process automation and slowing delivery of new digital capabilities.

4. Siloed Data and Teams

Data and personnel were isolated in separate silos. Poor cross-functional communication resulted in manual workarounds, duplicated effort, and delayed access to critical information.

5. Difficulty Scaling Governance and Security

The decentralized IT environment made it difficult to enforce a standardized security and compliance framework. Management wanted stronger oversight without sacrificing operational flexibility.
Left unaddressed, these interconnected challenges created a cycle of escalating costs and rigid compliance bottlenecks. A simple lift-and-shift approach was insufficient; the firm required a highly deliberate solution.

A Hybrid-Cloud Solution

Coventus collaborated with the firm to design a hybrid multi-cloud strategy aligned with their growth objectives, regulatory obligations, and long-term scalability needs. By applying our Responsible and Safe AI framework, we ensured governance and risk controls were integrated organically.

The primary goal was establishing a controlled operating model that balanced scalability with regulatory accountability, rather than simply migrating servers to check a box.

Architecture Based on Workload Optimization

We analyzed the firm’s workloads against regulatory requirements, interdependencies, and performance expectations, then identified the optimal location for each (on-premises or cloud). This produced a hybrid architecture balancing control over sensitive applications with cloud scalability. Workload decisions were driven strictly by business criticality and compliance requirements rather than a default cloud strategy.

Unified Governance Model & Real-Time Usage/Cost Visibility

We established a single governance model across the firm’s cloud infrastructure, giving senior management real-time visibility into departmental cloud usage and spend. This closed the visibility gap on the ~20–25% of previously unattributed spend and standardized financial accountability across business units.

Governance was embedded at the architecture level, not added after deployment.

Incremental Phased Application Modernization

Rather than a big-bang migration of legacy applications, we developed an incremental modernization plan that allowed core services to continue with minimal interruption. Secure, scalable API and interoperability layers bridged legacy and cloud systems, preserving existing value while enabling future adoption of new technologies. Avoiding large-scale migration significantly reduced both operational risk and business disruption.

Integration-Driven Architecture Design

Secure connectivity between systems and teams was integrated into the design from day one, not tacked on afterward. Integration was fundamental to the entire strategy.

Ultimately, we enabled a modern enterprise platform that can adapt to future demands — with governance and compliance built in as a foundation, not a constraint.

Results

Our hybrid multi-cloud transformation produced measurable benefits across the business:

  • ~30% reduction in unattributed cloud spend within 12 months
  • Real-time cost/usage visibility across multiple business units
  • ~40% faster deployment cycles for new digital initiatives
  • Centralized governance reducing operational complexity and audit prep time
  • Streamlined integration of legacy and modern workflows, cutting manual reconciliation effort
  • Improved security and compliance posture, with governance embedded at the architecture level
  • Stronger cross-team collaboration through shared workflows and reduced silos

Takeaways

  1. Hybrid multi-cloud modernization is a strategic business decision, not merely an IT upgrade.
  2. Governance and compliance must be embedded from the foundation, not layered on after the fact.
  3. Incremental modernization minimizes disruption and reduces long-term risk versus a big-bang approach.
  4. Integration eliminates organizational silos; it’s foundational, not optional.
  5. Workload placement should be driven by business objectives and compliance requirements, not default cloud strategy.
  6. Modernization without governance increases risk faster than it delivers value.
  7. Integration is the foundation for scaling both digital and AI capabilities responsibly.

Conclusion — A Platform Built for Future Innovation

When grounded in responsible governance, hybrid cloud modernization allows financial institutions to transform securely without risking operational continuity. When modernization is directly tied to business objectives, the results are tangible: greater agility, lower complexity, and a scalable platform for long-term success. Ultimately, a modernized cloud strategy fundamentally rewrites how an enterprise controls risk and scales innovation.

“Hybrid and multi-cloud modernization is not just an IT transformation; it’s a strategic enabler of secure and scalable business growth.”

Enterprise Application Modernization