Blog Details

May 7 , 2019

Transform vs upgrade - and what’s the difference?

Author: David Smith, VP Product Management and Marketing

Upgrading isn’t problem-solving

Our latest whitepaper, “Cloud Native: Transforming 21st Century Payments” delves into the transformational process. It offers an analysis of what conditions and what kind of mindsets make transformation possible. It considers the state of innovation in the payments market and how financial organisations that are ready for change can embrace a safe, affordable path to business transformation. We explain how Renovite’s approach to cloud-native payments solutions enables a sustained competitive advantage for businesses that are ready to inject positive change into their operations.

In today’s rapidly evolving field of digital banking, 21st-century payments organisations have to use 21st-century payments technology. Upgrading tired legacy infrastructure, again and again, isn’t going to solve problems - at best it will just delay them. Organisations need a new approach if they want to get ahead and then stay ahead of their competition.

Cloud-native payments applications leverage the benefits of a 21st-century mindset and 21st-century technology. In contrast to the legacy technology offered by traditional vendors, this innovative new breed of technology facilitates continuous improvement delivered in a CI:CD pipeline. Applications evolve seamlessly in response to business requirements and operate in an environment which thrives on small, agile enhancements in order to add and improve services for customers.

This model sits in juxtaposition to the one-size-fits-all ‘upgrader’ approach, characteristically offered by traditional vendors.  The mechanics and logic of applications developed and deployed on monolithic platforms - and then just hosted in a cloud are fundamentally different from those built using cloud-native technology and are incapable of delivering comparable benefits.

Three is the magic number

Cloud-native payments infrastructure offers many benefits to businesses in search of better payments solutions. In this blog we are highlighting just three of the key benefits of a cloud-native payments infrastructure.

Rapid, flexible deployment: Compared to legacy architecture, developing, testing, and deploying new features is incredibly efficient, thereby sharpening the tools you need to bring new services to market. Your completive edge will grow stronger, outstripping your previous operational capability and crucially, that of your competitors.

What’s more, because the changes are smaller, more frequent and less absolute, they can reflect the needs of individual organisations. This is a shift in the legacy vendor-buyer paradigm, offering deliverance from the long-endured ‘one size fits all’ upgrade model. The addition of end-to-end test automation means you can convert new ideas into new services quickly – and critically, with guaranteed reliability.

Elastic scalability: Cloud-native architecture means organisations can cost-effectively deploy services to more people in more places (or fewer people in fewer places) by easily scaling their processing resources in response to actual demand. Crucially organisations can lower their operation costs by only paying for what they need - when they need it. An added benefit of cloud hosting is that it converts upfront capital expenditure into lower recurring operational expenditure.

Black Friday, for example, commands a far higher processing capability than any other Friday as you will know. Traditional monolithic applications must be sized for their peak in advance and the costly headroom remains redundant until it is needed.

Lower risk: Financial services is a sector that cannot, if you’ll forgive the pun, afford risk. We know what happens from both a regulatory and public relations perspective if a bank suffers an IT outage. Not good. Our cloud-native technology is designed to manage the potential for component failure and guarantees a high-availability of service.

Reno-Cloud products are engineered to take full advantage of cloud architecture and a distributed computing architecture. If a microservice fails, an application is designed to recover, guaranteeing the same high-availability as monolithic architectures deployed on expensive fault-tolerant servers.

If you would like to know more about how we are helping businesses to transform and ultimately innovate new services, or for a more detailed discussion about the benefits cloud technology can offer, please do get in touch.