"What I enjoy most is helping our customers thrive in this rapidly changing world and helping them realize their vision in a way that simplifies the adoption of new technology — capabilities that can unleash their innovation in the digital economy," said Craig Muzilla, senior vice president of Red Hat. He explains to PYMNTS how the pandemic-triggered digital shift has tested the market infrastructure that supports the digital economy.
The pandemic has been a real-world stress test of the market infrastructure that supports the digital economy. For example, in the United States, the demand on the internet infrastructure surged by 25 percent as large parts of the population practiced social distancing. Mobile networks were impacted as well, attributing an additional 20 percent growth to the pandemic. Essential tools for remote working, such as video conferencing, have grown 110 percent year over year. Traditional retailers scrambled to adjust to a digital-only world. In short, the digital economy has been put into overdrive as the analog economy came to screeching halt.
A Permanent Shift for Payments
Digital commerce, by its very nature, is sensitive to consumer volatility. There is no queuing in lines when digital demand accelerates, only system outages and customer outrage. Early indications point to a permanent shift to digital that is underway, as customers grow increasingly accustomed to transacting digitally. The introduction of real-time payments undoubtedly adds more pressure to the underlying infrastructure, as customers will expect instant clearing and settlement of funds. This permanent shift means that banks, payment networks and payment providers must cope with fluctuations in volume while retaining the responsiveness of a real-time service. The new normal will need cloud technology that can adapt and bend, but not break.
Resilience in the Digital Economy
The digital economy is increasingly dependent on the infrastructure that powers the internet. Whether it is problems with internet or mobile network connectivity or issues with cloud infrastructure inside or outside the bank, essential financial services can be impacted. EBA has been proactive in this regard in putting forward guidance to financial service firms on mitigating risk concentration with cloud infrastructure in the European market. This included obligations to ensure availability of critical financial services in the event of a cloud provider not being available. At Red Hat, we continue to invest in technology that improves the ability of our customers to move software assets from one cloud environment to another. This critical capability reflects the expectations of both customers and regulators in a digital world. The pandemic is only accentuating the expectation.
Thriving in the New Normal
Our customers don’t want to be weighed down by cloud operations or constrained by access to new technology, especially when it is essential for them to compete in the digital economy. The advantage of cloud technology is increasingly being realized by many — but the cost, complexity and risk of making the change can be a barrier. Helping firms to progressively adopt cloud technology and bridge the gap between the old and the new technology is critical.
What I enjoy most is helping our customers thrive in this rapidly changing world and helping them realize their vision in a way that simplifies the adoption of new technology — capabilities that can unleash their innovation in the digital economy.