Leveraging the Power of Data Modernization in Financial Services: Block’s Transformation Journey

To stay competitive in the dynamic world of financial technology and services, Block Inc. sought to take a bold leap forward with its data and analytics. In early 2022, the company faced a significant operational hurdle: the need to modernize its legacy IT systems. Namely, Block grappled with the complexities of migrating to a cloud-based infrastructure.

“We were running out of headroom,” said Erin Dingilian, program and operations manager at Block. “Our headroom was going to run out by mid-2024 if we didn’t react. Instead of addressing that and buying more capacity and putting up more data centers, we decided to take that sum of money and say, ‘OK, we’re going to double down on migrating to the cloud.’ We redirected our investment to launch our program in April of ’22.”

The transformation was crucial not only for enhancing operational efficiency but also for integrating disparate data sources under a robust governance framework. Adding to this was the imperative of adhering to the stringent compliance and regulatory requirements typical of the financial sector. It demanded a robust cloud infrastructure predicated on secure scalability.

A tactical partnership for a successful cloud migration

Recognizing the magnitude of these challenges, Block embarked on a tactical collaboration with AWS and Effectual. This partnership was pivotal in steering the company through the intricate processes of cloud migration and data strategy implementation. The engagement was marked by a focus on developing a holistic approach, one that encompassed governance, integration, and the use of artificial intelligence and machine learning.

Effectual presented innovative solutions such as containerization, serverless computing, and microservices, which were integral in re-architecting Block’s legacy applications for the cloud era. AWS’s robust cloud infrastructure and advanced data analytics capabilities provided the backbone for this transformation. Through AWS, Block accessed powerful tools like Aurora and comprehensive data lakes, facilitating efficient data management and analytics.

The fruits of digital transformation

The results of Block’s cloud migration were as impressive as they were diverse. The company witnessed an enhanced customer experience, underpinned by data-driven insights that revolutionized service delivery.

“Our cloud network has reduced latency from minutes to seconds,” Dingilian noted. “Another huge success story — and this really is a testament to the partnership with Effectual as well — is that we had challenges with our database cutover and migration to Aurora. With the tenacity of two engineering squads and Effectual being on the ground with us in partnership, we were able to get that cutover from 3½ hours to less than a minute in reads and maybe a minute or two in writes.”

Financially, the migration led to a substantial decrease in operational expenses. The use of AWS’s Graviton instances for RDS databases and ElastiCache drove down costs while simultaneously boosting performance. Asset tagging enabled a detailed understanding of resource utilization, further optimizing expenditures.

Even challenges culminated in net positives thanks to Effectual’s guidance. The migration goal of 30% by 2023’s first quarter — though slightly missed initially — was rapidly caught up, showcasing the team’s agility and commitment to the project.

Ultimately, the successful shift to cloud infrastructure fortified Block’s compliance and security framework. Thus, the transformation equipped the company with the technological foundation and IT agility necessary for global expansion.

The value of a strategic vision and technological innovation

Block’s cloud migration is a shining example of how proper foresight, the right partnerships, and a commitment to innovation can have a transformative impact on organizations seeking to harness the potential of the cloud. This effort — marked by a seamless blend of Effectual’s expert guidance, AWS’s technological prowess, and Block’s forward-thinking vision — demonstrates how even the most daunting digital transformations can be achieved with the appropriate mix of technology, strategy, and collaboration.

Gearing up for your own cloud migration? Contact the experts at Effectual.com to ensure the best path forward.