Alior Bank cuts virtualisation costs by 60% with Hitachi

Alior Bank is modernising its virtualisation environment with Hitachi Vantara and Red Hat, in a project the Polish lender expects will cut virtualisation costs by about 60%.

The bank is moving hundreds of virtual machines that support core banking workloads from older virtualisation platforms to Red Hat OpenShift running on Hitachi Vantara's Virtual Storage Platform One. As part of the shift, it is also bringing virtual machines and containerised workloads into a single environment.

The project reflects a broader challenge in financial services, where many banks still rely on legacy technology that can slow product development and increase operating costs. Research cited by the companies found that 59% of banks still struggle with legacy technology issues.

Founded in 2008, Alior Bank has grown into one of Poland's 10 largest banks. The infrastructure overhaul is intended to improve its cost base, simplify administration and strengthen resilience across critical systems.

The lender has already implemented the storage systems and is now migrating virtual machines to the new platform. It expects a full return on investment within two and a half years.

Single platform

A key part of the project is consolidating separate environments for virtual machines and containers. Running both on a single platform can reduce duplication across management tools and operating processes, an issue that has become more pressing as banks add cloud-native applications alongside older systems.

To support the setup, Alior Bank deployed VSP One Block and additional VSP storage systems in a multi-site active-active configuration using Hitachi Global-Active Device. The arrangement is designed to keep services running across sites with near-zero downtime.

The environment also uses Hitachi Vantara Container Storage Interface software, which integrates storage automation with Kubernetes distributions, including Red Hat OpenShift. For the bank, that means volume management can be handled consistently across both virtual machines and containerised workloads.

The architecture is intended to give the bank a more uniform way to manage applications and data across its estate. It also supports highly available storage across metro cluster distances.

Cost pressure

Banks have been reassessing virtualisation strategies as software licensing costs rise and technology estates become harder to manage. For institutions running a mix of older applications and newer digital services, maintaining separate stacks for different workloads can add complexity and expense.

Alior Bank's move away from traditional virtualisation platforms is intended to address both issues at once. Alongside the projected 60% reduction in virtualisation costs, the bank expects simpler management and stronger resilience for critical systems.

"We are breaking new ground with Hitachi Vantara and Red Hat by taking a new approach to virtualisation that supports both operational efficiency and flexibility," said Piotr Krzak, Chief Technology Officer at Alior Bank.

"By moving beyond traditional platforms, we are reducing costs while creating a more flexible foundation for our applications. Once we have proved the value of this model, we believe many organisations will follow."

For Hitachi Vantara, the project demonstrates how financial institutions are seeking alternatives to established virtualisation models while avoiding disruption to daily operations. It described the Alior Bank deployment as an example of consolidating workloads without separating container and virtual machine management.

"Alior Bank is simplifying the management of a complex environment while maintaining the performance and availability required for critical systems," said Adrian Johnson, Chief Revenue Officer at Hitachi Vantara.

"Bringing virtual machines and containers together on Red Hat OpenShift, supported by Hitachi Vantara's VSP One data platform, reduces operational overhead, strengthens resilience and creates a more consistent foundation for ongoing development."

Red Hat said customers are increasingly seeking practical ways to move away from older virtualisation approaches while keeping existing applications running. OpenShift supports both virtual machines and containers on the same platform, making it a common option for organisations seeking to standardise operations.

"Organisations are looking for practical ways to move beyond traditional virtualisation models without introducing disruption," said Mike Barrett, Vice President and General Manager of Hybrid Cloud Platforms at Red Hat.

"Red Hat OpenShift, which includes Red Hat OpenShift Virtualization, is the industry's leading hybrid cloud application platform powered by Kubernetes, providing a consistent platform to run virtual machines and containers together. This helps organisations simplify operations while supporting modern application strategies."