National Australia Bank (NAB)'s move to a private cloud infrastructure will continue well into 2015, the bank said this week.

Migration of NAB applications into the internal private cloud, which the bank has referred to as 'infrastructure on demand', is set to take place over the next 18 months.

The cloud environment is hosted at one of the bank's two new data centres in Deer Park, Melbourne. NAB has forecast operational cost reductions of $22 million over seven years as it consolidates 20 data centres and computer rooms down to two facilities in Melbourne.

According to an NAB spokesperson, a network which supports 600 branches and 11 head offices is now routed via the data centres.

The spokesperson added that the data centres and infrastructure on demand environment will provide the bank with the capacity needed to deliver its IT transformation program including the NextGen core banking platform.

The banking platform is part of a 10-year business transformation initiative to modernise the bank's IT systems.

"The data centres will be more efficient, use less power, remove the risk that comes with older data centres, process data and transactions more quickly and respond to the 24/7 digital future," said the spokesperson.

NAB's enterprise services & transformation group executive, Lisa Gray, announced this week that 4 million customers will be migrated to its NextGen platform over the next three years.

From early 2015, customers will be able to open an NAB-branded personal account on NextGen.

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