Temenos unveils future-ready banking powered by Azure SQL Database Hyperscale

To keep pace with digital transformation and evolving customer expectations, banking technology company Temenos moved away from on-premises virtual-machine–based architecture and created a cloud-native software as a service (SaaS) solution.

Temenos enabled core banking services with Azure SQL Database Hyperscale and Azure Kubernetes Service. Its platform manages terabytes of data and enables rolling, zero-downtime software updates.

Temenos SaaS provides global reach, high availability, resilient managed services, and cost-efficient architecture. It’s a future-proof solution for banks of all tiers, who can grow without having to re-platform.

“Temenos Core is powered by Azure SQL Database Hyperscale, which supports database sizes of up to 128 terabytes. Our customers get the processing speed and architectural flexibility to future-proof core banking processes without re-platforming for growth.”

Nanda Badrappan, Deputy Chief Technology Officer, Temenos

High availability and performance are essential, because banks face millions of dollars in lost transactions during every downtime. As banking consumers grew accustomed to seamless digital experiences with major technology and retail innovators, they expected service backed by continuous delivery, rapid release cycles, and operational resilience.

Building on a modern cloud foundation

To deliver highly available services, Temenos evaluated cloud architectures and chose to work with Microsoft Azure. “A modern solution built on Azure supports massive transactional workloads with global reach, high availability, resilient managed services, and cost-efficient architecture,” says Nanda Badrappan, Deputy Chief Technology Officer at Temenos.

“Deploying Temenos software on Azure Kubernetes Service with rolling updates, we’ve built resilience and performance directly into our platform. This cloud‑native architecture enables seamless scaling and supports accelerated innovation across our banking services.”

Nanda Badrappan, Deputy Chief Technology Officer, Temenos

Temenos used Azure SQL Database Hyperscale as the foundation for Temenos Core, to provide independent scaling of compute and storage, high‑throughput ingestion for large datasets, near‑instant backup and restore, named replicas for read‑intensive operations, and managed resiliency. Temenos Core delivers consistent performance across billions of daily transactions. “Microsoft Azure has a global presence to support native managed services,” says Badrappan. “Azure SQL Database Hyperscale enables us to scale with resilience.”

Temenos also adopted Azure Kubernetes Service (AKS) to enable automated recovery and real‑time scaling, for maximum uptime. This cloud‑native approach evolves how core banking software is delivered, maintained, and regulated. “Deploying Temenos software on Azure Kubernetes Service with rolling updates, we’ve built resilience and performance directly into our platform. This cloud‑native architecture enables seamless scaling and supports accelerated innovation across our banking services,” says Badrappan.

For consistent performance, Temenos rigorously tests Temenos Core using real transaction workloads on Azure, in collaboration with Microsoft and its SQL Engineering team.

Unlocking scalable, trusted banking

Temenos Core acts as the system of record for balances, while enabling payments, lending, and reporting. The platform delivers predictable throughput, faster recovery through platform level resiliency, and lower total cost of ownership through elastic scaling and automated lifecycle operations.

Temenos Core’s cloud native design gives banks of all sizes the flexibility to scale capacity, services, and throughput while maintaining high availability and resilient operations. In 2025, Temenos Core processed more than 17,500 banking transactions per second during peak demand. The platform supports up to 99.99 percent channel transaction efficiency. Badrappan says, “Temenos Core is powered by Azure SQL Database Hyperscale, which supports database sizes of up to 128 terabytes. Our customers get the processing speed and architectural flexibility to future-proof core banking processes without re-platforming for growth.”

The company is re-platforming its Loan Management System on Azure SQL and adding new customers, with a 27-percent reduction in onboarding time. Standardized cloud architecture accelerates deployment; Temenos has already migrated more than 50 customers using the Microsoft Cloud Adoption Framework and is preparing to scale this model to 600 additional customers. Environment provisioning is 2.5 times faster [with the Microsoft Cloud Adoption Framework], and Temenos can launch 3 times more new retail products annually.

In future, the company plans to consolidate data sources with Microsoft Fabric to combine core banking, payments, and compliance into a single environment. This solution will power real-time risk analytics and customer behavior models to support reduced fraud and improved experience.

Meanwhile, Temenos Core is helping banks transform. “We’ve moved banks from fear of downtime to a scalable, resilient, and highly available platform,” says Badrappan. “With Azure SQL Database Hyperscale, the focus has shifted from outages to digital adoption, innovation, and proactive engagement. Availability and resilience have become part of banks’ value propositions, not just an operational requirement.”

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