Report paints mixed picture of cloud and financial services • The Register

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A report on cloud adoption in international banking shows that despite a large appetite for cloud services, only about a third of banks have migrated more than 30% of their applications.

The The Future of the Cloud in Banking report found that the majority of retail and commercial banks aim to triple their use of cloud services by 2025 and migrate more customer-facing applications and data. However, the usual security concerns, a lack of cloud skills, and a lack of understanding of the benefits of the cloud would hold back some adoption.

The report comes from Publicis Sapient, a digital transformation company, and was compiled in collaboration with Google Cloud. The State of Play findings are based on a survey conducted in September and October 2021 of 250 retail and commercial bank executives across EMEA, North America and APAC.

According to the authors, banks can be divided into three groups – Cloud Leaders, Cloud Followers and Cloud Conservatives – based on their attitude towards cloud adoption. However, the ambition to increase the use of the cloud is common to the three groups.

Only cloud leaders have more than 30% of their applications in the cloud, and this group tends to value the business benefits of cloud-based transformation more than cloud conservatives, for example, who turn consider cost reduction as the main objective. for cloud adoption, driven by their finance and technology teams.

These business benefits cited by cloud leaders include an increased ability to innovate rapidly, apply advanced analytics, and transform operational and business models.

There are regional differences here, with only 29% of North American banks saying they see advanced analytics as a benefit of the cloud, while the figure for EMEA is 40% and 58% in APAC. .

Similarly, about 60% of banks in North America plan to increase their cloud investments over the next three years, with the figures for EMEA and APAC being 82% and 83%, respectively.

The report finds that the clear gap between ambition and execution is the biggest barrier to cloud transformation, with only 44% of survey respondents indicating that their bank’s business leaders understand the opportunities in the cloud. cloud.

“Despite the lack of progress in some areas, 68% of banks believe they are ahead of the competition when it comes to innovation. This suggests a certain level of complacency,” commented Jan-Willem Weggemans, Head of Cloud practice at Publicis Sapient.

Respondents also expressed concern about the lack of timeliness and not seeing the full benefit of existing investments due to security concerns and a lack of qualified people to drive implementation.

Meanwhile, a separate report from cloud and hyperconverged infrastructure company Nutanix claims that financial services organizations are lagging behind other industries in adopting a multi-cloud strategy that spans a mix of clouds. private and public, 10% behind the world average.

The conclusions, which come from his Enterprise Cloud Index 2022 (ECI), say adoption is expected to nearly double from 26% to 56% over the next three years.

“While the financial services industry appears to be in the early stages of deployment, the evolution towards an interoperable multi-cloud computing infrastructure that spans a mix of private and public clouds is underway,” said Anand Akela, vice president product and solution marketing at Nutanix. .

The survey was conducted by Vanson Bourne and involved 1,700 IT decision makers from around the world in August and September 2021.

Nutanix said 31% of financial services in its survey still operated non-cloud-enabled three-tier data centers as their sole IT infrastructure. A startling 59% said they still don’t use any public cloud services, which Nutanix attributes to substantial existing investments in applications and the highly regulated nature of the industry.

As always, security issues are cited as a barrier to multi-cloud adoption by 50% of respondents, with cloud data integration and network overlay performance issues also listed.

According to Nutanix, the top IT priorities for the next 12-18 months for financial services companies are improving security posture, improving multi-cloud management, and developing and/or implementing native cloud technologies. ®

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