It can now be stated with empirical certainty that enterprise cloud adoption is more practice than prediction. There has been an average 10% increase in the number of companies using at least one cloud platform, and an estimated 60% of enterprises are now integrating cloud spends into overall IT budgets. In 2014, spending on cloud software, services and infrastructure will exceed USD 100 billion.
The banking sector, thus far held back by warranted concerns about security and reliability will get in on the game in 2014. By 2016, more than 60% of all global banks are expected to process a majority of their transactions on the cloud. More than two thirds of banking executives who participated in a recent study indicated plans to increase investments in cloud computing.
Now, rising security and reliability standards in the cloud ecosystem are definitely helping to heighten interest among banks. In 2014, banks, who thus far preferred the relative safety of private clouds, are expected to scale their operations into the public cloud domain. This move is also in line with the prediction that by 2017 at least half of all enterprise cloud systems would be hybrid.
But there are also significant competitive considerations behind the shift to cloud. Firstly, the cloud allows banks to redress the legacy IT drag without having to commit to huge upfront capital investments. Secondly, it enables access to best-in-class technology systems and services so that traditional banks can match wits with the new more technologically adept competition. Thirdly, the cloud is almost critical to banks’ ability to cater to the demands of digital customers and their preferred touch points. And finally, banks need the versatility and agility of the cloud to succeed in an age characterized by data-driven decision making.
Also read our blog on the Big data as a banking trends