Leading US commercial bank Capital One has publicly announced that it is leveraging AWS public cloud to reduce the number of data centers from eight in 2014 to three in 2018. DBS Singapore plans to move up to 50% of its compute workload to the cloud by 2018.
While cost efficiency remains a key driver for cloud adoption, enterprises and banks are now also realizing the benefits of increased agility, faster time to market for new solutions, and ease of automation in the cloud. In 2018, banks will look beyond cost efficiencies and increasingly see cloud as an enabler of business. The degree of adoption of cloud by large and progressive banks such as Capital One and DBS indicates the alleviation of apprehension around public cloud, and the willingness of banks to go beyond moving peripheral systems like HR and procurement to migrating their core systems onto cloud. The maturity of the cloud environment and the shift in regulatory approach towards cloud are the key tailwinds for the increased adoption of cloud in banks and enterprises. Technology leaders such as GAFA, and enterprise IT giants such as Oracle, IBM and Microsoft have had a huge role to play in this journey to the point of maturity it enjoys today. Secondly, traditionally hesitant regulators are now reducing barriers and providing guidelines for enterprises to adopt cloud. Cloud service providers such as AWS are also working with regulatory bodies across the world to help move the needle on cloud adoption among their member organizations. Banks are now looking to experiment with new public and private cloud arrangements.
What’s more, the changing face of banking in the world of APIs and fintechs stands to gain immensely with the flexibility to public cloud. Banks can accelerate their innovation efforts by moving their sandbox environment to public cloud, and can ensure seamless integration with FinTechs and third party APIs in the digital ecosystem.
Today the key question CIOs get asked is not if their bank is moving business to cloud, but how much workload they are moving to cloud. The level and magnitude of cloud adoption is increasingly becoming indicative of an enterprise or bank’s bottom line.
Cloud began as a transformative model in IT and has come a long way. It will be central to the adoption of emerging technologies and in an enterprise’s play in digital ecosystems at large in 2018 and beyond.
Read the full report here – #ReimagineBanking – 10 Strategic and Technology Trends to Watch Out for in 2018