Financial institutions around the world have, so far, remained on the cloud sidelines, as security, regulatory, and cost factors, among other things, forced them to take the ‘wait and watch’ approach. But if things go per IDC’s research report, financial institutions’ current attitude towards, and perception of, cloud adoption could change forever.

IDC, a global leader in market research, says that the majority of banks in Asia Pacific are in the early stages of cloud adoption, and prefer enterprise private cloud over public cloud.

IDC analysts also say that nearly 80% of banks in the region will run on hybrid cloud architecture by 2018.

“With growing regulatory support for cloud and the intensifying competitive pressures forcing Asia/Pacific banks to look at what cloud can offer in terms of cost take-out and quicker go-to-market, cloud adoption will scale up this 2017. IDC sees a group of 20 Asia/Pacific banks that are effectively cloud-first in architecture. Early adopters will enjoy cost take-out of up to 20% between now and 2019.” – Michael Araneta, Associate Vice President for IDC Financial Insights Asia/Pacific.

Sneha Kapoor, Senior Research Manager for IDC Financial Insights Asia/Pacific, adds:

“Banks will need to identify which assets, infrastructure, and applications can first move to cloud. Application owners from the business must work with IT to put a lens on workloads, data, and systems, and look for those that are already tuned for cloud and the implications that the migration to cloud will have on business objectives,” adds Sneha Kapoor, Senior Research Manager for IDC Financial Insights Asia/Pacific.”

You can read the full IDC press release here.

Hybrid cloud does make a lot of sense for financial institutions because it gives them more control over their IT operations, simultaneously bringing the benefits of cloud to the table. There will be technological issues to overcome, but big companies would rather take that challenge than plunge deep into public cloud and worry about vendor-lock in, costs, data sovereignty, regulations and security.

The incremental yet milestone achievements of companies like IBM and Microsoft – in getting the banking and financial services segment around the world to adopt hybrid cloud as a viable option to self-managed infrastructure – appear to be yielding results.

For a more detailed view, please review this article:

Will Big-money Financial Services Cos Lead the Next Cloud Computing Wave?

Thanks for reading our work! We invite you to check out our Essentials of Cloud Computing page, which covers the basics of cloud computing, its components, various deployment models like hybrid cloud, historical, current and forecast data for the cloud computing industry, and even a glossary of cloud computing terms.

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