Study Shows Financial Services Organizations Are in Early Stages of Multi-Cloud Adoption
Research finds hybrid multi-cloud is the ideal IT model, but the financial services industry is slower to adopt.
Nutanix, a leader in multi-cloud hybrid computing, announced the financial services results of its 2022 Enterprise Cloud Index (ECI) global survey and research report, which measures enterprises’ progress with cloud adoption across the enterprise. ‘industry. The study showed that fewer financial services organizations have adopted multi-cloud than any other industry surveyed, 10% less than the global average. However, adoption is expected to nearly double from 26% to 56% over the next three years, in line with the global trend towards a multi-cloud computing infrastructure that spans a mix of private and public clouds. .
Among respondents to the financial services CIS, 31% still operate non-cloud-enabled three-tier data centers as their sole IT infrastructure. They also said they have the lowest deployment of any industry surveyed in public cloud usage, with 59% not using any public cloud service vs. 47% globally, likely due to large legacy investments. existing in applications and the highly regulated nature of the industry.
The complexity of managing beyond cloud boundaries remains a major challenge for financial services organizations, with 84% of respondents agreeing that success requires easier management across multi-cloud infrastructures, and 50% citing issues security as a challenge for the multi-cloud model. To address key security, interoperability and data integration challenges, 82% agree that a hybrid multi-cloud model, an IT operating model with multiple private and public clouds with interoperability between them , is ideal.
“Information security and operational resilience remain at the forefront for financial services organizations in the Middle East. As such, they should look to hybrid multi-cloud solutions with built-in manageability and security, and the ability to quickly move applications between cloud infrastructures in a cost-effective manner,” said Omar Malaeb, Regional Sales Manager , Enterprise at Nutanix.
Respondents to the financial services survey were asked about their current cloud challenges, how they currently run business and mission-critical applications, and where they plan to run them in the future. Respondents were also asked about the impact of the pandemic on recent, current, and future IT infrastructure decisions and how IT strategy and priorities might change because of it. Key findings from this year’s report include:
- Financial Services Organizations Face Multi-Cloud Challenges, including security (50%), cloud data integration (46%), and performance issues related to network overlays (43%). With nearly 78% citing a lack of certain IT skills to meet current business demands, simplifying operations is likely to be a key focus in the coming year. However, IT leaders are realizing that there is no one-size-fits-all approach to the cloud, which makes hybrid multi-cloud ideal according to the majority of respondents (82%). This model will help address some of the key challenges of multi-cloud deployments by providing a unified cloud environment on which data security and governance policies can be applied uniformly.
- Application mobility is a priority. Almost all financial services respondents (98%) have moved one or more applications to a new computing environment in the past 12 months, likely from traditional data centers to private clouds, given the relatively low penetration of multi- cloud and public cloud in the industry. Faster application development (43%) was most often cited as a reason for the move, followed closely by security (42%) and integration with cloud-native services (40%). Additionally, with a large majority (83%) agreeing that moving applications to a new environment can be time-consuming and costly, container adoption is expected to grow as multi-cloud deployments enable applications to run and move nearly anywhere quickly and easily. Among financial services respondents, 86% said containers will be important to their organization in the next year.
- Top Financial Services IT Priorities for the Next 12-18 Months include improving security posture (54%), improving multi-cloud management (49%), and developing and/or implementing cloud-native technologies (47%). When asked what their organizations have done differently due to the pandemic, 70% said they have increased spending to strengthen their security posture, 64% have spent more to increase self-service automation based on AI and 64% invested in infrastructure upgrades.
For the fourth consecutive year, Vanson Bourne conducted research on behalf of Nutanix, surveying 1,700 IT decision makers around the world in August and September 2021. This report complements the Fourth Annual Enterprise Cloud Index global main report and focuses on cloud deployment and planning trends in the financial services industry, based on responses from 250 IT professionals at banks and insurance companies around the world. It compares these organizations’ cloud plans, priorities, and experiences to other industries and the global response base as a whole.
Click below to share this article