Study shows financial services organisations’ push towards hybrid cloud model is built on private cloud investments
Forty-three percent of financial services companies globally plan to increase their investment in private cloud over the next year.
Nutanix (NASDAQ: NTNX), a leader in private cloud, hybrid and multi-cloud computing, today announced the financial services industry findings of its third annual Enterprise Cloud Index Report, measuring organisations’ plans for adopting private, hybrid and public clouds. The findings point to a digital transformation within the industry, with half of respondents (50%) reporting that COVID-19 caused them to increase their investment in hybrid cloud.
In the industry’s five-year outlook, hybrid cloud is the only IT model showing positive growth among financial company respondents, and it is expected to increase by 39% in that timeframe. In addition, 43% of financial services companies plan to increase their investment in private cloud over the next year, 10% higher than the global average (33%) – pinpointing that private cloud adoption is crucial to creating a modern hybrid cloud.
Other key findings of this year’s report include:
- Security concerns are driving private cloud adoption: Financial services organisations ranked security, privacy and compliance issues as the most concerning when running applications within public cloud solutions (62%). Respondents were less concerned with public cloud capacity (30%), showing that while public cloud has the capabilities to support IT infrastructures, the security of sensitive data is non-negotiable and organisations are looking for alternative solutions.
- Investment in hyperconverged infrastructure shows the industry’s confidence in private cloud: Nearly 50% of financial sector respondents say they’ve either fully deployed HCI or are in the process of doing so, while 38% report they will be deploying HCI within the next 12 to 24 months. This investment is directly aligned with increased private cloud adoption, as HCI reduces the time it takes to build the software-defined, scalable infrastructure necessary to support private cloud.
- Financial services organisations are looking to optimise their cloud usage: The sector’s top motivations for modernising its IT infrastructure is to gain greater control of IT resource usage (59%) and to gain the speed (58%) and flexibility needed (55%) to meet business requirements.
- The industry must invest in talent to support a hybrid cloud environment: More than a third of financial services respondents (36%) said they were short on skills needed to manage mixed private/public cloud environments, while 34% said they lacked expertise in cloud-native technologies and containers, including Kubernetes. These issues have contributed to organisational struggles to fully adopt hybrid cloud.
“Historically, financial services organisations have explored public cloud offerings when decommissioning legacy data centres,” said Tapan Mehta, Director, Industries Solution Marketing at Nutanix. “However, as the industry continues to place greater interest in data privacy and compliance issues, organisations are turning to the private cloud. This rapid increase in private cloud adoption serves as the basis for a hybrid cloud model, which is expected to become the industry norm over the next few years.”
The 2020 respondent base spanned multiple industries, business sizes and the following geographies: The Americas; Europe, the Middle East and Africa (EMEA); and the Asia-Pacific (APJ) region.
To learn more about the financial services findings, please download the report here https://bit.ly/3oJgvRd.
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