The migration of on premise banking applications to private and public cloud deployment has been underway for over a past decade.Early migrations were generally smaller and easier horizontal software applications shifting to software-as-a-service (SaaS) deployment.During the past five years financial institutions (FIs) are increasingly migrating front-, middle-, and back-office solutions to the cloud, which brought both the intended flexibility to deploy solutions faster but also great cost and complexity as financial institutions become combined on premise/off premise hybrid cloud operators. It is time to recalibrate and reexamine this new hybrid cloud world.

According to a 2023 Celent survey of financial institutions, the pace of cloud adoption continues to increase. Celent surveys indicate that FIs globally (led by Europe and the Asia-Pacific regions) are moving more applications to the cloud at a faster rate to realize faster customer sales growth, cross-sell, and retention goals.

Celent’s latest report on cloud computing in banking:

•Examines recent and planned global region migration from on premise to cloud deployment.

•Estimates the relative migration of front-, middle-, and back-office banking applications from on premise to cloud deployment.

•Evaluates how cloud deployment costs are evolving and increasing in areas that help integrate and manage remaining on premise applications with cloud apps.

•Emphasising the critical role of application modernization and the relative benefits of simply rehosting applications versus rearchitecting or rebuild applications to take full advantage of cloud efficiencies.

•Outlines the rapidly-growing vendor ecosystem that is enabling FIs to create and manage the growing on-premise, off-premise hybrid cloud world.