Finding the Right Model for Cloud Adoption in Banking
The public cloud has made a steady and significant impact on retail banking as institutions look to innovate and keep up with new market entrants setting the standard for digital engagement. For many years risk-aversion slowed the pace of migration, but the business case is becoming clearer as market drivers increasingly favour cloud computing. Whichever of the cloud deployment approaches discussed above is taken, adopting cloud today will require tracking continuously evolving technology capabilities and adapting quickly as cloud computing continues to evolve.
Cloud migration is a common thread across all of the most modern digital financial institutions globally. Cloud investments are being made, and FIs in the vanguard are well on their way to cloud maturity. They will likely end up in a multi-cloud environment with a combination of on-premises, public and hybrid operating seamlessly together. While each approach will depend on a bank’s strategy, an institution should be making moves today to increase its public cloud footprint and migration strategy.
This Celent research report is targeted at both the digital business executive and the IT department. We present Celent research results on the pace of cloud adoption, the different types of cloud deployment, cloud computing service characteristics, external technology trends and internal financial institutions strategies, cloud use cases, and cloud migration strategies.
A sample of key report takeaways (more in the report):
Cloud computing is now mainstream for many types of banking software such as customer engagement via software as a service (SaaS). In addition, new SaaS offerings in new product areas such as core banking systems (CBS) are now available and adoption is growing
Cloud deployment via platform as a service (PaaS) and infrastructure as a service (IaaS) is small but growing as new offerings enter the market and the ROI for outsourcing hardware and software development and maintenance continues to grow.
While there are many paths a bank can take in the move towards public cloud, what’s clear is that most institutions are putting cloud migration front and center. Going forward, we expect banks will increasingly adopt various cloud models, and our objective is to help them better understand each model to make the best decision.