For several years, interest in cloud adoption has been growing among financial services firms. 2017 looks to be a strong year for growth with Wall Street firms in particular. This week’s FIN News Alert highlights the Markets Media article, “Wall Street Looks to Cloud,” and shares insights on how cloud adoption is growing in financial services in 2017.
Here are the key takeaways:
- Cloud migration is growing in financial services. In 2016, Gartner projected that more than $1 trillion in IT spend will be directly or indirectly affected by cloud over the next five years.
- Challenges are still present with cloud adoption, mostly because data has been managed via onsite hardware for decades and because of concerns about security, interoperability and business continuity.
- The business-optimizing advantages of cloud, such as agility and flexibility, are leading to an uptick in cloud adoption.
- Experts agree: “The importance of cloud computing cannot be overstated,” says Manoj Narang, founder and chief executive officer of MANA Partners, a quantitative trading and financial technology firm. He adds that cloud adoption is very appealing to a startup with brand new infrastructure — fewer legacy tech roadblocks.
- For firms with existing infrastructure, it can be painful to switch to cloud, but a strong porting migration strategy can be helpful.
- Financial services’ migration to the cloud is in its early days and may take some time, but will continue to grow.
Want to read more about trends impacting banks and credit unions? Our winter issue of the FinTalk Report shares the latest IT insights for the financial services industry.