Nutanix, a leader in a private cloud, hybrid and multicloud computing, 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.
Hybrid cloud is the only IT model showing positive growth among financial company respondents in the industry’s five-year outlook, and it is expected to increase by 39% in that timeframe. Also, 43% of financial services companies plan to increase their investment in a 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 hyper-converged infrastructure shows the industry’s confidence in the 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.
“Malaysia’s financial services industry is digitising rapidly, driven by competitive new market models, commercial objectives, and customer expectations. This has given rise to new players that are building their business models on the foundation of agility, innovation, and speed. And as a result, older organisations are playing catch up to transform for the new business reality; cloud infrastructure can help them get ahead.
“Traditional FSIs are also typically cautious, with larger legacy investments and more established reputational risk exposure, and thus adopt a private cloud approach for data security. However, FSIs can look to a hybrid cloud infrastructure to truly gain a competitive edge — and we have seen great results with our local customers across the government and financial services sectors, including MaxMoney and Tranglo, who have to conform to local regulatory requirements. Hybrid cloud delivers the benefits and convenience of the public cloud and the security of a private cloud, without compromising on efficiency and cost. With this, financial companies will be empowered to move applications across clouds with ease and gain greater control of their IT spend, while remaining confident in the security of their data,” said Avinash Gowda, country manager, Nutanix Malaysia.