US Financial Industry Seeks New Ways to Move to Cloud
US financial firms are embracing cloud for its multitude of benefits. With cloud technologies improving over the years and systems being specifically built for cloud adoption, many financial companies are transferring data onto the public cloud. The risk factor associated with moving data into cloud risk is slowly reducing, thanks to the progress of cloud services.
Leading technology companies like Amazon, Microsoft and Google have played a key role in making cloud technologies more accessible to worldwide firms. Cloud has the potential to reduce project costs substantially and to make processes cheaper and faster. Innovation in the digital era is also driving financial firms and regulators to explore major cloud trends. With cloud gaining an industry-wide focus; it is clear now that financial companies want to solve the challenges involved in Cloud adoption. Companies are looking for ways to replace their dated server-filler warehouses with new processes, products and services built around the cloud.
"You can't just say if you use Amazon you get the magic cloud sauce and everything will work perfectly," said Yevgeniy Brikman, the co-founder of Gruntwork, a startup that helps big companies deploy cloud services. "
IDC has come up with a report which shows how global banks are preferring clouds over their old technologies. The cost savings these firms have made because of cloud are in the numbers of billions. IDC also predicts more and more financial firms will be moving to cloud by the end of next year.
Cloud can help reduce the time it takes to launch applications from 89 days to 15 days, according to consultancy McKinsey & Company. JPMorgan Chase (JPM), Goldman Sachs (GS), Capital One(COF) and Liberty Mutual Insurance (LIBC) are some of the companies that have already opened up great opportunities by harnessing cloud technologies. Also in the list are leading financial firms such as Nasdaq (NDAQ), The Depository Trust and Clearing Corporation (DTCC) and the Financial Industry Regulatory Authority (FINRA), State Street (STT).
Amazon is still the undoubted leader of cloud as it own up close to 40% of public cloud business, as per a Synergy Research report. The Cloud market totaled $7 billion in the fourth quarter, and is growing at an annual rate of 50%.
"The capability and flexibility to recover quickly is much greater, and it is far more cost-efficient than operating your own geographically dispersed data centers," said spokesman Ray Pellecchia.