Financial Services CIOs in APAC Yet to Ride the Cloud Wave
According to a recent report by IDC Financial Insights, financial services companies in Asia Pacific are yet to embrace cloud computing in a big way. The report titled: “Perspective: A Slow Ascent Toward the Cloud for Asia/Pacific Financial Services,” revealed that the key reasons behind this slow adoption is that CIOs/IT managers of this sector are looking for more clarity on cloud computing regulations and better assurance from IT vendors regarding the business benefits of this emerging technology.
“The financial services industry, typically an early adopter of technology, has been unexpectedly slow to take on to cloud. There is still no wide-scale adoption of the technology, despite considerable resources allocated by vendors to ensure that their offerings scale up and become more mature,” said Michael Araneta, Associate Consulting and Research Director, IDC Asia Pacific.
Regulation has been cited as one of the biggest impediments of cloud computing among financial CIOs/IT managers. Araneta noted that even though cloud technology has its share of advantages such as ease and speed of deployment and lower cost, the stringent regulatory guidelines have been a dampener for financial companies in this region.
The report, based on a series of surveys undertaken by IDC Financial Insights noted that only about 45 percent of financial institutions across the key markets in Asia Pacific (Australia, China, India, Malaysia, New Zealand and Singapore) have adopted some form of cloud computing services.
The survey indicated that 62.5 percent of the respondents stated that there was no clarity on the regulations pertaining to cloud computing. Araneta believes that for cloud to gain momentum, there needs to be a greater clarity on regulations concerning cloud computing.
However, on a brighter note, some changes in the policy are expected to take place in the next two years and this will facilitate the adoption of cloud technologies within this segment. Nearly 51.7 percent CIOs/IT managers of financial services companies expect that regulations on cloud computing will be more transparent in the next two years.
The IDC report indicated that 66.1 percent respondents perceive cloud computing mainly as an IT issue, without realising its business benefits. Whereas cloud computing has the potential to deploy capabilities more efficiently and results in lower cost to companies.
According to Sui-Jon Ho, Market Analyst, IDC Financial Insights Asia Pacific, for cloud computing to gain traction, CIO/IT managers of financial institutions like banks and insurance companies should think beyond the technical breakthroughs of cloud computing and see how it helps them in running their business.
This means that an organisation should be able to define robust metrics for measuring the performance gained from cloud deployments, thereby allowing internal users to manage their objectives. “Such propositions must be conveyed in a non-technical language so that the various stakeholder groups can understand. Most importantly, they should also understand the organisation’s pain points that can be addressed by the cloud,” concluded Ho.
Tags: IDC Financial Insights, financial services companies, cloud computing,
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