I believe the financial institutions in the pan Asian Pacific region are not switching to cloud as quickly as people hoped. They are worried that the benefits are not all they are cracked up to be. As such, businesses (in particular financial businesses) have decided to take what has been described as a measured approach.
The news comes from a recent report compiled by IDC Financial Insights, with a spokesperson telling moneycontrol.com: “The financial services industry, typically an early adopter of technology, has been uncharacteristically slow to take on 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.”
Interestingly 45% of financial companies across the Asian Pacific region do use some form of web-based solution, and are willing to move away from the traditional computer/software paradigm. However, it is still a painfully slow process to convert the whole of this sector.
Analysts are also unsure why?
The answer may lie in the fact that much of the IaaS systems operating at the moment are public whereas it seems financial institutions want better development of private cloud infrastructure.
This is perhaps understandable given the nature of the business sector. So, while lower costs are the major benefit for any company switching away from their in-house IT systems, in the case of the financial sector, low costs is not the primary motivator.