When you go to a store to buy anything, it is obvious that you will look for variety. If there is only product available and you have no choice, it is natural you will be upset. When businesses want to move to the cloud, they see only option that is the public cloud observed by Bahaa Abdul Hussein.
This is not due to lack of options, but due to tunnel vision on the part of businesses. They only see one option when in reality there are many options available. Tunnel vision is a problem affecting many sectors, especially the banking sector.
Tunnel vision in banks and financial services
While the cloud adoption is increasingly rapidly in almost every sector, the performance of banking and financial sector is not up to the mark. Compared to other sectors, they are around 10% behind. 59% of organizations in this sector are not on the cloud. This data for other sectors is 40%.
Very clearly, financial services firms and banks have a lot of catching up to do for cloud migration. While security and privacy have been raised as concerns, the real issue is the tunnel vision where they only see the public cloud.
The cloud is not the destination
It is important to note the cloud is not the destination. The cloud is a tool that helps businesses get to their destination. There is a belief that moving to the cloud is arriving at the final destination where transformation occurs magically.
It is time that organizations realize the cloud is a tool that they need to use wisely to reach their destination. There is no one size fits all scenario in cloud migration. Each organization has to make its decision based on various factors. Apart from the public cloud, the private cloud is also a factor to keep in mind.
When there are robust policies for security and governance in place, then the transition to the cloud happens seamlessly. This will allow financial services firms to move ahead on the transformation path.
The path is clear, a hybrid model is what is becoming universally popular. A mixture of public and private cloud would help meet the requirements of the financial sector. This trend is likely to take off and help organizations make the transition easily. It is expected that over the next 3 years cloud adoption would grow from 26% to 56%.
Financial organizations have the flexibility to choose from different options and they need to make the choice wisely to achieve their goal of transformation. Thank you for your interest in Bahaa Abdul Hussein blogs. For more stories, please stay tuned to www.bahaaabdulhussein.com
