BENGALURU: Hybrid cloud is the only IT model showing positive growth among financial companies, and is expected to grow 39% in 5 years, according to Nutanix’s third annual Enterprise Cloud Index report for financial services.
The findings point to a digital transformation within the industry, with half of the respondents reporting that covid-19 led them to increase their investment in hybrid cloud.
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In addition, 43% of financial services companies plan to increase their investment in private cloud over the next year, underscoring the fact that private cloud adoption is crucial to creating a modern hybrid cloud.
“India’s BFSI (banking, financial services & insurance) sector is tackling a growing number of challenges as digital technologies, digital startups and changing customer expectations force the industry to adapt and respond,” said Balakrishnan Anantharaman, managing director, Sales – India, Nutanix. “Despite these challenges, we are witnessing the sector implement various initiatives designed to take advantage of today’s digital economy.”
Recently, Future Generali India Life Insurance Company Limited (FGILI) used a combination of private and public cloud capabilities through Nutanix Enterprise Cloud OS, which enabled the company to support 30% year-on-year growth, Anantharaman said.
The financial services sector’s top motivations for modernising its IT infrastructure are to gain greater control of IT resource usage (59%), and to gain the speed (58%) and flexibility (55%) needed to meet business requirements.
About 62% of financial services companies ranked security, privacy, and compliance as top concerns when running applications within public cloud solutions. Respondents were less concerned with public cloud capacity (30%), indicating 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.
More than a third of financial services respondents (36%) said they are 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 organizational struggles to fully adopt hybrid cloud.