The financial services industry is at the front of critical sectors which would see the most benefit to cloud computing disruption, according to G42 Cloud chief executive.
Talal Al Kaissi is not the only executive or business analyst that sees the financial services as the sector most in-line for cloud disruption, and the writing is on the wall in some ways, with financial businesses which have already embraced cloud-based technologies reporting higher than expected growth, performance, and future outlook.
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“In terms of industries that can actually have a multiplied effect from the cloud, financial services is very big, because it’s very ripe for disruption,” said Kaissi, at the Gitex Technology Week in Dubai. “The elasticity that the cloud provides gives it an edge versus an on-premises solution.”
Financial services that have embraced cloud-based technology, such as Stripe, Checkout.com, Ayden, and Block Inc, are at the forefront of the financial space, with incumbents struggling to keep up with the pace of innovation and failing to provide users with the next-generation of financial services.
Having a foothold in this race, especially at a time of rapid innovation, could be very lucrative for the winners. According to Grand View Research, the global finance cloud market is expected to reach a market size of $105 billion by 2030, with a compound annual growth rate of 20 percent from 2021.
One of the reasons incumbents give for failing to adopt cloud-based technology is the security and privacy risks inherent with public cloud services. G24 Cloud’s Kaissi does not see this as a major issue: “Security isn’t that much of an issue, if you are able to get people to embrace the concept of the cloud and understand its benefits versus an on-premises site.”
The benefits of shifting to a cloud-based solution are numerous and apply to many industries. It is one of the key reasons we are seeing a multi-industry shift to hybrid cloud computing, as everyone from manufacturers to hospitals to banks see the value of shifting some of their operations to the cloud.
“Cloud architecture eliminates the data storage management problems that plagued pre-cloud infrastructure,” said iTechArt cloud computing reporter, Thomas Morgenroth. “Cloud computing in banking in particular means faster and easier access to data for regulatory reporting, risk mitigation, analytics, deep learning, and discovering risk management anomalies.”
Finance leaders are looking for the benefits that come from cloud computing, including better forecasting through real-time data analytics and insights. The ability to be more agile, through a modern data strategy, has also been highlighted by finance CEOs.
Even though there has already been lots of innovation in the industry, there is still value to shifting to a cloud-first strategy. Organizations just starting their cloud journey also have the additional value of being able to see past use cases, and work to build a more coherent cloud strategy that avoids the mistakes of the past.
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