Compliance and security concerns are preventing businesses in the finance and insurance industries from fully embracing cloud solutions (opens in new tab).
This is according to a report from data protection firm Veritas Technologies, which states that organizations in these industries are met with heightened pressure from competitors and regulators - as well as their own customers.
More than four in five (84 percent) cited security as their main concern when it comes to adopting public cloud technology, followed by stringent regulatory requirements (52 percent). Nine in ten, meanwhile, agree legislation and regulation makes data management even more challenging.
Just a fifth (21 percent) of respondents believe their business can back up all workloads with equal efficiency, and almost all struggle with scalability, even though they do think the process is achievable.
But despite all the issues, these firms continue to forge ahead. Almost half of all organizational data is now stored or managed in the public cloud, with IT decision-makers in the aforementioned industries expecting this figure to hit almost 80 percent within half a decade.
“Cloud service adoption (opens in new tab) is increasingly likely for most industries, and finance and insurance is no exception. Yet, the need for hybrid- and multi-cloud technology is tempered by fear of what might happen if something goes wrong,” said Ian Wood, Senior Director and Head of Technology at Veritas Technologies.
“Arguably, these fears are holding these institutions back from technical advantage that could see them matching and exceeding the abilities of their younger and more agile competitors.”
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