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Financial services sector pushing hybrid cloud usage more than ever

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(Image credit: Shutterstock / Blackboard)

The financial services sector is pushing hybrid cloud usage more than ever, a new report from Nutanix states.

The company’s third annual Enterprise Cloud Index Report claims that financial services firms expect hybrid cloud to be the only IT model to show positive growth within half a decade. It is expected to grow by 39 percent during that time.

Furthermore, almost half (43 percent) of financial services companies are planning extra investments into the private cloud over the next year, which is 10 percent higher than the global average. According to the report, private cloud adoption is crucial for the creation of a modern hybrid cloud infrastructure.

It was said that Covid-19 was the main catalyst for increased interest in hybrid cloud solutions. Financial institutions are wary of public clouds due to issues such as security, privacy and compliance, rather than issues such as cloud capacity.

By contrast, the are confident in private cloud solutions, as shown by investment in hyperconverged infrastructure; almost half of respondents reported either full or partial HCI deployment. Almost four in ten, meanwhile, said they would deploy HCI within the next two years.

This investment is directly aligned with increased private cloud adoption, the report concludes, as HCI reduces the time it takes to build the software-defined, scalable infrastructure necessary to support private cloud.

“Historically, financial services organizations have explored public cloud offerings when decommissioning legacy datacenters,” said Tapan Mehta, Global Head, Industry Strategy and Solutions at Nutanix.

“However, as the industry continues to place greater interest in data privacy and compliance issues, organizations are turning to the private cloud. This rapid increase in private cloud adoption serves as the basis for a hybrid cloud model, which is expected to become the industry norm over the next few years.”

Sead Fadilpašić

Sead is a freelance journalist with more than 15 years of experience in writing various types of content, from blogs, whitepapers, and reviews to ebooks, and many more, across sites including Al Jazeera Balkans, TechRadar Pro, IT Pro Portal, and CryptoNews.