A new Aite Group report finds that as cloud-technology skills within the industry mature, firms will begin to push more mission-critical systems into cloud environments.
Aite Group’s latest report, Cloud Adoption in Capital Markets: A Far From Fluffy Subject, explores the complexity of the technology and operational environments in which capital markets firms exist, and its continual increase due to ongoing regulatory and market practice changes. C-suite executives are therefore constantly seeking to keep operations lean and to gain an edge over their competitors by adopting new technologies and making better use of the assets at hand. Legacy technology environments do not mix well with innovation; hence, cloud-hosted environments have come into the frame over recent years.
“Though the industry has seen some fast movers, as a whole it has been a slow burn for capital markets’ adoption of cloud. The pace of adoption has not been helped by the specter of cybersecurity risk that has plagued all corners of the markets and the post-2008 resource drain caused by a rising tide of compliance requirements,” states Virginie O’Shea, research director at Aite Group. “However, many of these pressures have also helped executives build the business case for cloud, which has created a tipping point for adoption in key functional areas. A lot of initial concerns within the industry about cloud are dissipating as the mystique has gone, and many firms have already deployed their human resources, development and testing environments, and email systems in the cloud,” she explains.
Based on conversations with executives with knowledge of their firms’ cloud technology adoption strategies at 21 global capital markets firms and a range of vendors servicing those markets, this report explores adoption drivers and how firms have built business cases to invest in private, public, and hybrid cloud initiatives. It highlights lessons learned along the way and the level of adoption within various functional areas of the capital markets.