Financial companies abandoning public clouds

More than seven in 10 (71%) financial companies are moving some applications running on a public cloud back on premises due to security and regulatory concerns, according to a new report from Nutanix.

A survey of financial services IT leaders in Asia–Pacific, EMEA and the Americas found that constantly evolving regulatory requirements are affecting where companies can store and manage their data.

As a result, just over 59% of financial companies are still operating data centres, making it the highest percentage among any industry, the report states.

These pressures are also compelling more financial services companies to adopt hybrid cloud solutions. The research found that nearly 18% of financial services companies have deployed hybrid cloud today, while 51% plan to invest in hybrid cloud within 3–5 years.

Another factor driving this change is the growing security threat. Six in 10 respondents said security is the biggest influence on future cloud strategies.

Nutanix VP for South Asia Pacific Neville Vincent said these regulatory and security pressures are being acutely felt in Australia.

“As Australia’s financial industry adapts to the aftermath of the Royal Commission, pressure from fintechs and bank disruptors, and increasing regulation requirements, the time to innovate is now,” he said.

“We’re seeing greater appetite among our A/NZ financial services customers to leverage hybrid cloud to end up on the right side of that and stay competitive in a changing industry. But it’s also helping those organisations gain, or often regain, control of their IT investment and their data while remaining secure and compliant.”

The survey also found that just 39% of financial services companies are fully satisfied with their public cloud providers.

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