While most financial organisations worldwide (89%) are moving to the cloud, a significant amount (68%) already say that cloud migration has greatly or moderately changed their business for the better, according to the Unisys Cloud Success Barometer™. Surveying 155 senior IT and business leaders within financial services on the impact and importance of cloud in 13 countries around the world, including the UK, Germany, Belgium, and the Netherlands, the research provided quantifiable proof that moving to the cloud is the right decision for financial institutions – but a strategic approach tied to business mandates and third-party support were key determinants of success.
Driving the Shift to the Cloud
The research discovered a feeling of anxiety and uncertainty across the financial services industry in relation to the pace of technological innovation as driving factors in moving to the cloud. In fact, 59% of financial institutions were concerned about becoming a technological laggard, while 64% expressed concerns about their competition innovating first. Against this backdrop, the research found that the cloud is being recognised as a strategy that can tackle this issue, with 70% of financial organisations saying they saw an increase in competitive advantage from migrating to the cloud, while one third (33%) said that driving innovation was a key driver of cloud transition. Meanwhile, IT and data security was found to be another big driver for cloud adoption, with 65% citing it as an expected benefit.
Seeing the Value of Cloud
Three in four (75%) senior business leaders at financial institutions with more than half of their IT on cloud were more likely to see a greater change in organisational effectiveness compared to those organisations who had not significantly moved to the cloud. In particular, the majority (77%) said migration to the cloud had met or exceeded their expectations for security, improving the supply chain (75%) and driving innovation (74%).
The study also showed that 71% of financial institutions globally who decided to use a third party to help with moving to and optimising the cloud felt that organisational effectiveness had changed greatly or moderately for the better. Meanwhile, almost half (43%) of financial service businesses say they needed third-party support with migration to the cloud when they were optimising their cloud transformation process. With cybersecurity being such a priority for cloud transition, over half of financial institutions (57%) also admitted that they needed third parties to support them in this critical element of their cloud transformation project.
The Keys to Success
Overall, the research found that financial institutions who integrate cloud into their core business strategy see greater results. In fact, 79% of organisations who integrate cloud as core to their business strategy witness greater benefits which improve business results for the better, as opposed to just 42% of institutions which deem cloud as minor to their business strategy. Regarding additional benefits to financial services that migrate to the cloud, the study found that 70% of organisations witnessed an increase in competitive advantage, with 68% reaping rewards with increased revenue.
However, relatively few financial organisations (27%) have embraced a multi-cloud approach, despite the advantages this offers, especially as multi-cloud users see the cloud as essential to staying competitive – 30% have been impacted by a competitor who leverages cloud innovations. By choosing multiple cloud providers, businesses can take advantage of the best parts of each provider’s services and customise these to suit the needs – and expectations – of the organisation. In addition, one-third (33%) admitted to needing third-party support when it came to managing hybrid cloud environments.
Simon Healy, EMEA Financial Services Industry Director at Unisys, commented: “Our findings show that the majority of organisations that are meeting their expectations with the cloud are the ones that have combined a strategic approach with the expertise of a third party. To really reap the full benefits of the cloud, financial institutions need to commit with a considered approach, ensuring best practice supported by a robust methodology, and specialist support that they might not have in house.”
More than 380 financial institutions worldwide rely on Unisys solutions. For more information on the Unisys Cloud Success Barometer, click here, and for more information on Unisys financial services offerings, click here.