A report said the consequences of the credit crunch in 2008 has concentrated the minds of the financial sector and helped them to understand the benefits cloud services can bring.
According to the report, UK Financial Services Sector SITS Market Trends and Forecasts, from Tech Market View, the crash prompted “draconian cost cutting measures and rapid withdrawal from marginal business areas”. But returning confidence in investment markets and other factors including more conservative ambitions have lead companies to concentrate on transforming costs.
The authors of the report said it is now clear to both customers and vendors that the last 18 months has seen a change in attitudes towards cloud services.
Their opinion now is that the sector will use cloud services to make the changes to costs. “Earlier concerns about security have moderated somewhat and… many companies have developed working practices and systems to limit the threat.”
And large customers now seem to be convinced of the benefits of private clouds. The report points to Lloyds Banking Group creating a cloud system for Unix and Windows servers.
Nevertheless, use of the cloud in core banking and transaction processing “is a long way off”.
