Cloud Adoption Research Paper

Any bank considering a cloud migration must have an inventory of its applications and future road maps of these going forward. In both of these areas banks seem well prepared. This report considers what is happening in the capital markets area, regarding banks’ current cloud strategy and their planned usage of public cloud in the future.

Banks generally make only limited use of private cloud but enough to understand general cloud issues. Public cloud usage at the moment is generally very low or non-existent. All banks have strong growth plans over the next 5 years with the tier 2 banks being more aggressive than the tier 1s. This is due to a number of factors – tier 2 banks do not have the legacy and technology complexity of tier 1s; they are more nimble and aggressive, and some of their key (third- party) applications are already being ported to the cloud by vendors. Some tier 1 (and tier 2) banks are planning to move directly from internal legacy systems directly to cloud native systems – CloudMargin in the collateral space being a good example.

In the general cloud marketplace Amazon is dominant with around 33% of market share - more than the next three biggest combined. However, in the capital markets space, Microsoft leads, closely followed by Amazon then Google. IBM is the only other major player mentioned.

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