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Private cloud gains momentum in the BFSI sector: CIO research

Madhav Mohan July 18, 2017

The cloud has become a mainstay in the BFSI sector, with recent reports by State of the CIO survey 2016 showing that 40 percent prefer to choose private cloud, 35 percent Hybrid and 25 percent public cloud.

If an interesting observation has to be made, CIOs in the BFSI industry have a strong inclination towards deploying private cloud. Responding to the State of the CIO survey 2015, 37.14 percent of the Indian CIOs in the BFSI sector said that they were using or planning to use private cloud. However in the 2016, the figure has swelled to 40 percent, indicating that private cloud is gaining traction.

There are reasons why IT leaders prefer to stick to private cloud. Last year 55.26 percent of the CIOs were of the opinion that private cloud was a great means of leveraging existing assets and increasing efficiency, whereas this year the number sprang up to 65 percent. This shows that more and more CIOs are either becoming aware of or reaping the benefits of transitioning to private cloud.

In addition, last year, 42.12 percent of the CIOs felt that private cloud reduces the total cost of ownership, whereas this year the number sprang up to 65 percent. At the same time, last year 47.37 percent felt that it reduces time to deliver applications to the business, whereas, the survey for 2016 reveals that 50 percent feel the same.

Hold on. There’s more.

All is not hunky dory as CIOs face quite a few challenges while adopting private cloud.

CIOs had to battle through a few hurdles to emerge victorious. A whopping 70 per cent of the CIOs found that integrating existing IT systems with cloud was a major hurdle. Cloud integration continues to be a big challenge as it requires web APIs that may be unfamiliar to the technical team.

Apart from the one mentioned above, updating current infrastructure and making the business case for private cloud and upgradation of current infrastructure are the other challenges.

Now, what about the company’s legal obligation? Interestingly, 80 percent of CIOs in the BFSI said that they were aware of the company’s legal obligation where cloud computing was concerned.

Bottomline: With all the benefits associated with the private cloud and CIOs voting for it, whether private cloud would continues to gain traction six months down the line, is a million dollar question. But for now it seems the way ahead.