Global Private and Public Cloud Market in Financial Services Industry Will Flourish Due to the Increasing Need for Predictive Analysis: Technavio
BUSINESS WIRE – LONDON- According to the latest market study released by Technavio, the global private and public cloud market in the financial services industry is expected to grow at a CAGR exceeding 13% during the forecast period.
This research report titled ‘Global Private and Public Cloud Market in the Financial Services Industry 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.
As per Technavio’s latest analysis, IT spending in financial services had reached more than USD 100 billion in 2015. It includes IT infrastructure, hardware, software, cloud, mobility, and big data analytics. The spending on cloud is increasing because financial services are increasingly adopting advanced cloud solutions for financial and accounting, CRM, core banking, and analytics, which help in improving business profitability.
Amrita Choudhury, a lead analyst at Technavio for research on enterprise application, says, “Adopting cloud solutions such as analytics, big data, CRM, and human resource management help financial services firms to manage and analyze large volumes of data and store it for future use. It also helps financial firms develop long-term business plans and strategies. Hence, the adoption of cloud among global financial services such as De Nederlandsche Bank, Bankinter, and HSBC is high.”
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Based on service type, the global private and public cloud market in financial services industry is segmented into the following segments:
SaaS: reduce high upfront costs of software licensing
SaaS or software as a solution are on-demand software solutions delivered over the internet through a subscription model. Organizations are implementing SaaS solutions on premises to reduce high upfront costs of software licensing.
Financial services firms are adopting SaaS-based software solutions for CRM, wealth management, core banking, accounting, and payroll. SaaS-based software solutions have gained high traction as the time taken for its implementation is less compared with on-premises software solutions. Vendors such as Salesforce.com specialize in SaaS-based CRM solutions and generate a significant amount of revenue from the sale of cloud-based CRM and wealth management software. The demand for SaaS solutions powered by analytical tools is high among financial services firms because of the increased need for predictive analysis.
IaaS: increasing adoption by SMEs
“Infrastructure as a service or IaaS are cloud computing services that are implemented to manage databases, storage, networking, disaster recovery, and infrastructure-related solutions through hosting services. The adoption of IaaS is increasing among SMEs to scale up or scale down IT infrastructure requirements through on-demand cloud computing services,” says Amrita.
The lack of an in-house IT team to manage infrastructure-related IT solutions is a challenge faced by few financial firms. Therefore, these financial firms prefer to either outsource their IT department to third-party service providers or subscribe to cloud-based services. Leading vendors in the market such as Microsoft and AWS offer IaaS solutions to financial services firms for data center services, application management, and disaster recovery. The storage space offered is based on the pay-as-you-go pricing model. The IaaS solutions offered to SMEs are similar to the solutions offered to large organizations. However, the solutions offered to SMEs do not include value-added services primarily due to price differentiations.
PaaS: enterprise mobility plays a major growth factor
PaaS provides a platform to create and manage web applications and business processes across an organization’s IT environment. These applications and business processes can be delivered over the internet. PaaS solutions act as a link between applications in the cloud computing architecture and provides a platform to integrate enterprise web applications.
PaaS solutions, such as Microsoft Azure platform service, provide a platform for application development and management services. Some of the advanced software development tools such as DevOps can be integrated with PaaS solutions to build, run, and test applications in a cloud-based environment. Enterprise mobility is one of the major factors for the growth of the PaaS market as enterprise mobile application developers are increasingly adopting PaaS solutions for various applications.
Some of the top vendors highlighted by Technavio’s research analysts in this report are:
- Eze Castle Integration
Browse Related Reports:
- Global Cloud Collaboration Market 2016-2020
- Global Enterprise Cloud Services Market 2016-2020
- Global Public and Private Cloud Storage Market 2015-2019
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
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