Six trends shaping the future of cloud in APAC eJ financial services

Hybrid cloud environments and the use of multi-clouds means a more agnostic experience for delivering container-based workloads.

The COVID-19 pandemic has significantly accelerated the demand for digital transformation at the same time, technology investments are under more scrutiny to deliver more for less. This has urged organizations to pivot to cloud services to secure scalable, resilient, available, and agile IT operations to be most effective.

IDC Financial Insights Asia Pacific’s (except Japan) latest report Cloud Outlook 2021: Cloud Is Increasingly Becoming a Primary Route for Financial Services Collaboration, Innovation, and Transformation presents the way APACeJ financial services institutions must manage their future strategies to cloud. The report underscores six market trends that continue to define cloud demand and the future of cloud in financial services in 2021 and beyond.

“Cloud will continue to be a significant foundational pillar for financial services institutions for the foreseeable future. As enterprises invest in cloud, IDC has observed that the ability to shift cloud spending from capex to opex has proven to be a successful enabler for future cloud investments, scalability, and availability,” said Sneha Kapoor research manager at IDC Financial Insights Asia/Pacific.

According to IDC’s Worldwide Public Cloud Services Spending Guide, January 2021, Asia/Pacific excluding Japan (APEJ) public cloud spend of financial services institutions (FSIs) will grow over three times from US$4.9 billion in 2019 to US$18.1 billion in 2024 at a compound annual growth rate (CAGR) of 29.9 per cent. As cloud investment models continue to evolve, the way FSIs manage their cloud services must evolve as well. The next 24 months will usher in a continued shift from monolithic models to more simplified cloud services.

IDC Financial Insights expects that by 2023, 85 per cent of tier-1 and tier-2 APEJ banks will curate an infrastructure strategy by coalescing on-premises/dedicated private clouds and multiple public clouds, along with legacy platforms, to assuage their many infrastructure requirements.

“Hybrid cloud environments and the use of multi-clouds means a more agnostic experience for delivering container-based workloads. Expanding microservices will offer increased tangible benefits and leverage developer independence, scalability, and rapid deployment capabilities,” adds Clay Miller, Senior Executive Advisor at IDC Financial Insights Asia/Pacific.

Cloud Underpinning the Platform of Recovery of Asia/Pacific financial services institutions for 2021 was one of the topics discussed at the 2021 IDC Asian Financial Services Congress. IDC Financial Insights unveiled its latest research on financial services and insurance industry and provide engaging discussions around Crisis and Recovery Analytics, The Regionalisation of China’s FinTech, and Next-Generation Digital Core to name a few. You can catch the full show of the 2021 IDC Asian Financial Service Congress on demand, at IDC Arena – our very own groundbreaking, intuitive, and data-driven content hub built for maximum engagement.




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