Nutanix Study Projects Hybrid Multicloud Adoption for Financial Services Will Triple, as Organizations Prioritize Data Security & AI

Rhea-AI Summary

Nutanix (NASDAQ: NTNX) has released its sixth annual Financial Services Enterprise Cloud Index (ECI) survey and research report, revealing significant upcoming trends in the financial services and insurance industry. The study projects a threefold increase in hybrid multicloud adoption over the next three years, driven by the need for enhanced data security, ransomware protection, and the integration of AI technologies.

Key findings indicate that 99% of respondents experienced ransomware attacks in the past three years, with 89% acknowledging room for improvement in their cybersecurity measures. Financial services decision-makers also prioritize AI investments and cost management. Nearly 78% plan to increase spending on cloud computing, AI, and ransomware protection.

The report emphasizes the importance of flexibility, security, and data capabilities in cloud service selection, with sustainability also ranked highly. In the past year, 97% of financial services organizations moved applications to different IT infrastructures to improve performance, security, and compliance.

Positive

• Projected 3x increase in hybrid multicloud adoption in the next three years.
• 99% of financial services respondents experienced ransomware attacks, highlighting the need for better security.
• 78% of respondents plan to increase spending on cloud computing, AI, and ransomware protection.
• 97% of financial services organizations moved applications to different IT infrastructures for better performance, security, and compliance.

Negative

• 89% of respondents believe there is room for improvement in their cybersecurity measures.
• 50% of organizations required several days or weeks to restore operations after a cybersecurity incident, with 12% experiencing longer-term impacts.

Insights

Financial Analyst

The projected tripling of hybrid multicloud adoption within the next three years in the financial services sector is a significant finding. This shift is primarily driven by the need for enhanced data security and ransomware protection, alongside the growing implementation of AI strategies. From a financial perspective, this indicates a substantial increase in IT expenditures among financial institutions. Notably, 78% of survey respondents plan to increase spending on cloud computing, with 77% boosting investments in AI and ransomware protection. These projected increases in budget allocation align with the sector's heightened focus on cybersecurity and AI capabilities.

This trend could translate to increased revenues for companies like Nutanix that specialize in hybrid multicloud solutions. For investors, this highlights potential growth opportunities within the cloud services market. However, it's important to monitor how effectively these investments translate into improved operational efficiencies and cost savings over time. Additionally, the emphasis on sustainability and flexibility in IT infrastructure decisions indicates that financial services companies are looking for long-term, adaptable solutions that can evolve with regulatory changes and technological advancements. The balancing act between immediate cybersecurity needs and longer-term strategic investments will be key for financial institutions moving forward.

Tech Expert

The increased emphasis on hybrid multicloud architectures is a notable trend in the financial services sector, driven by the need for enhanced cybersecurity measures and the integration of AI solutions. Hybrid multicloud offers a versatile IT infrastructure that can address diverse operational needs, from improving application performance to optimizing costs. The flexibility to manage workloads across various on-premises and cloud infrastructures is particularly appealing in a regulatory-heavy environment like financial services, where compliance and security are paramount.

The finding that 99% of respondents experienced a ransomware attack in the past three years underscores the critical need for robust data protection measures. Hybrid multicloud environments can provide the necessary resilience by enabling better data redundancy and disaster recovery options. Furthermore, the planned increases in AI investment highlight the sector's commitment to leveraging advanced technologies for improved decision-making and customer experience. For retail investors, understanding these technological shifts can offer insights into which tech companies might benefit from this transition. Companies specializing in AI and cybersecurity solutions could see increased demand as financial institutions prioritize these areas.

Market Research Analyst

The latest survey findings from Nutanix suggest a significant transformation in the financial services sector's IT landscape, with a notable shift towards hybrid multicloud adoption. The emphasis on cybersecurity, AI integration and cost management reflects the evolving priorities of financial institutions as they navigate an increasingly complex threat landscape. The fact that half of the respondents reported that their organizations required a few days or weeks to fully restore operations after a cybersecurity incident indicates a pressing need for more resilient IT infrastructures.

From a market perspective, this trend represents a substantial opportunity for cloud service providers and cybersecurity firms. The projected increase in IT budgets for AI, ransomware prevention and IT modernization suggests that companies operating in these areas could experience significant growth. Additionally, the focus on sustainability and flexibility in cloud service selection indicates a broader trend towards more holistic and adaptable IT solutions. For retail investors, this information highlights potential areas of growth within the tech and cloud services markets. It's important to consider how these evolving priorities might impact the competitive landscape and drive innovation in the sector.

Projected growth driven by large number of ransomware attacks and acceleration of the use of AI across the financial services sector

SAN JOSE, Calif.--(BUSINESS WIRE)-- Nutanix (NASDAQ: NTNX), a leader in hybrid multicloud computing, announced the findings of its sixth annual global Financial Services Enterprise Cloud Index (ECI) survey and research report, which measures enterprise progress with cloud adoption in the financial services and insurance industry. While current adoption of hybrid multicloud deployments remains consistent year-over-year in the financial services sector, respondents expect a significant 3x increase in adoption in the next three years, making it the leading IT model in the sector.

The Financial Services ECI report revealed that data security and ransomware protection, implementing AI strategies, and minimizing cost are driving IT decision makers infrastructure priorities. 99% of ECI financial services respondents shared that they had experienced a ransomware attack at some point in the past three years. 89% agreed that their organizations had room for improvement when it came to their ability to protect against such attacks. AI was noted as a key driver of IT infrastructure priorities as well, as IT leaders are increasingly tasked to leverage AI solutions to improve decision-making and enhance customer experiences.

This evolution reflects the strategic deployment by financial services industries of diverse cloud environments tailored for specific operational, cost, compliance, and control requirements. Hybrid multicloud architecture’s appeal lies in its ability to offer diverse cost, billing, and deployment options, empowering digital enterprises with the flexibility to enhance application performance, bolster security, accelerate time to market, and optimize IT expenditures.

“It is startling to see that nearly all the financial services respondents in this year’s ECI Survey have experienced a ransomware attack,” said Lee Caswell, SVP Product & Solutions Marketing at Nutanix. “It’s a sign of the times that hybrid multicloud adoption is set to triple as financial services users gear up for heightened cybersecurity risks as new regulatory requirements, such as the EU’s 2025 Digital Operational Resilience Act (DORA), go into effect - making data protection and disaster recovery a hybrid multicloud imperative.”

Financial services respondents were asked about their current cloud challenges, how they’re running business applications today, and where they plan to run them in the future. Key findings from this year’s report include:

• Financial services decision-makers share that cybersecurity remains paramount, yet emphasis on AI Investment and managing overall costs sit closely behind. Half of the respondents (50%) reported that their organizations required a few days or a few weeks to fully restore operations following a cybersecurity incident. Another 12% said that while operations were mostly restored within a few days or weeks, the impact of the attack on the enterprise lasted beyond the restoration of daily operations.
• How FinServ CIOs are thinking about infrastructure priorities. As hybrid multicloud environments grow, so are infrastructure and workloads. Cloud (78%), data and AI (77%), and ransomware protection (77%) are seeing significant growth. Despite frequently citing sustainability as critical to purchasing decisions, few institutions plan to significantly increase investments in this area next year. The largest projected increases in IT budgets are for AI (39%), followed by ransomware prevention (34%) and IT modernization (30%). Overall, 78% of respondents intend to boost spending on cloud computing, with 77% planning increases for AI and ransomware protection.
• Sustainability and flexibility top the list of key factors for decision making. For financial service companies selecting cloud services (private, hybrid, or public), flexibility, security, and data capabilities have consistently been key criteria this year and last. When ECI respondents were asked to identify the single most important factor influencing their IT infrastructure purchasing decisions, sustainability was the top selection (15%), closely followed by the flexibility to manage workloads across various on-premises and cloud infrastructures (14%), and cost considerations (14%). This varied compared to other sectors where sustainability and cost were generally ranked as less important.
• The desire to improve data access performance, security, and regulatory compliance are why financial enterprises relocate applications to a different infrastructure. Nearly all respondents (97%) in the financial services sector and 95% globally said they had moved one or more applications to a different IT infrastructure in the past 12 months, creating a need for simple and flexible inter-cloud workload and application portability. Application movement in financial services was motivated most often by a desire to enhance performance/data access speeds (42%), followed by improving security and regulatory compliance (41%).
• The top-ranked challenges in financial services IT departments are cyber and compliance related. Among financial services respondents, ransomware prevention/data security and adherence to data storage/usage mandates, like DORA, were both cited as the top data management challenges today, each by 19% of respondents.

For the sixth consecutive year, Vanson Bourne conducted research on behalf of Nutanix, surveying 1,500 IT and DevOps/Platform Engineering decision-makers around the world in December 2023. The respondent base spanned multiple industries, business sizes, and geographies, including North and South America; Europe, the Middle East and Africa (EMEA); and Asia-Pacific-Japan (APJ) region.

To learn more about the report and findings, please download the full global Financial Services Nutanix Enterprise Cloud Index, here.

About Nutanix

Nutanix is a global leader in cloud software, offering organizations a single platform for running apps and data across clouds. With Nutanix, companies can reduce complexity and simplify operations, freeing them to focus on their business outcomes. Building on its legacy as the pioneer of hyperconverged infrastructure, Nutanix is trusted by companies worldwide to power hybrid multicloud environments consistently, simply, and cost-effectively. Learn more at www.nutanix.com or follow us on social media @nutanix.

© 2024 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or unregistered trademarks of Nutanix, Inc. (“Nutanix”) in the United States and other countries. Other brand names or marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). This press release is for informational purposes only and nothing herein constitutes a warranty or other binding commitment by Nutanix. This release may contain express and implied forward-looking statements, which are not historical facts and are instead based on Nutanix’s current expectations, estimates and beliefs. The accuracy of such statements involves risks and uncertainties and depends upon future events, including those that may be beyond Nutanix’s control, and actual results may differ materially and adversely from those anticipated or implied by such statements. Any forward-looking statements included herein speak only as of the date hereof and, except as required by law, Nutanix assumes no obligation to update or otherwise revise any of such forward-looking statements to reflect subsequent events or circumstances.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240625904443/en/

Gabrielle Moynan

pr@nutanix.com

Source: Nutanix

FAQ

What is the projected growth for hybrid multicloud adoption in financial services according to Nutanix?

Nutanix projects a threefold increase in hybrid multicloud adoption in the financial services sector over the next three years.

How prevalent are ransomware attacks in the financial services sector?

According to Nutanix's survey, 99% of financial services respondents experienced ransomware attacks in the past three years.

What are the main priorities for IT decision-makers in financial services?

IT decision-makers in financial services prioritize data security, ransomware protection, AI integration, and cost management.

How much do financial services companies plan to increase spending on cloud computing and AI?

78% of financial services companies plan to increase spending on cloud computing, and 77% on AI and ransomware protection.

Why are financial services organizations moving applications to different IT infrastructures?

Financial services organizations are moving applications to different IT infrastructures to improve performance, security, and regulatory compliance.