Study Shows Financial Services Organizations are in Early Phases of Multicloud Adoption

Rhea-AI Summary

Nutanix (NASDAQ: NTNX) released its 2022 Enterprise Cloud Index report, revealing that financial services organizations are lagging in multicloud adoption, with only 26% currently utilizing this model. The report anticipates growth to 56% over the next three years. Key challenges include security concerns (50%) and data integration (46%). Despite these hurdles, 82% of respondents view hybrid multicloud as the optimal IT model. The findings highlight a significant shift in priorities, including enhanced security and multicloud management, post-pandemic.

Positive

• Hybrid multicloud is favored by 82% of financial services respondents as the ideal IT model.
• Adoption of multicloud in financial services is set to rise from 26% to 56% in three years.
• 98% of respondents have migrated applications to new environments, indicating a proactive approach to IT infrastructure.

Negative

• Only 26% of financial services organizations currently use multicloud, trailing the global average by 10%.
• 31% are still reliant on non-cloud-enabled three-tier datacenters.
• 59% of financial services respondents do not utilize public cloud services, higher than the global average of 47%.

Research Reveals Hybrid Multicloud is the Ideal IT model, but the Financial Services Industry is Slower to Adopt

SAN JOSE, Calif.--(BUSINESS WIRE)-- Nutanix (NASDAQ: NTNX), a leader in hybrid multicloud computing, announced the financial services findings of its global 2022 Enterprise Cloud Index (ECI) survey and research report, which measures enterprise progress with cloud adoption in the industry. The research showed that fewer financial services organizations have adopted multicloud than any other industry surveyed, trailing the global average by 10%. However, adoption is expected to nearly double from 26% to 56% in the next three years, in line with the global trend of evolving to a multicloud IT infrastructure that spans a mix of private and public clouds.

Among financial services ECI respondents, 31% are still operating non-cloud-enabled three-tier datacenters as their only IT infrastructure. They also reported having the lowest deployment of all industries surveyed in public cloud usage, with 59% using no public cloud services compared to 47% globally, likely due to substantial existing legacy investments in applications and the highly regulated nature of the industry. The complexity of managing across cloud borders remains a major challenge for financial services organizations, with 84% of respondents agreeing that success requires simpler management across multicloud infrastructures, and 50% citing security concerns as a challenge to the multicloud model. To address top challenges related to security, interoperability, and data integration, 82% agree that a hybrid multicloud model, an IT operating model with multiple clouds both private and public with interoperability between, is ideal.

“While the financial services industry appears to be in the early phases of deployment, the evolution to an interoperable multicloud IT infrastructure that spans a mix of private and public clouds is underway,” said Anand Akela, VP of Product and Solutions Marketing at Nutanix. “As information security and operational resiliency remain front and center for financial services organizations, they must look to hybrid multicloud solutions with integrated manageability and security, and the ability to quickly move apps among cloud infrastructures cost-effectively.”

Financial services survey respondents were asked about their current cloud challenges, how they’re running business and mission-critical applications now, and where they plan to run them in the future. Respondents were also asked about the impact of the pandemic on recent, current, and future IT infrastructure decisions and how IT strategy and priorities may change because of it. Key findings from this year’s report include:

• Financial services organizations face multicloud challenges, including security (50%), integrating data across clouds (46%), and performance challenges with network overlays (43%). Given that nearly 78% cited the lack of some IT skills to meet current business demands, simplifying operations is likely to be a key focus in the year ahead. However, IT leaders are realizing that there is no one-size-fits-all approach to the cloud, making hybrid multicloud ideal according to the majority of respondents (82%). This model will help address some of the key challenges of multicloud deployments by providing a unified cloud environment on which security and data governance policies can be applied uniformly.
• Application mobility is top of mind. Nearly all financial services respondents (98%) have moved one or more applications to a new IT environment over the last 12 months, likely from traditional datacenters to private clouds given the industry’s relatively low multicloud and public cloud penetration. Faster app development (43%) was most often cited as the reason for the move, followed closely by security (42%), and integrating with cloud-native services (40%). Additionally, with a large majority (83%) agreeing that moving applications to a new environment can be time-consuming and costly, it’s expected that the adoption of containers will rise in step with multicloud deployments to enable apps to run and move nearly anywhere quickly and easily. Among financial services respondents, 86% said that containers will be important to their organizations within the next year.
• Top financial services IT priorities for the next 12 to 18 months include improving security posture (54%), improving multicloud management (49%), and developing and/or implementing cloud-native technologies (47%). When asked what their organizations had done differently because of the pandemic, 70% said they had increased spending to strengthen their security posture, 64% spent more on increasing AI-based self-service automation, and 64% invested in infrastructure upgrades.

For the fourth consecutive year, Vanson Bourne conducted research on behalf of Nutanix, surveying 1,700 IT decision-makers around the world in August and September 2021. This report is supplemental to the global Fourth Annual Enterprise Cloud Index master report and focuses on cloud deployment and planning trends in the financial services industry, based on the responses of 250 IT professionals in banks and insurance companies across the globe. It compares the cloud plans, priorities, and experiences of these organizations to other industries and the global response base overall.

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

About Nutanix

Nutanix is a global leader in cloud software and a pioneer in hyperconverged infrastructure solutions, making clouds invisible, freeing customers to focus on their business outcomes. Organizations around the world use Nutanix software to leverage a single platform to manage any app at any location for their hybrid multicloud environments. Learn more at www.nutanix.com or follow us on social media @nutanix.

© 2022 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or trademarks of Nutanix, Inc. in the United States and other countries. Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). This release may contain links to external websites that are not part of Nutanix.com. Nutanix does not control these sites and disclaims all responsibility for the content or accuracy of any external site. Our decision to link to an external site should not be considered an endorsement of any content on such a site. Certain information contained in this press release may relate to or be based on studies, publications, surveys and other data obtained from third-party sources and our own internal estimates and research. While we believe these third-party studies, publications, surveys and other data are reliable as of the date of this press release, they have not independently verified, and we make no representation as to the adequacy, fairness, accuracy, or completeness of any information obtained from third-party sources.

This release may contain express and implied forward-looking statements, which are not historical facts and are instead based on our 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 our 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, we assume 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/20220517005132/en/

Abby Evans

pr@nutanix.com

Source: Nutanix

FAQ

What were the findings of Nutanix's 2022 Enterprise Cloud Index report related to multicloud adoption in financial services?

Nutanix's report indicates that only 26% of financial services organizations have adopted multicloud, but this is expected to double to 56% within three years.

What are the main challenges faced by financial services organizations in adopting multicloud?

The report highlights security concerns (50%), data integration issues (46%), and performance challenges as significant barriers to multicloud adoption.

What is the ideal IT model preferred by financial services according to Nutanix's report?

According to the report, 82% of financial services respondents believe that a hybrid multicloud model is the ideal IT operating model.

How has the pandemic influenced IT spending in financial services organizations?

Post-pandemic, 70% of respondents reported increased spending to enhance their security posture and 64% invested in infrastructure upgrades.

How many applications have financial services organizations migrated over the last year?

According to the report, 98% of financial services respondents have moved one or more applications to new IT environments within the last 12 months.