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The financial sector has remained relatively unchanged since the global economic crisis of 2007-2008. That is not to say it hasn’t weathered a storm or two, but now the industry is on the cusp of transformation, and the industry cloud can help guide banks into a safe harbour.
In today’s ever-evolving digital business landscape, the cloud is now “indispensable”, says Gartner’s Vice President Analyst Sid Nag, adding that generated artificial intelligence (GenAI) will also transform the industry cloud platform (ICP) market. The industry cloud is a vertical cloud platform that merges platform, software and infrastructure as a service capability, offering tailored solutions for a variety of vertical industries.
This sentiment is reflected in recent industry reports finding that the global cloud computing market size is projected to reach USD$2.39 trillion by 2030. A significant portion of this represents the industry cloud segment, which is set to become a $640 billion market this year, according to a recent Deloitte analysis.
When it comes to the industry cloud, there are some subtle differences.
The industry cloud effect
The “cloud” in industry cloud refers to cloud services that are specifically tailored to meet the unique needs and compliance standards of particular sectors, such as the financial and government segments. These sectors often require specialised functionalities and enhanced security measures. Instead of a one-size-fits-all mentality, industry cloud solutions are vertically integrated and agile, allowing organisations with highly sensitive information in their possession to be secured and aligned with business goals and government regulations.
According to the International Data Corporation (IDC), the industry cloud market has “exploded”, quickly emerging as a highly effective solution. This growth is primarily attributed to the fact that it gives organisations a more direct path to cloud, among other clear advantages.
The modern cloud computing environment is not isolated, static, or one-dimensional. It is complex and nuanced, acting as a sophisticated ecosystem and so business leaders must carefully consider the best cloud strategy for their modern workplace. Particularly in the banking sector, the industry cloud is gaining traction as a dynamic and effective solution. A prime example is in less than five months, HSBC codeveloped a new risk advisory tool enabling the bank to run complex simulations 16 times faster than before.
5 key benefits of industry cloud
The industry cloud continues to rise in prominence because of its innovative advantages that don’t exist with traditional cloud services. Here are five fundamental advantages that the cloud offers industries:
1. Stringent security:
A top concern for segments such as banks and governmental agencies, security is a key component of any business strategy. But the industry cloud allows businesses to adjust their strategies in response to evolving security challenges and requirements, ensuring vigorous protection for sensitive data and operations.
2. Data access, quality and insights:
Industry cloud uncovers new insights with enhanced data, supporting decision making. This technological advancement allows companies to leverage their data assets more successfully, leading to strategic, positive outcomes.
3. Unrivalled innovation:
Industry cloud platforms catalyse innovation within banks and other industries by offering advanced tools like artificial intelligence (AI) and machine learning, pre-configured to tackle common banking challenges and opportunities.
4. Cost savings:
Adopting the industry cloud often results in tapping into significant cost savings for banks by reducing the need for bespoke software solutions and minimising ongoing operational costs.
5. Scalability and flexibility:
Industry cloud offers unmatched scalability and flexibility, supporting banks in efficiently scaling their operations and adapting to market changes without heavy investments in physical infrastructure.
The industry cloud advantage
Industry cloud adopters will find new capabilities unlocked, offering improved built-in compliance with industry-specific regulations for privacy, security, and reporting. Setting itself apart from traditional offerings and competitors, the industry cloud ecosystem and partners can get very granular, often providing business-exact workflows, data models, and other services that offer businesses the ability to leverage cutting-edge accelerators tailored for their industry.
Further, hyperscale providers play a pivotal role by offering scalable and robust cloud infrastructures that cater to the vast data handling and complex computing requirements essential in the banking industry. The escalating adoption of large-scale cloud implementations by hyperscale entities is driving significant advancements and revealing demonstrated success in the banking industry, marked by notable enhancements in operational efficiency, cybersecurity, and adherence to regulatory standards.
Key considerations for industry cloud adopters
Organisations navigating their industry cloud journey should consider that smaller service providers distinguish themselves by focusing on niche banking needs, delivering more personalised cloud solutions that often include unique features not available from larger providers. The standardised cloud approach may fall short for financial institutions seeking diverse solutions.
The future of industry cloud in the financial sector looks promising, with trends pointing towards an increased adoption of hybrid cloud solutions and further in areas like real-time data analytics and enhanced cybersecurity measures. Businesses can seize the benefits of industry cloud solutions by thoroughly evaluating their present needs, forecasting future requirements, and aligning these with core values. This strategic groundwork not only positions industry leaders to harness gains effectively but also equips them to proactively navigate forthcoming transformations and uncertainties with confidence.
To learn more about Experteq’s trusted advisor approach specific to the financial services sector and in relation to industry cloud, contact us today.
