Ovum Report: Capital Markets Increasing Cloud Investment
The capital markets vertical is increasing its investment in cloud services, according to new research from analyst firm Ovum The report, "Cloud in the Capital Markets: A Progress Report," noted that capital markets are set for heavy investment in cloud.
The capital markets vertical is increasing its investment in cloud services, according to new research from analyst firm Ovum. The report, “Cloud in the Capital Markets: A Progress Report,” noted that capital markets are set for heavy investment in cloud.
The report was penned by Rik Turner, Ovum’s senior analyst focusing on financial services technology. In his report, he noted that capital markets have finally turned the curve in cloud adoption because of improvements to cloud security and a wider range of available applications. Although capital markets aren’t currently fully integrated with the cloud, changes in cloud technology are bringing about a change that will continue over the next few years.
“The buy side tends to be an easier target for cloud than the sell side, given that more of its participants are smaller firms with limited IT budgets,” Turner said in a prepared statement. “That said, the sell side is changing. With budgets and headcount under more constraints since the global financial crisis, there are clearly opportunities on that side of the business too.”
As cloud usage within the capital markets continues to rise and they deploy more of their internal IT infrastructure in the cloud, the next step for many businesses is to switch to a hybrid cloud environment. It’s not quite a done deal, though. According to the report, there are still obstacles that need to be overcome, including lack of standards and deterministic latency.
“Cloud services adoption in the capital markets has increased in the last few years. In the future, there will be an even faster uptake of cloud services. Although the process of migrating services to the cloud is often driven by cost constraints, there is also now a dimension of preparing a platform for the sector’s future evolution,” Turner said.