Survey Reveals Financial Services Organizations Making Private Clouds An IT Spending Priority

London - 18 November 2009

Platform Computing, the leader in cluster, grid and cloud management software, today announced the findings of its second annual financial services cloud computing survey. The research reveals that 83 percent of respondents are making private clouds their first priority in moving to a cloud model. Furthermore, the majority (83 percent) of respondents plan to increase their investment in grid and high performance computing (HPC) in the next 12 months as part of their plans to incorporate cloud within the IT infrastructures.

Platform’s survey of senior IT executives at 35 leading financial services firms highlights the evolution of IT architectures taking place within the industry. While the financial crisis appears to have pushed back the wider adoption of cloud computing, nearly all respondents said that HPC was a major stepping stone in moving toward cloud computing. Moreover, virtualization remains a major focus for organizations with 43 percent making it their main infrastructure priority for 2010. The main reasons cited for the focus on these two technologies were to reduce costs (31 percent) and increase processing power (37 percent). The focus on HPC and virtualization means that the move to private cloud will not be a big leap for financial services organizations.

In addition, there has been a major shift in awareness and understanding of cloud computing among senior IT executives in the last year. In the 2008 survey, respondents said that cloud computing’s relative infancy (29 percent) and lack of definition (29 percent) were the biggest hurdles. Over the last 12 months the barriers have changed, according to the latest survey findings, with 46 percent of respondents citing security as the number one barrier to cloud computing and only six percent claiming reliability and availability of services as a major factor.

David Warm, Chief Technology Officer, Financial Services Business Unit, Platform Computing, said: “Our second annual survey has seen a transformation take place in the industry, driven primarily by the global economic downturn. While we have continued to see tremendous interest in HPC and virtualization technologies to support cost reduction and processing power requirements, we have also seen the awareness and understanding of cloud rise significantly over the last 12 months. While full adoption of cloud appears some way off, banks are certainly preparing themselves for it with the adoption of private clouds. The deployment of cloud management software is the next logical step for financial services firms, and we believe that we are ideally placed at the forefront of that technology adoption curve.”

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