Cloud computing application issues cost financial firms €500,000 annually, report reveals

25 November 2010

Issues surrounding the adoption of cloud computing applications lose financial organisations more than €500,000 each year, a new study has revealed.

Research by Compuware Corporation highlighted problems such as slow response-times for online business applications and internet banking websites not being optimised for mobile devices as key concerns.

More than half of the 300 IT directors at European financial firms questioned as part of the survey said they would be slowing down their take-up of cloud-based solutions until issues surrounding performance are rectified.

Richard Stone, cloud computing solutions manager at Compuware, said: “So far financial sector organisations have largely invested in cloud applications without giving too much consideration to the hidden business risks that result from poor performance.

“Although many of these organisations understand the flexibility and cost benefits of the cloud model, this research indicates that further adoption will be severely hampered unless cloud performance management is tackled.”

Further findings from the study showed that 80 per cent of firms said that their ability to guarantee service levels is restricted as cloud solutions are provided over an open network.

According to Compuware, firms have previously structured the management of these strategies around internal infrastructures.

By Jim Ottewill

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