Levels of cloud adoption and ambition

Levels of cloud adoption

We identified three distinct groups among the banks based on their existing level of cloud adoption. There are just as many banks pulling ahead as falling behind, but most fall somewhere in between.

27%

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Cloud Conservatives

45%

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Cloud Followers

28%

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Cloud Leaders

Cloud Conservatives have at most 10 percent of their applications in the cloud. Cloud Followers have between 11 and 30 percent of their applications in the cloud. Cloud Leaders have more than 30 percent of their applications in the cloud.

Though levels of cloud adoption vary widely, most firms want to at least double—with many wanting to quadruple—their use of cloud across their technology estates in the next three years.

Cloud ambition – triple in three years

Retail and Commercial Banks have big ambitions over the next three years to increase the share of their applications and data that are hosted in the cloud, signaling a major acceleration compared with their pace of adoption over recent years.

Over two thirds of banks want at least 30 percent of their applications and data to be in the cloud in three years’ time, close to triple the number of banks who have achieved that today.

Q: What percentage of your bank’s applications are currently in the cloud? And what percentage would you like to be in the cloud in three years? (Figure 1)

Q: What percentage of your bank’s data is currently in the cloud? And what percentage would you like to be in the cloud in three years? (Figure 2)

Cloud becomes customer facing

Seeing cloud’s value in business transformation means shifting the focus on cloud from what goes on behind the scenes to what customers can see.

Many banks are preparing to shift their cloud investment from back-office applications and core banking systems to customer-facing applications.

Indeed, almost half (44 percent) of banks would like their cloud-based applications to be mainly or almost exclusively customer-facing in three years. That’s ambitious given that today just 11 percent of banks’ cloud applications are deployed for this purpose.

Q: Are your bank’s cloud-based applications mainly customer-facing applications or back-office applications / core banking systems? What split would you like to achieve in three years’ time? (Figure 3)

Q: Are your bank’s cloud-based applications mainly customer-facing applications or back-office applications / core banking systems? Today and in three years. (Figure 3)