In the FinTech Sector COVID-19 is accelerating the speed of cloud adoption and cloud spend. Netan Rosenthal takes a look at this key trend.
The fallout from the COVID-19 pandemic continues to be felt around the world, from its devastating impact on lives and livelihoods to hugely damaged economies and job markets. Amidst these global shockwaves, radically different ways of working have meant some existing trends have accelerated. Within the financial technology sector, COVID-19 is rapidly accelerating the speed of cloud adoption and cloud-spend among businesses and large enterprises. In this article, I outline the predicted scale of adoption and take a look at the benefits and drivers of cloud adoption.
According to a recent study by MarketsandMarkets, “the global impact of COVID-19 on cloud market size is expected to grow from USD 233 billion in 2019 to USD 295 billion by 2021”, an increase of 21%. A separate study conducted by Flexera shows that enterprises are continuing to embrace multi-cloud strategies and that most enterprises are using at least two public clouds on average – also an increase from previous years. The agility and scalability of these cloud-based applications are ultimately accelerating the adoption curve and the majority of IT Decision Makers (ITDMs) seem to group the advantages of these applications into three main categories: rapid communication, global reach and access to real-time data.
For businesses to function properly, instant communication is key and the geographical constraints of remote work have increased the need for virtual collaboration tools that allow for instant communication – like Slack, Microsoft Teams, Zoom, etc. Although the functionality and structure of these applications are different, the common denominator is that they’re all cloud-based. The accumulation of resources in the cloud allows companies like Slack and Zoom to simulate disaster recovery, which ensures our information is continuously available and accessible. In other words, the cloud provides consistency by arranging endpoints together, making networks uniform, and doing these tasks seamlessly to provide instant solutions as everyday challenges emerge.
Real-Time Data & Global Reach
For companies that are involved in analytics or trading, global reach and access to real-time data is an absolute necessity. In today’s world, most analytics and trading applications would not be able to operate in real time without the cloud – especially across borders. In trading, for example, the use of real-time data allows businesses to see the potential gains or losses as they occur, as well as better predict price movements, which can be vital to the firm’s success or demise. For data insights to be most effective, the data being accessed and analyzed needs to be stored in the same place, which would be impossible without the cloud, especially on a global scale. To quote a recent Forbes article by Emil Sayegh:
“driving back and forth to the supercomputer isn’t a necessity anymore when the cloud itself is a massive supercomputer.” Emil Sayegh
Market Impact – A Time For Optimism
Although times are uncertain, I believe there is reason to be optimistic about the future of cloud computing, especially within the FinTech market. The fact that companies are embracing multi-cloud strategies is ultimately a great sign for job seekers in tech. Companies will require a wider variety of skills to operate efficiently and the companies that feel confident enough to invest in their cloud strategies should ultimately benefit from access to high-caliber candidates who have been affected by layoffs through no fault of their own.
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