Connecting to LinkedIn...



New Survey Findings from SAP and Ovum Reveal High Cloud Adoption in the Financial Services Industry

10/09/2014 by


New survey findings from SAP SE (NYSE: SAP) and analyst firm Ovum reveal a surging demand for cloud technology among retail banks and insurance companies. Software-as-a-Service (SaaS) solutions are now being considered in almost all new IT investment projects. The research was unveiled at the SAP Financial Services Forum London, being held September 9-10 in London.

"The findings reveal a new maturity for cloud computing in the financial services industry," said Daniel Mayo, chief analyst of Ovum. "The cloud is now a growth driver for banks and insurers, rather than a medium just for bringing costs down. They are buying SaaS solutions to simply operations, develop better products and quickly enter new markets. The industry has made it clear that SaaS will radically change the banking and insurance landscape."

Banks and insurers face increasing pressure from new competitors, tighter regulatory requirements and highly sophisticated customers. These companies now realize that the cloud can create efficiencies and protect their competitive position, especially in the case of SaaS. Previously restricted to horizontal functions, the study reveals that SaaS is already supporting a majority of functions within the line of business as evidenced by 42 percent of banks and 36 percent of insurers.

Highlights from the survey include:

IT decision makers in retail banks expect to see the greater future investment in cloud. In total, 42 percent expect SaaS spend will "increase significantly" over the next 18 months, compared to 33 percent among insurers.
SaaS is the preferred option for 27 percent of banks and insurers, with a further 42 percent considering it for every IT project.
Within the lines of business, 49 percent of decision makers expect SaaS to see increased or significantly increased investment over the next 18 months. This will be focused most heavily on operational functions within insurers and delivering growth objectives for banks.
Among IT decision makers, 80 percent agreed with the view that SaaS enables organizations to respond more rapidly to market opportunities. Another 79 percent agree that SaaS makes it easier for new entrants to the market.
Banks and insurers see concerns over regulatory compliance (36 percent), concerns over reliability and availability (35 percent) and the difficulty of integration SaaS with existing systems (31 percent) as the most important barriers to the greater adoption of SaaS.

This article has been extracted from, please click on this link to read the article in full

Montash is a multi-award winning, global technology recruitment firm. Specialising in permanent and contract positions across mid-senior appointments which cover a wide range of industry sectors and IT functions, including:

ERP, BI & Data, Information Security, IT Architecture & Strategy, Energy Technologies, Demand IT and Business Engagement, Digital and E-commerce, Infrastructure and Service Delivery, Project and Programme Delivery.

With offices based in London, Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid-management in permanent and contract roles.

comments powered by Disqus

Social Stream

Latest News


Virgin Atlantic adopts Salesforce to promote ...

2016-10-26 10:00:00 +0100

Salesforce, one of the global leaders in Customer Relationship Management (CRM) tools, is used by thousands of companies around the world. Now, Virgin Atlantic Airlines has said that not only do the solutions provide an effective modern tool for business, but they can also be used to promote community culture. Speaking about the benefits that his firm has seen, Virgin Atlantic Head of Global Sales Effectiveness Spencer Collins said that the solution pro...


SAP announces partnership with STC

2016-10-25 10:00:00 +0100

One of the world’s leading providers of enterprise resource planning (ERP) solutions, SAP, has revealed that it is partnering with STC Advanced Solutions to offer both private and public sector organisations more empowerment. The two firms will be working alongside one another to provide cloud-based subscription services to firms of all sizes. This will help to deliver better information communication technology (ICT) across the Kingdom of Saudi Arabia....