Asian Banks Are Embracing Cloud Computing Faster Than You Think

As research for my upcoming report on cloud adoption among banks in Asia Pacific (AP), I’ve spent the past several months interviewing senior IT and business decision makers at banks and other financial institutions across the region. I’ve also met with banking regulators and spoken with cloud providers with a strong AP presence. Look for the full report early in the new year. In the meantime, I wanted to share some key findings.

  • Cloud adoption is among the top priorities for most banks in the region. In fact, contrary to popular belief, I’d categorize cloud adoption as nearly mainstream among banks in many parts of Asia Pacific. But adoption drivers vary based on the cloud approach. Private cloud initiatives, for instance, centered on data center transformation to drive improved operational efficiency and cost savings. Public cloud initiatives typically focus on expanding mobile banking capabilities and other customer-facing systems of engagement — the key to customer retention and overall growth.
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Meeting with Tech Mahindra – Insights and Reality Check on IT Automation

I recently had a meeting with executives from Tech Mahindra, an Indian-based IT services company, which was refreshing for the both the candor with which they discussed the overall mechanics of a support and integration model with significant components located half a world away, as well as their insights on the realities and limitations of automation, one of the hottest topics in IT operations today.

On the subject of the mechanics and process behind their global integration process, the eye opener for me was the depth of internal process behind the engagements. The common (possibly only common in my mind since I have had less exposure to these companies than some of my peers) mindset of “develop the specs, send them off and receive code back” is no longer even remotely possible. To perform a successful complex integration project takes a reliable set of processes that can link the efforts of the approximately 20 – 40% of the staff on-site with the client with the supporting teams back in India. Plus a massive investment in project management, development frameworks, and collaboration tools, a hallmark of all of the successful Indian service providers.

From a the client I&O group perspective, the relationship between the outsourcer and internal groups becomes much more than an arms-length process, but rather a tightly integrated team in which the main visible differentiator is who pays their salary rather than any strict team, task or function boundary. For the integrator, this is a strong positive, since it makes it difficult for the client to disengage, and gives the teams early knowledge of changes and new project opportunities. From the client side there are drawbacks and benefits – disengagement is difficult, but knowledge transfer is tightly integrated and efficient.

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Cloud Computing Predictions for 2014: Cloud Joins the Formal IT Portfolio

In 2013 enterprises got real about cloud computing. In 2014 we will integrate it into our existing IT portfolios - whether IT likes it or not. The moves by DevOps and line of business aren't going to stop and can't be ignored. So 2014 will be the year IT Ops relents, stops fighting and gets with the program formally by developing real strategies for embracing the cloud, managing cloud-based application deployments and empowering the business to keep being agile. As the Age of the Customer arrives, all the focus shifts to the Systems of Engagement and the agility in refining these critical customer tools. Cloud technologies and services represent the fastest way for the business to reach new buyers and breathe new life into aging applications. In 2014 cloud leverage will be both traditional and disruptive as the business and IT put cloud to work.

Below are the top ten cloud actions we predict will happen in enterprise IT environments in 2014. Recommendations for what Forrester clients should do about these changes can be found here. Our predictions are:

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