Last week I presented an overview of cloud adoption trends in the banking sector in Asia to a panel of financial services regulators in Hong Kong. The presentation showcased a few cloud case studies including CBA, ING Direct, and NAB in Australia. I focused on the business value that these banks have realized through the adoption of cloud concepts, while remaining compliant with the local regulatory environments. These banks have also developed a strong competitive advantage: They know how to do cloud. Ultimately, I believe that cloud is a capability that banks will have to master in order to build an agility advantage. For instance, cloud is a key enabler of Yuebao, Alibaba’s new Internet finance business. 80 million users in less than 10 months? Only cloud architecture can enable that type of agility and scale (an idea that Hong Kong regulators clearly overlooked).
Through this process, we uncovered a market that we believe is currently ripe for a major disruption: market demand for managed security services (MSS) remains extremely strong, customer satisfaction is higher than we’ve seen in the past, and current MSSPs tend to compete on delivery, customer service, and cost.
This isn’t to say MSSPs all currently offer the same services with the same level of quality – not by a long shot. Selecting the right provider still means that you must understand your needs and the areas you feel they can enhance your security program the most. Each MSSP we evaluated has solid overall security capabilities, but has unique strengths in certain security areas and use different deployment methods to bring their offerings to bear.
At the same time, however, we hear more decisions today come down to cost and execution, and as this becomes more commonplace, we begin to prepare ourselves for a shift in the market. In fact, we believe we’ll see significant changes over the next couple of years for three primary reasons: