Enterprises are migrating their core financial applications to the cloud at a faster than expected pace in the pursuit of simpler upgrades and greater efficiency, Gartner research shows.
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In a poll of 439 senior financial executives from across the globe, 36% of respondents said cloud will be the deployment environment of choice for more than half of their financial applications and systems of record by 2020.
John Van Decker, research vice-president at Gartner, said the trend is being fuelled in part by the demand for self-service applications that are easier to upgrade.
“We’ve found that most clients asking about these financial business application markets are solely interested in the cloud option,” he said.
“Many organisations that currently run on-premise solutions want to move to newer solutions that put more control in the hands of the user, and reduce the effort required when compared with on-premise upgrades.”
Small to medium-sized enterprises (SMEs) appear to be migrating their financial applications to the cloud at a faster rate than enterprises, the Gartner data suggests, with 44.6% of small firms planning to move their workloads to the cloud over the next three years compared with 40.4% of larger organisations.
Even so, Gartner said chief financial officers (CFOs) remain cautious about moving data off-premise overall, but the analyst house expects the next five to 10 years will see many embark on a steady migration of applications to the cloud.
It is in organisations’ best interests to take their time over these migrations, Gartner continued, to ensure the cloud applications they opt for meet their individual business needs.
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These trends have not gone unnoticed by the supplier community, added Van Decker, with many suppliers revamping their existing on-premise platforms to make them cloud ready.
“The cloud has changed the game for financial management business applications. Suppliers have responded with new and rearchitected platforms in the cloud, and most have de-emphasized their on-premise solutions in favour of cloud implementations, which are more profitable for the suppliers, while reducing the effort of local IT support,” he added.