Cloud computing could frustrate and irritate finance sector

Cloud computing take up in the financial services sector is by no means a done deal, because business users still do not understand its relevance, according...

Cloud computing take up in the financial services sector is by no means a done deal, because business users still do not understand its relevance, according to the latest research.

Research carried of by think tank the Financial Services Club, which questioned 230 financial services professionals, found that only a quarter believe that the business users are driving the take up of cloud computing.

This compares to 56% who said IT departments and IT suppliers are pushing the service.

Chris Skinner, chairman at The Financial Services Club, said cloud computing offers the potential to deliver significant benefits in terms of time and money but there are obstacles to overcome.

"The biggest issue is not with the technology, but with how suppliers discuss it. First, too many claim their solutions are cloud-related because anyone who offers any kind of outsourced service is calling it cloud right now. Second, the business applications, needs, benefits and fit are not being articulated well enough and, without such positioning, cloud may just go the way of other technology hype cycles, as in confusion and irritation."

Companies involved with investment such as trading exchanges and investment banks, which are heavy users of technology and tend to pioneer IT, are the only segment of financial services to be pushing cloud computing.

Skinner said that the definition of cloud computing is unclear, the benefits to the business are not being presented well. "The technology industry needs to make the definition and relevance of cloud computing far clearer to banks and insurers, if this is to be a market that takes off."

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