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Atos 2019 Predictions: Cloud Predictions Come Down to Cost, Control and Financial Play

Industry executives and experts share their predictions for 2019.  Read them in this 11th annual VMblog.com series exclusive.

Contributed by Justin Yunag, Chief Digital Officer, Financial Services, Atos North America

2019 Cloud Predictions Come Down to Cost, Control and Financial Play

The adoption of cloud technologies is accelerating in industries like financial services that have been necessarily cautious with sensitive data. It turns out that data security isn't the problem. Public cloud has other drawbacks, which is why I expect private cloud to be more popular next year.

By no means am I predicting the death of the cloud!

You just can't deny the positive impact of cloud-based data and infrastructure services: Scalable, cost-effective analytics. Faster time-to-value via self-service provisioning and DevOps. Better operating margins from reduced capital expenses and enablement of pay-per-use microservices. For those reasons and many others, I expect more large financial services companies to embrace cloud-based digital platforms.

Prediction 1: Public cloud users will shift back to private in 2019 for cost and control.

The appeal of migrating to the public cloud used to be that companies could pay less and control data more. Both have become disincentives for technology decision makers.

2019 will be the year of taking back what is owned by the company.

The public cloud comes with many additional costs. For example, ingress of data may be free, but cloud providers charge for every megabyte that leaves the network. The slow drip of egress adds up quickly. Private cloud providers, on the other hand, offer a flat rate every month.

In addition, long-term retention of data has exposed public cloud users to frequent SEC auditing, which amounts to the loss of control over a company's data.

Overall, design and functionality can be more difficult in the public cloud. And the costs tend to be higher than expected and budgeted. 

Prediction 2: Large enterprises will engage cloud services to rapidly launch digital financial services in 2019.

Startup applications like Venmo have seen huge success with consumers. Goldman Sachs' Marcus had 50,000 customers 2 weeks after launching. This is just the beginning. The number of enterprises using cloud capabilities to launch similar digital financial services will grow exponentially in the coming year.

A significant portion of this prediction will take place with large players in retail following leaders like Goldman Sachs. Financial services firms are learning that they, too, can pop up a bank-in-a-box with hardware, software, back-end infrastructure and consumer-facing applications provisioned in the cloud.

Companies no longer worry about traditional challenges like the costs of programing core banking systems or the on-goings of brick-and-mortar storefronts. They're no longer concerned with product and location-specific services. They're moving to more diverse, customer-centric product- and service-delivery methodologies that complete transactions in (or near) real time through network banks, fintechs and other partners.

No going back

The cloud has opened up too many avenues for improving customer engagement with targeted services and products. You can't un-open a gift like this. It doesn't matter if you choose private, public or a hybrid mix - the cloud allows you to offer the right product or service at the right time through each customer's preferred interaction channel. That's why I anticipate its growth in 2019, particularly in financial services. And private cloud will be the preferred platform.

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About the Author

 

Justin Yunag is a Digital Strategy and Global Technology Operations Subject Matter Expert (SME) specializing in Financial Services and Insurance verticals. As the Head of Digital Strategy for Financial Services & Insurance (FSI) in North America, Justin leads strategic direction, solution alignment, partnerships, delivery models and digital transformation efforts for the Atos FSI team and Financial Services clients.

Serving as the lead subject matter expert for all Atos Financial Services offerings, Justin represents the organization in North America and abroad to align core competencies with market demands, customer requirements and forward-focused innovation.

Published Wednesday, January 02, 2019 7:19 AM by David Marshall
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