Capital markets firms turning to the cloud

Friday, March 04, 2011

Capital markets firms worldwide are expected to increase their adoption of cloud computing this year, as they look to reduce expenditure on IT solutions and improve their overall operations, a recent study found.

According to a study by the Aite Group, capital markets firms, including those on Wall Street, will spend $44 billion on technology this year. This represents a 6 percent increase over 2010, when firms spent $42 billion, Wall Street & Technology reports.

Cloud computing will represent a significant portion of IT budgets, the study found, with 46 percent of survey respondents indicating they will explore the technology this year. According to the report, only 27 percent of respondents said they had no cloud computing plans for 2011, compared to nearly half in 2010.

Additionally, 18 percent said they already had plans to implement cloud computing in 2011, an 8 percentage point increase from 2010.

Historically, highly regulated industries have been more hesitant than others to deploy cloud services. But this is showing signs of changing. According to a recent IDC report, banking, healthcare and government organizations are expected to increase their use of cloud computing through 2014.