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Global banks could save $15 billion from cloud adoption by 2019

Fri 17 Mar 2017

Research undertaken by IDC Financial Insights on behalf of Reuters indicates that the worldwide banking industry is among the sectors most likely to benefit in significant financial terms by embracing cloud-based infrastructure.

According to the commissioned report, running costs with cloud infrastructure via AWS is likely to be a third of a proprietary approach, with large-scale banks running their own data centres and dedicated local or private infrastructure. The report estimates that the latter approach on a yearly basis would run to $918, 577, whilst an AWS-based scheme offering the same provisioning would come in at $327,475.

The estimations include IT infrastructure and hosting fees, staff deployment and management, and unplanned downtime.

The report, though apparently independent in nature, has interesting timing, since AWS continues the task of damage limitation in light of a serious outage that occurred at the end of last month.

Downtime at the company’s S3 storage service, amongst dozens of other ancillary services outgoing from Amazon’s Northern Virginia data centre, have clearly caused increased circumspection for large-scale business’s estimation of the durability and resilience of cloud-based operations.

The February AWS outage was attributed to human error, mirroring a similar incident that affected Microsoft’s Azure provisioning in 2014.

The AWS downtime was resultant from an employee debugging a billing system issue. An incorrectly entered command intended to spin down a limited number of servers on an S3 subsystem used by the billing process unfortunately extended its scope to a greater number of AWS servers which were not involved in the process.

The Reuters report suggests that the relative resilience of financial companies’ online services in the face of the February AWS outage would have been apocalyptic only two years ago, and views the incident more in the light of a successful stress test – if an unintentional one.

The report also notes that major financial providers such as Capital One and Liberty Mutual are major customers for cloud provisioning via large technology vendors, along with the Financial Industry Regulatory Authority (FINRA), The Depository Trust and Nasdaq.

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AWS disaster disaster recovery economy FinTech news
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