NEW YORK–The world’s largest banks will save approximately $15 billion by 2019 as the result of adopting cloud-based technologies, cutting their own tech infrastructure costs by 25%, according to a new analysis.
Research conducted by IDC Financial Insights at the behest of Reuters found that approximately two-thirds of global financial firms will be using cloud services in a significant way by 2018.
“Developing an application on the cloud can help reduce the time it takes to launch from 89 days to 15 days, according to consultancy McKinsey & Company,” Reuters reported.
Among the big institutions that are already using shared cloud services from large technology vendors are JPMorgan Chase & Co, Goldman Sachs Group Inc, Capital One Financial Corp and Liberty Mutual Insurance, in addition to Nasdaq, The Depository Trust and Clearing Corporation (DTCC), and the Financial Industry Regulatory Authority (FINRA), the brokerage industry watchdog, Reuters reported.
Amazon is the biggest provider with 40% of public cloud business, according to Synergy Research. That market totaled $7 billion in Q4 2016 and is growing at an annual rate of 50%, Reuters said.
George Brady, who heads shared technology operations at Capital One, told Reuters the bank believes big tech companies had "controls for public cloud that are as good or better than capabilities we would provide."