Market Trends of Cloud Migration Industry
BFSI Expected to Witness Significant Growth
- Banking and financial organizations are accelerating the migration toward cloud solutions owing to benefits such as flexibility, agility, and integration of emerging technologies and the FinTech ecosystems. Cloud solutions are helping banks cut down expenses by significantly reducing infrastructure costs.
- Such instances have boosted the adoption of cloud services among the BFSI sector as well as other end-user industries, and market vendors are gaining significant traction.By 2023, the insurance and banking industries had adopted 11.4 and 10.9 cloud services each. Currently, businesses across various sectors typically utilize approximately eight cloud services, often sourced from multiple vendors.
- Many vendors are providing IaaS and PaaS applications to eliminate the need to manage, host, maintain, update, and scale service operations targeted toward the BFSI sectors. Banks widely recognize that a cloud infrastructure can help them pursue sweeping modernization initiatives, including operational and customer-facing programs supported by AI, blockchain, and software containers.
- Banks are also adopting Cloud migration technology through strategic partnerships with cloud service-providing companies. For instance, in May 2022, Jefferies Financial Group Inc. is partnering with Amazon to move its information-technology services to the cloud. This is the latest step by a financial business that has just begun to grow into cloud-based software and data analytics. Jefferies is transferring its essential business processes, internal and customer-facing apps, IT resources, and data to Amazon Web Services under a four-year arrangement.
- To provide a digital banking experience to customers, banking organizations are adopting cloud migration technology. For instance, in June 2024, Kyndryl, one of the leading global IT infrastructure service providers, has unveiled an expanded collaboration with the National Bank of Canada. The goal is to expedite the bank's digital evolution and migration to the cloud. Having long been a stalwart in bolstering the National Bank's essential infrastructure, Kyndryl is spearheading efforts to revamp the bank's setup. This includes optimizing workloads, advanced technical liabilities, and fostering innovation throughout the organization.
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North America Expected to Hold the Largest Market Share
- North America is among the leading innovators and pioneers in cloud migration and holds a significant share of the market. The region also has a strong foothold on cloud migration vendors, which adds to its growth. Some companies include IBM Corporation, Microsoft Corporation, Amazon Web Services Inc., Cisco Systems Inc., Cognizant Technology Solutions Corporation, and Google Inc.
- The benefits offered by moving data and applications, among other information, to the cloud are pushing many organizations in the region to adopt cloud migration services, thereby impacting the market's growth positively, and also the companies in the North American region are making strategic collaborations, business expansion to propel the cloud migration.
- In March 2024, Fujitsu Limited and Amazon Web Services (AWS) announced an expanded partnership to accelerate the modernization of legacy applications on AWS Cloud. The Modernization Acceleration Joint Initiative will assess, migrate, and modernize mission-critical applications from on-premise mainframes and UNIX servers to AWS Cloud, supporting industries like finance, retail, and automotive.
- Furthermore, in August 2022, Next Pathway Inc., the Automated Cloud Migration company in Toronto, announced a collaboration with Microsoft to accelerate the migration from legacy data warehouses and data lakes to Microsoft Azure. Shift Analyzer provides a comprehensive review of source legacy application workloads to review the code types and objects present. Shift Translator accelerates the translation, testing, and migration of complex workloads such as SQL, Stored Procedures, ETL pipelines/workflows, and various other code types. Furthermore, Next Pathway's technology can easily and efficiently transfer workloads from other cloud platforms and cloud data warehouses to Azure.
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