By the end of 2019, worldwide spending on Digital Transformation will reach US$1.7 trillion. That’s a 42% increase from 2017, according to IDC Futurescape: Worldwide Digital Transformation 2018 Predictions. But you can’t just throw money at a problem and expect it to fix itself. To unlock the full potential of digital transformation, it is essential that organisations understand the key pillars in transitioning from a traditional enterprise to a modern software company. These include: the adoption of agile methodologies, deployment of a next generation cloud-native platform, and creating and responding to fast-feedback loops.
First, we’ll start with a quick explanation of why banks would want to adopt cloud technologies. Then we’ll talk about what one bank has gained from a wholehearted embrace of digital transformation.
There are different approaches organisations can take when pivoting to cloud.
One of which is cloud-enabled applications: these are applications that were originally developed for deployment in a traditional data center but have moved to cloud. Some of the characteristics of the applications have been tweaked of customised for the cloud.
Cloud-native, on the other hand, is an approach to building and running applications that leverages the advantages of the cloud computing delivery model. It is about how applications are created and deployed, rather than where. Developing and operating applications in a cloud-native way will allow banks to bring new ideas to market faster and respond sooner to customer demands whether the applications are running in the public cloud or on-premise in a hybrid cloud model.
Either way, a well-developed cloud strategy requires a platform for creating and deploying cloud-native applications and services that automates and integrates these concepts:
According to Pivotal’s recent Benchmark report, where we polled over 1,600 respondents from across the globe (including Australia, Singapore, and Japan) and numerous industries, we discovered that only 34% of banking apps are built to run in the cloud. This means the road to cloud is just beginning for this particular industry. However, some banks are starting to lead the way.
Southeast Asia’s internet economy is projected to hit US$200 billion by 2025. As the third largest market globally in terms of internet users, tapping on the digital natives is definitely the way to go for organisations in the region.
