Cloud Computing in South Korea’s Financial Industry: Obstacles and Opportunity

by KyongSun Kong, April 2, 2012
Industry Trends
Asia-Pacific

Abstract

Until recently, South Korea’s financial industry use of cloud computing was lagging that of other countries. The industry now seems to be making up for lost time as interest in cloud computing has surged and the market continues to grow.

In a new report, Cloud Computing in South Korea’s Financial Industry: Obstacles and Opportunity, Celent offers a penetrating analysis of the state of cloud computing at South Korea’s domestic financial institutions. While these firms were comparatively slow out of the gate, taking a cautious approach to introducing cloud computing, adoption of virtual desktop infrastructure (VDI) has recently accelerated. This shift has been driven by financial firms looking for improvements in the following areas:

  • Enhanced security
  • Heightened efficiency of IT administration
  • Reduced long-term costs

“So far, South Korean financial institutions have primarily limited their use of cloud computing to VDI. They are beginning to awake to the possibilities of the cloud in other areas, but are still taking a cautious, if not passive approach to cloud solutions apart from VDI,” says KyongSun Kong, Analyst with Celent's Asian Financial Services Group and author of the report. “There are a number of issues that must be overcome in order to pave the way for intensified use of cloud computing. Discussion and initiatives on the part of financial institutions, IT vendors, and regulatory authorities will prove important in surmounting these obstacles.”

This report analyzes the proliferation of cloud computing in the domestic South Korean financial industry market. It identifies issues to be overcome to facilitate greater adoption of cloud computing and delves into factors that are driving adoption of cloud solutions and factors that could be used to drive growth of cloud computing in the nation’s financial industry.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Into the Cloud: Adoption Accelerating at South Korean Financial Institutions

5

The State of Cloud Computing at South Korean Financial Institutions

7

Cloud Growth: Obstacles and Opportunity

11

Conclusions

15

Leveraging Celent’s Expertise

17

Related Celent Research

18

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