The Banking Industry Underestimates Costs of Cloud Migrations

Fadime Kaya, Martin Van Den Berg, Roel Wieringa, Marc Makkes

Research output: Chapter in Book/Report/Conference proceedingConference contributionAcademicpeer-review

Abstract

Cloud computing is a growing part of the IT industry and is seen collectively as a solution to manage data and systems effectively. In numerous areas, cloud computing is being used as the standard for deploying application areas include; banking, telecommunications, and logistics. However, migrating IT infrastructure and applications to the cloud can induce hidden and overlooked costs. This study examines the cloud migration process of ten international corporate banks, to explore and understand costs occurring during a cloud migration. We have identified that the banking industry underestimates cloud migration costs and that budgets are exceeded. The top five cost categories that are underestimated: (1) managing dependencies of applications, (2) legislation, (3) support required from other non IT departments, (4) re-architecting of applications, and (5) hiring of external contractors. Main reasons for overspending are: (1) lack of proper and rigorous business cases, (2) knowledge deficit related to cloud migrations and the corresponding IT-architecture, and (3) no clear cloud migration strategy. Cloud computing is a transformative technology which requires a rigorous approach to remain within budget and deliver the desired results.

Original languageEnglish
Title of host publicationProceedings - 2020 IEEE 22nd Conference on Business Informatics, CBI 2020
EditorsStephan Aier, Jaap Gordijn, Henderik A. Proper, Jan Verelst
PublisherIEEE
Pages300-309
Number of pages10
ISBN (Electronic)9781728199269
DOIs
Publication statusPublished - Jun 2020
Event22nd IEEE Conference on Business Informatics, CBI 2020 - Virtual Conference, Antwerp, Belgium
Duration: 22 Jun 202024 Jun 2020
Conference number: 22

Conference

Conference22nd IEEE Conference on Business Informatics, CBI 2020
Abbreviated titleCBI 2020
CountryBelgium
CityAntwerp
Period22/06/2024/06/20

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