In January 2020, an independent research firm completed a survey of 1,550 enterprises across 18 countries on what their data protection challenges and goals were. That research included 217 financial services organisations.
The research project was commissioned by Veeam and helmed by two former industry analysts with 60 years of experience in the data protection industry between them. In this report, we explore the results and insights from the survey, detailing the digital transformation paths and ambitions for financial services.
Digital transformation and IT modernisation in financial services
Today’s financial services organisations are driving this industry to new heights and experiences. Modern mobile and cloud-first experiences are providing a greater level of business customisation and customer intimacy than ever before.
While technology is constantly moving forward, changing, and transforming, it’s also introducing new challenges that must be answered. New regulations regarding data and privacy, defending against cyber-threats, and driving new customer experiences all provide significant pressure.
Because of this, financial services organisations often look to the leading edge of digital transformation, with a strong focus on cloud technologies. To follow this trajectory and take advantage of its lessons, it’s important to examine the industry landscape as a whole — its solutions, challenges, goals, and where it may be heading next.
We were interested in their approach toward data protection and management today, and how they’re preparing for the IT challenges to come, as well as more aspirational goals of IT modernisation and digital transformation.
The business impact of data protection
As organisations strive to modernise, streamlining and automating operations is a major benefit in getting the most out of existing resources. This remains true for the financial services sector, and while there are great intentions to embrace digital transformation and modern services, the reliance on legacy solutions and the dedicated resources committed to these, as well as the lack of budget, can be major barriers. Too often, financial organisations don’t look to the data management and protection services as sources of innovation and resource optimisation, where the effect can be considerable.
Data has always been the heart and soul of financial services, so it’s no surprise how important data protection has become for IT teams in recent years. However, many financial services organisations still rely on aging platforms to protect their data without fully understanding the impact this can have on their business — and the customers they serve. 42% cite this dependency as a barrier to transformation.
Veeam recently published its Data Protection Trends Report for 2020. This report is a little different from what you’d expect from a data protection vendor:
- It’s an unbiased survey of 1,550 enterprises (greater than 1,000 employees each) from around the world. Veeam contracted with a third-party analyst firm to conduct the blind survey so that Veeam could help our marketplace quantify and understand what organizations are struggling with and aspiring to achieve in data protection.
- The industry report is an unfiltered view on the data and its inferences into what IT and data protection look like today, including responses from both IT professionals and senior executives. You will also notice a few green side-bar boxes where the Veeam Product Managers added Veeam’s perspective to the report, as well.
- The data was interpreted, and the report authored, by two former industry analysts. My coauthor, Dave Russell (@BackupDave), was the lead author on the Gartner Magic Quadrant (MQ) for Backup for years, while I (@JBuff) was the principal analyst for data protection at the Enterprise Strategy Group. We each have 30+ years in the data protection industry, starting as IT professionals, then developing backup products within the vendor community, later serving as industry analysts, and eventually joining Veeam; both as Vice Presidents of Strategy.
As an aside, Dave and I also host a weekly LinkedIn LiveStream called “Industry Insights” where one or both of us talk about industry research and news; again, with an unbiased perspective for the first 20 minutes and then a short Veeam perspective to close out the half hour. Check us out at LINK.
To me, the single, most interesting survey question was “Which of the following would drive your organization to change its primary backup solution to a new solution or service?“