Aite Group (an independent research and advisory firm focused on business, technology, and regulatory issues and their impact on the financial services industry) recently published an insightful research report regarding a trend we’re following closely – Capital Markets in the Cloud: Not Such a Gray Area.
Among other things, the report contains clear definitions of different service types in an area where buzzwords and misused terms are common.
Results of their survey indicate the cloud is now gaining traction, particularly in the area of reference data management. This supports GoldenSource’s view that the industry is at a point of transformation. We’re one step closer to realizing a vision where business systems can access data as easily as the computers which run them access electrical power.
The report also reflects on what the tipping points for investment are.
Numerous internal and external drivers exist for investment in cloud technology, ranging from diminishing staff numbers to increased regulatory reporting. However, the key “tipping points” in the realm of data management appears to be twofold: ensuring the future scalability of the function in response to regulatory or market pressure, whilst continuing to reduce costs. Cloud technology could be the answer for firms that need to achieve a lower TCO whilst simultaneously supporting and managing a higher volume of data. Consequently, an increasing number of financial institutions are considering cloud technology as a viable option.
Getting to the point where data comes through a plug in the wall won’t be easy, and it won’t be quick.
We’re still in the stage where early adopters are experimenting with a variety of different models. GoldenSource either directly or through partnerships offers every variation of on-premise, ASP, private cloud (emphasis on private!), managed service, and shared service utility. Each new institution we engage with has their own particular preference at the moment. But we are seeing increasing levels of acceptance across capital markets, in alignment with Aite Group’s findings.
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