Cloud Pushes Further Into Financial Services - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Cloud // Infrastructure as a Service

Cloud Pushes Further Into Financial Services

Early adopters' success leads investment banks, brokers, market makers, and asset managers to push more sophisticated applications into the private cloud.

In the span of a few short years, cloud computing has gone from being an enigmatic and somewhat exotic technology management model to a dominant force that is changing how business heads relate to and value the underlying technology that supports business growth.

In the financial markets in particular, the implications of cloud computing on the business, however, have been neither clearly defined by the service provider nor clearly understood by the average consumer. Admittedly, early descriptions and definitions of cloud computing often relied on metaphors and analogies rather than concrete terms and value propositions. (By far my favorite analogy was the comparison to a "Mashup DJ" who blends multiple songs across various music genres into a continuous, uniform audio mix.)

The Rise of Financial Clouds

The economic downturn in 2008, often cited as the catalyst for greater adoption of cloud computing in the financial services industry, put cloud computing and its applicability in the industry under the spotlight. And while the downturn likely did create a number of new adopters of cloud computing services that were looking to achieve greater cost efficiency in a bleak market, the long-term trend of adoption already had been underway for several years among hedge funds and private equity firms. These earliest adopters in the alternative investments space generally had more-independent business models that afforded them greater agility to adopt new technologies and improve efficiency.

The successes of these early adopters--a group that includes some of the early high-frequency trading firms in 2007 that often leveraged private cloud services to deploy colocated strategies on dedicated hardware--led to a general validation and acceptance of cloud computing's applicability in finance. It was a tipping point that the industry hit in early 2010. Adoption rates continued to increase in 2011, and the market has indicated that it is ready to adopt cloud computing into the mainstream.

Read the rest of this article on Wall Street & Technology.

As enterprises ramp up cloud adoption, service-level agreements play a major role in ensuring quality enterprise application performance. Follow our four-step process to ensure providers live up to their end of the deal. It's all in our Cloud SLA report. (Free registration required.)

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Slideshows
10 Things Your Artificial Intelligence Initiative Needs to Succeed
Lisa Morgan, Freelance Writer,  4/20/2021
News
Tech Spending Climbs as Digital Business Initiatives Grow
Jessica Davis, Senior Editor, Enterprise Apps,  4/22/2021
Commentary
Optimizing the CIO and CFO Relationship
Mary E. Shacklett, Technology commentator and President of Transworld Data,  4/13/2021
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
Slideshows
Flash Poll