Moving Mission-Critical Functions to the Cloud
![anthony-malakian-waters anthony-malakian-waters](/sites/default/files/styles/landscape_750_463/public/import/IMG/216/142216/anthony-malakian-waters.jpg.webp?h=373a525f&itok=zNeqXFEa)
At this year's North American Trading Architecture Summit (NATAS), panelists from the sell side ─ Citi, UBS, Deutsche Bank and State Street, to be specific ─ said that they would not be willing to move mission-critical functions to the cloud.
Now maybe I don't fully understand what exactly a "mission-critical" function is, but I am constantly writing about firms sending their email to the cloud; risk management systems, portfolio management systems, and even order management systems and execution management systems that are being run through the cloud too; and any number of data management capabilities that are being sent to the cloud. To that last point, fair enough, you will never see client information run through a public cloud. But internal, private clouds are clouds, nonetheless.
When the audience in attendance was asked to raise their hands if they have moved any of their business critical functions to the cloud, no one moved. Were they afraid to say? Did they not know? Was there really not a single company in the room that had moved mission critical platforms and services into the cloud? Was everyone simply in the room waiting for lunch to be served?
Then a CIO from a mid-sized asset manager came forward and made the case for mission critical functions to run through a non-public cloud that has a dedicated network to back up the system.
"We have moved some very important functions out [to the cloud] through a SaaS model," the CIO said. "With a dedicated network to those functions, I don't see why we can't move mission critical functions out there. For us we say cloud implies access over the Internet; I would not put mission critical functions with reliance on access to the Internet. But with the traditional network going out of two sides of your building, I think we would consider mission critical functions in the cloud."
I think that if we're going to have an honest discussion about cloud, then we need to first define what we're talking about when we say cloud (and most importantly, private versus public, as the latter is not viable for mission-critical) and then we need to define what exact systems and platforms are mission-critical, and which systems can handle an outage without wreaking havoc on the institution, making them better targets for a public cloud).
The best people to lead these conversations are the technologists. Business leaders and traders aren't going to have the understanding as to the differences of a private cloud versus Amazon Web Services (AWS) or Google's cloud. They don't know how an outage occurs and what it means to their trading systems.
This isn't just a conversation about a data breach that leaks client information ─ that's the "worst nightmare scenario". I do believe that mission-critical functions are moving to the cloud in ever-increasing droves; I just think that semantics are getting in the way of this conversation.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
Startup helps buy-side firms retain ‘control’ over analytics
ExeQution Analytics provides a structured and flexible analytics framework based on the q programming language that can be integrated with kdb+ platforms.
The IMD Wrap: With Bloomberg’s headset app, you’ll never look at data the same way again
Max recently wrote about new developments being added to Bloomberg Pro for Vision. Today he gives a more personal perspective on the new technology.
LSEG unveils Workspace Teams, other products of Microsoft deal
The exchange revealed new developments in the ongoing Workspace/Teams collaboration as it works with Big Tech to improve trader workflows.
IBM report finds ‘shadow’ data significant contributor to data breaches
As AI and cloud take on greater importance in the capital markets, firms need to consider their threat impact zones.
Bloomberg adds AI earnings summaries to Apple Vision Pro app
The vendor continues to add content and functionality to its Bloomberg Pro for Vision app, which sits at the convergence of spatial and mobile computing.
SS&C continues Blue Prism rollout, eyes other acquisition targets
The company is focusing on organic growth while keeping its eye on potential acquisitions.
CME: CFTC OKs clearing move to Google Cloud
The CFTC has given the Chicago-based exchange approval to run its clearing and settlement infrastructure on the Google Cloud Platform, while the exchange and vendor have extended their partnership to last until at least 2037.
Once a blockchain cheerleader, Axoni changes its playbook
The fintech, whose origins can be traced back to the genesis of capital markets’ complicated flirtation with DLT, has largely ditched the tech as the foundation of its data synchronization offering, opting for more familiar territory.