REUTERS / David Mercado Why Trusted Data Belongs In The Cloud September 2018 Brennan Carley Global Head, Enterprise Thomson Reuters Financial & Risk
Why Trusted Data Belongs In The Cloud Issues with the traditional approach to data consumption The standard practice of having volumes of content delivered to your servers and purchasing significant compute ability — especially for short term use — can be unnecessarily costly and often doesn’t offer enough flexibility. Many customers estimate that for every US$1 spent on acquiring data, a further $4-8 dollars are spent managing it. Overall, $34 billion is spent managing internal data across financial institutions. The third largest cost for an organisation behind staff and building costs.
Why Trusted Data Belongs In The Cloud Enter the cloud… Use of the cloud can address many short term, large scale compute and/or data storage needs. Using the cloud to access large volumes of data on an ad-hoc basis offers: • Genuine flexibility, with on demand availability. Simply subscribe to terabytes of data to quickly and efficiently access data as and when you need it in an agile, responsive manner. • Value. Data may only be required for short periods of time, meaning that it makes commercial sense to pay to access data only when it’s needed.
Why Trusted Data Belongs In The Cloud Enter the cloud… Indeed investment in the public cloud is % of IT budget committed to the cloud set to increase. In a recent global survey conducted by Thomson Reuters of 250 senior financial services technology leaders (CTOs, CIOs, CDOs), firms reported that investment will grow to 47% of IT budget in 2019, up from 30% in 2017.
Why Trusted Data Belongs In The Cloud Enter the cloud… And over 90% of firms say that they will use the Financial firms planning to use the public cloud for the majority of their market data needs public cloud for the majority of their market data needs in less than four years. A quarter (24%) expect to use the public cloud for the majority of their market data needs within a year.
Why Trusted Data Belongs In The Cloud Enter the cloud… Here are the top 10 benefits of moving to the Financial firms planning to use the public cloud for the majority of their market data needs public cloud for market data that respondents identified.
Why Trusted Data Belongs In The Cloud Cloud use cases The front office: Finding alpha Cost-effective, quick access to trusted, reliable data is a fundamental need across organizational departments. For example, quant analysts need to access significant volumes of time series data on an ad-hoc basis as part of ongoing analytical modeling or algorithm back testing. More than this, as a trader, quant analyst or researcher, finding alpha is of paramount importance. Harnessing the power of the cloud can deliver significant advantages because there is no limit to your ability to compute your trading strategies.
Why Trusted Data Belongs In The Cloud Cloud use cases Mid and back offices: Operational efficiency Middle office staff need reliable access to market price data as quickly and efficiently as possible. In addition, reference data is used extensively across front, middle, and back offices for trade decision support, modeling, and settlement/end of day purposes.
Why Trusted Data Belongs In The Cloud Cloud use cases From our recent industry survey, we can see that back office functions are leading the way in adoption but front office are already realizing the benefits… Already moved Currently Migrating Not yet migrating Never
Why Trusted Data Belongs In The Cloud Cloud use cases … And that there’s a clear difference between the present adoption rates of public cloud for real-time and non real-time market data (14 and 37% respectively).
Why Trusted Data Belongs In The Cloud Addressing security fears In the past, security concerns around data in the cloud were prevalent, but this mindset has now changed. In fact, security has become a primary reason to adopt the cloud. Vast investment by cloud providers means that the cloud is now one of the safest places to do business. Many organizations are now expecting to move 90 percent of all applications and workloads to the public cloud within the next three to five years . While security concerns may persist in some geographies, fears must be weighed against the opportunity cost of not tapping into this ever-evolving resource.
Why Trusted Data Belongs In The Cloud The win-win-win solution When it comes to getting the most from data, the best solution is a perfectly balanced three way partnership between cloud provider, data provider and customer. We have found: 1) Most firms have a multi-vendor cloud strategy 2) There is a fairly even split between lift-and-shift vs incremental approaches to the cloud 3) Cloud drives clear recognition of the value of well structured, clean, and connected/linked data
Why Trusted Data Belongs In The Cloud The win-win-win solution We identified a number of operational strategies employed to manage cloud implementation. There is a modest presence— 33 percent —of any version of a cloud tsar within surveyed organizations. A much higher proportion— 72 percent — said they had an operational team working across business units to promote cloud excellence.
Our Cloud Strategy: 3 Dimensions Build on Deliver in Offer services as the Cloud the Cloud a Cloud Run our own systems Meet our customers Lightweight delivery on cloud, share best and partners where of TR services practices they choose Agile, flexible, elastic: You can easily consume our Ability to consume Building all new products content and services market data and desktop on the cloud via the cloud of your choice, services with zero/light or even in multiple clouds footprint (as a service) 14
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