What NYSE’s Adoption of Cloud Computing Means for the Industry
“Early to bed and early to rise,
Makes a man healthy, wealthy and wise.”
All of us, at some point in our childhoods have encountered this maxim, drilling into our young minds the supposed correlation between early bedtimes and physical, intellectual and financial vigor. It’s no coincidence that after writing about the possible physical (as in health) implications of cloud computing (See: Health Care’s Reservations about Cloud Computing ), I am about to present two articles on its intellectual and financial implications. This is the one dealing with the more material of human desires – money.
It’s not that I have not discussed the financial implications of cloud computing before, but they have been from the point of view of reducing expenditure (See: How Cloud Computing Can Save You Money and Saving Money on Rent by Going on the Cloud). This article, however, explores the money-making opportunities afforded by cloud computing in the light of the NYSE’s (New York Stock Exchange) recent love for the technology.
While NYSE’s preeminence in the financial world is well known and “Wall Street” part of the popular lexicon (as the eponymously-named movies clearly demonstrate), let me just state that it is the world’s largest stock exchange by market capitalization of its listed companies at $13.39 trillion as of December 2010. To put things into perspective, the GDP of the entire country is around the same figure. In other words, it is the edifice of capitalism.
On June 1 earlier this month, the technology services arm of the New York Stock Exchange Euronext, the company that operates the NYSE, announced the launch of the Capital Markets Community Platform (CMCP), a service billed as the financial service industry’s first cloud platform. According to Dominique Cerutti, NYSE Euronext president and CEO, the “game-changing” platform will offer electronic trading, market data analysis, algorithm testing and regulatory reporting.
Although there were only two registered users at the time of launch, Stanley Young, CEO of NYSE Technologies, said cloud computing is the future of electronic trading. “I’m going to stick my neck out here. We’ve got 1,200 clients. I’d like to see all 1,200 on the service,” he said. EMC and VMware were the two cloud computing giants who worked with NYSE Technologies to develop CMCP.
The “community cloud” will not be connected to the rest of the Internet, but users will be able to interact with each other, according to Carl Eschenbach, head of cloud systems at VMware. “Cloud computing won’t happen overnight; this is just the next step,” he added. “We’re seeing the first of a wave of these special-purpose clouds,” said EMC President and COO Howard Elias. He said customers will benefit from greater efficiency, control and choice by moving specific workloads to the cloud infrastructure.
Now, coming back to the question posed in the title of the article, “What does this mean for the cloud computing industry?” Personally speaking, I believe it’s a huge shot in the arm for cloud computing. Stock exchanges are very particular of the technologies they use, and understandably so. Considering that average trading volume on the NYSE is more than $150 billion, even a small glitch in a single platform can have disastrous results.
The fact that the largest stock exchange in the world has shown faith in cloud computing as a technology is very encouraging for the industry, especially with all the bad press it has got recently (See: Should You Be Concerned? A List of Recent Cloud Computing Failures – Intuit goes down). With security and dependability being of paramount importance in trading, and these being two important criteria on which cloud computing have been judged harshly in recent times, this decision by the NYSE will potential have far-reaching implications in its universal acceptability.
By Sourya Biswas