capital markets cloud drivers
Plato said, “Courage is knowing what not to fear.” In 2012, the capital markets’ both sought knowledge and demonstrated courage with billion-dollar spending on cloud computing.

According to Celent’s recent report, Cloud Computing in Capital Markets spend on cloud stood at an estimated $2.3 billion.  With key benefits in mind, financial firms are overcoming their reluctance to tap into the cloud.  They understand that shifting projects and applications to the cloud helps reduce costs by reducing excess capacity, speeds up deployment times by leveraging existing infrastructure and provides scalable capacity for new projects. Celent’s estimation on the capital markets’ spend in 2013: $2.8 billion.

What will influence the capital markets’ move to the cloud in 2013?

  • The upcoming Volcker Rule will also have an influence on the demand of cloud services’ connectivity and platforms as banks continue to spin off their proprietary trading desks;
  • Novel deals like the one between Norwegian broker Christiania and execution specialist Neonet, in which the broker is outsourcing its execution via the cloud – will test the water for new entrants;
  • Cost reduction will be a major driver.  During the last year, capital markets firms have felt the pressure to streamline operations and cut costs.

Whether you’re a C-level executive or technology provider – regulations, industry partnerships and the ultimate goal to reduce costs and increase performance will influence you to either step in or dive into the cloud.