According to global consultancy group Accenture, around 5-10% of capital markets firms’ technology solutions currently sit in the public cloud. However, this proportion is likely to grow fast. As Accenture puts it: “many capital markets firms believe they’re at a defining moment and need to become as ‘cloud enabled’ as possible to increase agility, efficiency and revenue streams, manage risk and security, and secure their future competitiveness and relevance”.
There is also a strong case to be made for cloud-first technology deployment for asset managers (i.e., an approach where the cloud is considered as the go-to service delivery model). Even before COVID-19-enforced home working made the business case for cloud-first solutions more compelling, Tabb Group, an industry analyst, found that a significant number of buy-side firms were considering moving their systems into the cloud.
In addition to cost-savings and the appeal of consumption-based pricing, a cloud-first approach provides a range of benefits for buy-side firms including agility, scalability and enhanced innovation capabilities. The cloud also allows data to flow more freely in firms, enabling users to access the data they need, when they need it and empowering better insights and decision making. However, these benefits are only achievable if the cloud is adopted strategically, with an eye on operational needs and the service boundaries of the firm.
John Heavey, Product Manager at RIMES, explains: “If a firm is truly cloud-first it will have gone through the necessary due diligence to ensure that the approach delivers against its business requirements. That includes a forensic review of business processes to ensure that cloud services deliver on digital transformation imperatives.
“The firm will also have implemented technical fundamentals, such as establishing a robust data protection and informational security policy and an API framework so it can connect with cloud-first strategic partners and share data and capabilities for new customer propositions and operational efficiencies. Finally, the company will have put in place a change management program to ensure that employees are brought along on the journey and are empowered to make the most of their cloud tools.
“With this foundation in place, firms will benefit from a vastly improved data strategy that’s enabled by their cloud-first infrastructure. The approach reduces lock-in with providers and partners, while making the relationships retained more strategic and rewarding, affording greater visibility and control of costs. Perhaps most importantly, firms will benefit from early realization of business value as the data supply chain is mobilized with transparency and governance, and microservices enable self-service so users can find, understand, trust and interact with the firm’s data.”
RIMES Managed Data Services is a proven data operating platform that helps firms of all sizes and in all regions align their data consumption closely with business needs. Contact us to learn more.
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