Trading and Investment Companies will Increase Consumption of Cloud Services: Study Confirms - Build What's Next
Research Reports

Trading and Investment Companies will Increase Consumption of Cloud Services: Study Confirms

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Google Cloud commissioned survey by Coalition Greenwich on capital markets found 5 noteworthy insights on drivers for cloud adoption - common use cases and type of tech used. Read further for an overview of cloud adoption trends across market data.

While some traditional financial services companies have more slowly transitioned to the cloud, capital markets firms have embraced cloud computing across their entire value chains — front-, middle-, and back-office. We wanted to understand the dynamics behind this rapid adoption, the most common use cases, and the types of technology most in use, particularly as it relates to market data. Google Cloud commissioned Coalition Greenwich to survey 102 institutional capital markets professionals — at exchanges, trading systems, data aggregators, data producers, asset managers, hedge funds, and investment banks — in the United States, Canada, France, Germany, Italy, the Netherlands, Switzerland, and the United Kingdom. 

Our research found that while there are many drivers, demand for easier accessibility is fueling widespread adoption of cloud-based market data services, and associated trading infrastructures, across the buy side and sell side. In fact, 68% of sell-side and buy-side users find it critical for market data providers to offer public cloud-based data services. At the same time, exchanges, market data providers, aggregators, and trading systems are embracing the cloud as a delivery model by offering access to data directly via their own cloud services, APIs or partners.

Here were five noteworthy takeaways from the study: 

1. Cloud services are becoming ubiquitous for data deliveryToday, the cloud is pervasive, with 93% of exchanges, trading systems and data providers offering cloud-based data and services, according to surveyed executives. Moreover, 100% of those surveyed intend to offer new cloud-based services, such as derived data, in the next 12 months.

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2. Commercial and investment banks are offering additional connectivity, real-time data feeds, and trading applications delivered via the cloud,demonstrating that it’s not only exchanges, trading systems, and data providers that are moving rapidly to the cloud. Internal use cases abound as well, with 67% of those surveyed consuming cloud-deployed market data, primarily for data analytics. 88% of surveyed sell-side firms intend to consume cloud-based market data services, with digital transformation, data science and quant research as the top use cases.

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3. Buy side firms will consume even more cloud-deployed data. Today, 90% of surveyed buy-side firms are consuming cloud-deployed market data, mostly for portfolio management. 70% of buy-side firms intend to consume more public cloud-based market data services in the next 12 months, adding services such as compliance and regulatory reporting.

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4. AI/ML, powered by cloud, is moving out of the pilot phase and into mainstream useToday, 50% of exchanges, trading systems, and data providers are offering data products or services powered by AI/ML, and of those, 42% intend to offer AI-powered trade execution and trading analytics services in the next 12 months. Within commercial and investment banks, 55% said they are currently using AI/ML in the cloud, and while that was true for only 14% of overall buy-side respondents, 44% of large buy-side respondents are using it.

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5. Exchanges, trading systems, and data providers are prioritizing public cloud for internal insights71% of these firms are using the public cloud, mostly for data transmission, processing, analysis, and long-term data storage. Over the next 12 months, 33% of new public cloud workloads will focus on data mining, data insights and advanced analytics, while 28% of new AI/ML tooling and infrastructure investments will focus on faster analytics and risk reviews, and 27% on data quality maintenance.

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“We see new, dramatic shifts on the adoption of cloud across market data,” said David Easthope, Senior Analyst for Coalition Greenwich. “And we expect further proliferation of cloud-based services and greater consumption across the trading and investing lifecycle.”

Conclusions and future predictions

Based on the survey results, Coalition Greenwich predicts five following trends over the next 12 months:

  1. Exchanges and trading systems will continue to launch a wide array of new cloud-based and possibly cloud exclusive data services across derived data, end of day data, reference data and pricing data.
  2. Data providers will launch new data products such as pre-trade analytics powered by AI/ML in the cloud.
  3. Commercial and investment banks will offer additional connectivity, real-time data feeds, and trading applications delivered via the cloud.
  4. Buy-side firms will consume even more cloud-deployed data, including real-time market data, portfolio management data, and risk analytics.
  5. Exchanges, trading systems and data providers will explore proof-of-concepts around core systems on the cloud. Improvements to AI/ML tooling or infrastructure will ramp up as firms seek more rapid responses to risk initiatives.

To learn more about these findings, download our two full reports, The Future of market data: Distribution and consumption through cloud and AI and Exchanges and data providers: Prioritizing the cloud and AI for internal insights or our short infographic.


Research methodology

The survey was conducted online by Coalition Greenwich on behalf of Google Cloud from March 2021 to April 2021 among 102 executives in North America (n=82), EMEA (n=17) and other (n=3) who are employed full-time and who are participants or influencers in decisions around cloud and/or senior management with a role at a company which is an institutional asset manager, hedge fund, alternative investment manager, exchange and/or trading system, information provider, information aggregator, or other asset manager/asset owner. The survey included wide perspectives from a range of firm size and asset class focus, including equity, fixed income, FX, commodities, multi-asset, and other asset classes.


Foot Notes

1.  We defined market data as direct feeds, consolidated feeds, terminal and desktop products, security and reference data, pricing data, historical data, alternative data, and index data.

Blog

Google Cloud Announces Improvements in Private Catalog to Drive Terraform Deployments

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Google Cloud Private Catalog helps cloud admins take control and enable discoverability of internal enterprise solutions. For better view of the Terraform deployments browse the new features of Private Catalog!

As an enterprise admin, when you choose to use Google Cloud Private Catalog to enable curated, self-serve Google Cloud infrastructure provisioning, you need the ability to manage your organization’s deployments. Today, we’re pleased to announce support for several improvements to Terraform driven deployments through Private Catalog. 

With this new release, you can update Terraform configurations and keep your end users informed about updates. At the same time, Private Catalog users have the ability to view new updates, note version highlights and then update the deployment. This gives you greater control over managing deployments for solutions provisioned through Private Catalog and ensuring compliance with organizational policies and standards.

Let’s take a closer look at the features you’ll find in this release. 

Deployment change management

Terraform solutions use Cloud Storage’s Object Versioning to manage updates to configuration files. With this release, you may update configuration files using multiple approaches.

  • Update the solution’s Cloud Storage object with a new configuration version
  • Use a different Cloud Storage object that contains a new configuration file

Once you view and apply the changes to the solution in a Private Catalog, end users are immediately able to consume the new version of the deployment configuration.

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Pending updates

Additionally, prior to applying any changes, you can evaluate the contents of an update by comparing versions to download and compare the current and latest versions of the configuration and use new version highlights to add a description about the updates.

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Compare versions
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Update configuration

Ease of consumption

Once Private Catalog detects a change to the deployment configuration, it automatically informs catalog users about the change. On the Solutions page, end users have the ability to:

  • Get informed about solutions that have updates
  • View version highlights published by the admin
  • Apply the new version 

Additionally, with this release, Catalog users can retry existing deployments by modifying deployment parameters.

Reporting improvements

The deployment reporting dashboards for Private Catalog-based deployments now show additional information about the version of a solution deployed. This enables deeper insights into the overall deployment status across all Private Catalog solution assets.

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Admin deployment list
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End user deployment list

Get started today

These new features are available to all Private Catalog customers. To learn how to use these features, refer to our documentation:

Case Study

PaGaLGuY Turns to Google Cloud Platform to Power Leading India Education Network

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With Google Cloud Platform, PaGaLGuY has provided a more personalised, engaging experience for users to drive growth and increase revenue.

Founded in 2006, PaGaLGuY started as a forum that enabled students, typically aged between 20 and 30 to discuss and seek advice on academic issues. By 2011, PaGaLGuY had increased its traffic to about 250,000 page views per month. The business is now one of India’s largest education networks and provides an app that users can download to their Android and iOS devices.

Over the past six years, PaGaLGuY has extended its service to include video advice from experts on education topics and grown the number of views of its pages to 1.5 million per day. As Head of Technology for the business, Sandeep Kalidindi has played a key role in ensuring PaGaLGuY is as engaging as possible to users. “Because the product is advertising based, the greater the user engagement, the greater the advertising revenue,” Kalidindi explains.

Google Cloud Platform Results

  • Supported growth to 1.5 million page views per day and demand spikes that see requests increase from about 90 per second to about 1,200 per second
  • Reduced API latency from about 1 second to about 40 milliseconds
  • Reduced system administration time from three to four days per week to 30 minutes every two weeks

In 2015, PaGaLGuY’s senior management team decided to deliver an even more relevant experience for users of the education network. “The core thing we had to do was personalise the experience for each and every student that visited PaGaLGuY,” Kalidindi says. “So we had to capture each student’s data to customise what they see when they open the site.”

The business also found traffic to the network was straining its infrastructure. During demand peaks, created by exams involving as many as 5 million students, PaGaLGuY would be inaccessible for periods of 30 minutes to one hour. Furthermore, average API latency had climbed to an unacceptable 1 second, compromising performance.

PaGaLGuY needed to access extensive compute resources to undertake its planned change. Had the business relied on a physical technology architecture to undertake the transformation, it would have had to purchase capacity equivalent to 16 new servers. “There was no way with a small team we could grow to that extent in a short time,” Kalidindi says. “This was the right moment for us to explore cloud services.”

The business established two primary requirements the selected cloud service needed to meet. First, PaGaLGuY had to be able to scale the platform with costs rising only in proportion to the increase in resources consumed. Accordingly, the business would have to minimise the number of employees required to manage the cloud environment. Second, the platform had to give PaGaLGuY easy access to student data and the ability to undertake prompt, granular analysis.

PaGaLGuY reviewed available public cloud services and determined that Google Cloud Platform (GCP) was the best fit for its business. “Google Cloud Platform was considerably more mature than the alternatives, with a high degree of automation and a suite of managed services,” Kalidindi says. PaGaLGuY management then discussed with Google how to optimise cost, performance and availability of its personalised education network on GCP.

With assistance from Google and business transformation specialists Searce, PaGaLGuY was able to deliver the platform into production on GCP in 10 months. “Searce was very proactive in ensuring the environment met our needs and allowing us to gain priority access to Google services in development,” Kalidindi says. “Their team was integral to the success of the migration.”

PaGaLGuY has been running in production in GCP for two years. The education network’s GCP architecture comprises a scalable back-end built on Google App Engine; a managed environment for its containerised applications in Google Kubernetes Engine; messaging-oriented middleware through Google Cloud Pub/Sub; a relational database in Google Cloud SQL; a managed data analytics warehouse running in Google BigQuery; stream and batch data processing through Google Cloud Dataflow; and object storage in Google Cloud Storage.

PaGaLGuY has leveraged GCP services to break down its platform application from a monolithic build to a series of microservices running in Google App Engine that enable independent deployment cycles, minimise test and quality assurance overheads and provide clearer monitoring and logging.

Running on GCP has enabled PaGaLGuY to add new personalisation features and grow fourfold without having to add any new engineers or administrators to accommodate the increased traffic. The business has also used the platform to seamlessly collect and aggregate students’ data for analysis, reporting and delivering a more targeted user experience. Furthermore, PaGaLGuY has been able to provide its management team with direct access to Google BigQuery to scrutinise data rather than require them to wait at least a day to view reports created by the product or technology teams.

Support demand peaks of 1,200 requests per second

“Thanks to Google Cloud Platform, we can easily support demand peaks that see requests per second rise from an average 90 per second to about 1,200 per second for as long as 45 minutes,” Kalidindi says. Due to GCP’s scalability, PaGaLGuY can ensure its education network remains available and performance remains consistent during those periods.

Latency cut to 40 milliseconds

The business has also reduced average API latency from 1 second to about 40 milliseconds. Furthermore, using GCP has enabled PaGaLGuY to automate most of its processes and reduce system administration requirements from three to four days a week across its team members to about half an hour per week.

The performance of GCP has transformed PaGaLGuY’s culture and processes. “Once our team was exposed to Google Cloud Platform and understood the superiority of the platform, our mindset changed from ‘let us do everything on our own’ to ‘let us do what we do best’ and delegate the remainder,” Kalidindi says. The quality of the service provided by GCP means PaGaLGuY effectively considers the cloud provider as part of its team. “We are always eager to see what new services are being launched and are extremely excited about what Google Cloud Platform can provide as part of its roadmap.” he concludes.

Whitepaper

Strengthening Operational Resilience Migrating to Google Cloud

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Operational resilience continues to be a key focus for financial services firms. Regulators from around the world are refocusing supervisory approaches on operational resilience to support the soundness of financial firms and the stability of the financial ecosystem. Our new white paper discusses the continuing importance of operational resilience to the financial services sector, and the role that a well-executed migration to Google Cloud can play in strengthening it.

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Google Cloud and Ericsson to Deliver 5G and Edge Cloud Solutions

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Google Cloud and Ericsson announced partnership to transform user experiences across industry applications with 5G and edge solutions for CSPs and enterprises. This combo will serve as single pane of glass to manage and look beyond connectivity!

Editor’s note: 5G is much more than a network—it’s a platform for innovation with the ability to provide immediate global scale and enable use cases that we haven’t even dreamed of yet. But to achieve this, industry players must come together to drive this growing ecosystem. Today, Erik Ekudden, CTO of Ericsson, and Bikash Koley, VP of Global Networking at Google Cloud, share their insights into the potential of edge and 5G.

Experts consider 2021 to be the year that serves as the inflection point between network readiness and 5G availability. However, communications service providers (CSPs) are still faced with the task of modernizing their networks, systems, and infrastructure to maximize the potential of 5G for themselves and for the enterprise customers they serve. As you weigh whether to tackle this challenge, let’s first examine what’s different about 5G and how CSPs can best leverage 5G and the edge together as an even stronger platform for innovation than just 5G alone.

With 5G, applications and mobile networks are no longer isolated

Let’s first address what 5G brings to the table. Faster speeds and lower latency are expected of course, and throughout the evolution from 2G to 3G to 4G, there’s been a step function in performance improvements with each of these. However, with every generation, applications and networks have been like ships passing in the night. Networks have been unaware of what the applications have been doing and applications have been guessing what the network was capable of. 

What’s different this time around is that there is some real innovation happening with the development and rollout of 5G itself. The network is on a path to become more accessible via APIs so that applications can call on and consume what they need from the networks in a more programmable way. This sets us up for more open architectures and ecosystems.

5G leverages a more open architecture 

One key difference with 5G as compared to prior generations is that it’s the most open and flexible network architecture the CSP industry has seen. This is thanks to its service-based approach and the decoupling of hardware and software components. CSPs are now running core network elements in the public cloud, private cloud, hybrid cloud, and even multi-cloud, which was unthinkable even five years ago.

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The flexibility of this more open architecture allows us to push the cloud to the edge while still being able to manage it from a single pane of glass. This is a huge leap forward from traditional networks, which have been domain-specific, managed in silos, and with slow service creation and delivery. Now, hyperscale cloud vendors and network equipment providers are offering solutions that help CSPs break down these silos to enable more flexible, automated networks with improved orchestration, visibility, and control across multi-vendor, multi-cloud and hyperscale cloud-provider environments. In addition, the separation of hardware and software provides a much more flexible and cost-effective way to upgrade from one network generation to the next.

To provide solutions that are relevant to enterprises, CSPs must offer capabilities beyond connectivity. Enterprise service orchestration, including exposure of network assets and network slicing, are foundational capabilities to provide value to the application ecosystem and be in control of the network and the delivered services.

Combining 5G and edge to help industries reimagine user experiences

This convergence of compute, storage and networking at the edge coming together for the first time will enable CSPs and enterprises to offer their customers completely reimagined user experiences. Consider, for example, how the automotive industry might enhance how customers shop for a car. As part of Fiat Chrysler Automobiles’ Virtual Showroom at the recent CES 2021 event, consumers were able to experience the innovative new 2021 Jeep Wrangler 4xe by scanning a QR code with their phones, and then see an Augmented Reality (AR) model of the Wrangler right in front of them—virtually placed on their own driveway or in any open space.

By rendering the model in Google Cloud, then streaming it to mobile devices, visitors could also see what the car looked like from any angle, in different colors, and even step inside to see the interior in incredible detail. That is the true digitization of an industry segment and highlights the device-to-network-to-edge-to-cloud application relationship and how it can impact the user experience.

A programmable network unlocks more application use cases

The programmability of the 5G network will truly enable application developers to utilize all the benefits of the underlying network. Programmability supports ease of use and enables CSPs, integrated software vendors (ISVs) and the ecosystem to have the right network-level APIs exposed so that applications can be optimized based on the network behavior and vice versa. Imagine, for instance, automatically pushing applications from a cloud region to the edge based on network latency and performance metrics.

Finally, 5G’s programmability is also about having the right tools available for developers to build and integrate applications on the network with zero-touch onboarding and validation. With this, we’ve come to the point where the network is now a “platform” for application innovation. 

5G and edge will be all about the ecosystem

One thing is for certain: the shift to 5G will place tremendous focus on the ecosystem, and it needs to be an ecosystem that includes CSPs, public cloud providers, application developers and technology providers, all coming together to optimize the user experiences across industry applications. For instance, Google Cloud and Ericsson recently announced our partnership to deliver 5G and edge cloud solutions for CSPs and enterprise.  In addition, Google Cloud is also teaming up with popular ISVs to deliver more than 200 edge applications from 30-plus partners, all running on our cloud.  

With collaboration across ISVs, cloud providers and network equipment providers, we are enabling the rapid delivery and deployment of new vertical services and applications, leveraging capabilities like Anthos, artificial intelligence (AI), and machine learning (ML), as well as multi-vendor, multi-cloud and hyperscale cloud provider service orchestration and global edge networks such as those provided by Google and telecom service providers.

As members of the technology ecosystem, we talk about compute, storage and networking, but when it comes down to it, it’s about optimally placing these resources—whether in the cloud, at the provider core, at the edge or anywhere in between—to maximize the end-user experience. The openness and programmability of 5G lends itself to collaboration like never before. We predict that in 2022 and beyond, it will be all about the ecosystem coming together to leverage 5G and the edge to build innovations that we can’t yet imagine.

To learn more, watch the full Ericsson 5G Things CTO Focus fireside chat, where we discuss these topics and more.

Blog

Google Cloud’s 101 Illustrated References for Cloud Engineers and Architects

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Here's an interesting way to make Google Cloud concepts fun and easy-to-understand! Lead Developer Advocate at Google has curated visual explanation in a reference guide for Cloud Architects and Engineers. Read to order your copy of the book!

Many people are visual learners; I am definitely one of them, and judging by the tremendous response you all showed to Google Cloud Sketchnotes on LinkedIn and Twitter, you are too.

-Priyanka Vergadia, Lead Developer Advocate, Google

“A picture is worth a thousand words”

Shortly after I started creating and sharing visual explanations of Google Cloud concepts in late 2020, I began receiving overwhelmingly positive feedback from fellow cloud architects and enthusiasts. That feedback led me to think about pulling these sketches together into a reference guide — a one-stop shop for cloud learning fun. So here it is!

🥁 Introducing “Visualizing Google Cloud: 101 Illustrated References for Cloud Engineers and Architects

🤔 What is this book about?


This book is my way of making Google Cloud technical concepts fun and interesting via visual storytelling. It covers Google Cloud essentials from end to end, with a visual explanation of each concept, how it works, and how you can apply it with other concepts to meet the needs of your real-world use case. After reading thousands of pages of Google Cloud documentation and experimenting with virtually every Google Cloud product, I distilled that experience down to this book of accessible, bite-sized visuals.

The sketches are spread across five broad categories:

  • Infrastructure, storage, and databases: Run and scale applications seamlessly
  • Data analytics and machine learning: Derive actionable insights from data
  • Networking: Connect, scale, secure, modernize, and optimize your infrastructure
  • Application development and modernization: Build apps using containers and microservices
  • Security: Protect data, users, and applications in cloud

🙋‍♀️ Who is this book for?


It is for all cloud enthusiasts. It is for anyone who is planning a cloud migration or new cloud deployment, preparing for cloud certification, or looking to make the most of Google Cloud. If you are a cloud solutions architect, an IT decision-maker, or a data and machine learning engineer, you will find this book a good starting point. In short, this book is for YOU!

When you get the book you’ll not only help yourself, you’ll also help provide meals for schoolchildren who need them. All the books’ proceeds go directly to the awesome folks at Wiley and a charity that fights malnutrition and supports the right to education.

🪜 Next Steps


I hope this book helps you on your Google Cloud journey by making it both easier and more fun. Are you ready to dive in? Order here, learn more about how the idea of the book came about here and please share your thoughts with me on Twitter or LinkedIn.

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Learning Should be Your Resolution for 2022: Register for Google Cloud Skills Boost

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Majority of Consumer Goods Shoppers in the U.S. will Not Compromise on Brand Principles: Google Commissioned Research

Editor’s note: This article first appeared in Consumer Goods Technology Magazine Shifting work habits, more online shopping options, rising inflation, and stretched supply chains are just a few factors making it harder to discern what’s top-of-mind for shoppers today. But we’re starting to get a clearer picture of what consumers

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