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 delivery. Today, 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.

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.

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.

4. AI/ML, powered by cloud, is moving out of the pilot phase and into mainstream use. Today, 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.

5. Exchanges, trading systems, and data providers are prioritizing public cloud for internal insights. 71% 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.

“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.

The Opportunity for Streamed AR/VR Content 

What if you could get a high quality AR/VR experience without a dedicated physical computer—or even without a physical tether?  

In the past, interacting with VR required a dedicated, high-end workstation and, depending on the headset, wall-mounted sensors and a dedicated physical space. Complex tasks in VR can push the limits of sensor reach, cable-length, and spatial boundaries, entangling the artist and restricting their movement. This solution was not scalable beyond a handful of advanced use cases.

Recently, tetherless VR headsets from manufacturers such as HTC and Oculus have emerged that free the user from these odious restrictions, enabling a new freedom to experience VR and AR from just about anywhere. The enhanced portability and reduced cost has led to substantially increased adoption among consumers and opened up many new exploratory use cases in enterprise.

However, while these headsets are more accessible and portable, a tradeoff in compute power was required in order to achieve these goals. The limited on-device compute power of this new generation of Head Mounted Displays (HMDs) is acceptable for many consumer applications such as casual gaming. However, advanced enterprise workloads with heavy graphics, compute, or memory requirements can be difficult or even impossible to run on these lightweight devices.

By combining NVIDIA CloudXR with their powerful GPUs running NVIDIA RTX Virtual Workstations (vWS) in Google Cloud data centers, you can experience high-fidelity VR and AR applications from just about anywhere with a good internet connection. The heavy computations are performed in the cloud on a GPU-attached VM and the content streams to any CloudXR compatible headset. 

The combination of Google Cloud’s private fiber optic network — the same network we built for global delivery of YouTube content — and CloudXR’s QoS technologies provides the user with the highest possible quality of service. In fact, the streaming experience is comparable to that of a headset tethered to a powerful physical workstation, but without the friction of hardware and cables. 

This combination of power and portability sets the stage to unlock the potential of high-quality gaming and enterprise AR/VR experiences anywhere on Earth.

Case Study: Creating a Masterpiece

Digital character creation is a core skill for many 3D artists today. One of the preferred methods of 3D character creation is digital sculpting, which lets artists create both hard-surface and organic shapes with high levels of accuracy and control.

Sculpting is one of the many tasks in the character designer’s skillset. Artists must also master the texturing, rigging, and posing of characters as part of the digital character creation pipeline. 

Mastering all these tasks can be challenging, and often, the technology gets in the way; working in multiple applications requires switching contexts and workflows, breaking the artist’s creative flow. The traditional user experience can also be unintuitive, forcing the creator to translate what they want to do with their hands and head into mouse movement and keyboard presses.

Masterpiece Studio Pro revolutionizes this character creation workflow by giving artists the first fully immersive 3D creation pipeline. Artists work in VR, giving them a far more intuitive and seamless way to work which combines the best of the digital and physical worlds.

In Masterpiece Studio Pro, the artist can work on the character or object at any scale, using familiar tools and hand gestures to sculpt a model, much as they would a real clay figure. Performing other tasks such as skeleton creation is simple, allowing the artist to work directly with the limbs of a character to place and adjust the joints.

Bringing It All Together

NVIDIA CloudXR streaming from the cloud provides tremendous opportunities for new creative use cases within gaming and across the enterprise. This solution joins Virtual Studio for Gaming as the latest in our series to help developers build better games.

The Masterpiece Studio use case is a powerful demonstration of new modalities for content creation and collaboration. To try CloudXR with NVIDIA RTX vWS on Google Cloud for yourself, see this tutorial. Masterpiece Studio Pro also offers extensive learning materials and a free trial.

About Grofers

Grofers is an India-based local mobile e-commerce platform that delivers groceries, fruits and vegetables, cosmetics and electronics. Customers use Grofers’ mobile app to shop for products from local stores in 17 cities in India.

Industries: Services

Location: India

India-based Grofers is a hyperlocal mobile platform that delivers groceries, fruits and vegetables, cosmetics and electronics. Customers use Grofers’ mobile app to shop for products from local stores in 17 cities in India.

In 2015, the number of deliveries Grofers fulfilled was growing at the rate of 10 times a month, and its delivery system struggled under the stress. When traffic spiked on weekends, its database frequently crashed. Fulfilling and delivering orders depended on manual processes such as telephone calls. Grofers needed a solution that would allow it to quickly scale and improve its delivery process.

Building an entire backend in two weeks

When Grofers launched in 2013, the logistics system was entirely manual. Staff at the headquarters called delivery drivers with order details and delivery addresses. Drivers then decided what order to pick up goods from local merchants. With a small number of customers and orders, that wasn’t a problem. But the manual system couldn’t handle growth. Grofers recognized it had to automate the system.

To do that, it turned to Google Cloud Platform. Grofers built a new backend for its delivery system using Google App Engine. When an order arrives, the new system looks at the status of all drivers — including their current location, the order he’s completing, and the pickup and delivery locations on the route. Based on that information, the system calculates the optimal driver for each order and sends the driver the order via a mobile app.

The system also takes advantage of Google Cloud Endpoints, which generates libraries for Javascript, iOS and Android. Grofers used Google Cloud Endpoints to create mobile apps to communicate with its delivery staff.

Scaling fast, dramatically improving delivery metrics

With the new backend and mobile apps, Grofers can scale quickly to keep up with its rapid growth. Grofers now delivers 70,000 orders per day, up from 10,000 before the GCP deployment, and has had 100 percent uptime. Each driver handles an average of 15 orders per day, compared to only five previously, letting Grofers handle more work with less staff. All this has been accomplished at very low cost: Prakash says that GCP costs account for only two percent of the company’s infrastructure spending. Without GCP, Prakash says the backend would be far more expensive and account for up to 50 percent of the company’s infrastructure expenses.

Many people start a small business that aligns with their passions, but soon discover the day-to-day running of a business is very different than anticipated. Dealing with accounting, finance, and other daily activities can quickly overwhelm even the most promising of new businesses.

Recognizing the unique challenges facing small businesses, we founded Beany. With our personalized accounting platform, small business owners can relax knowing that we will look after all their compliance and advisory needs. Business owners who use Beany also benefit because they end up freeing more time to focus on what they enjoy and do best—likely the main reasons they started their business in the first place. We prepare financial statements, minimize tax and keep an eye that our clients are paying the right amount at the right time. We also advise on business purchase and sale, valuations and forecasting for banks. In fact, we do everything that a business owner needs from their accountant, including a help desk filled with domain experts to provide free & unlimited advice and support. 

As we expand our team, we’ll continue to introduce new solutions, services, and integrations that make it even easier for small businesses to prioritize business planning, balance budgets, and keep up with ever-changing tax laws. We also plan to launch Beany in new markets and extend our global footprint beyond New Zealand, Australia, and the UK.    

Migrating and scaling Beany

Beany was initially developed and hosted on a virtual private server (VPS) with limited capabilities. As our subscriber base grew, we realized we needed a more scalable, secure solution to eliminate downtime and deliver a reliable customer experience. We also understood it would be challenging for our small engineering team to cost-effectively test and deploy new features without a more agile development environment. 

With that in mind, we chose the secure-by-design infrastructure of Google Cloud to power Beany and help us scale our innovative accounting platform. We now use Compute Engine to cost-effectively create virtual machines (VMs) that automatically select optimal amounts of processing and memory. 

In addition, we encrypt, store, and archive everything on highly secure Cloud Storage, leveraging a combination of solid-state drives (SSDs) and hard disk drives (HDDs) for hot, nearline, and coldline data. With Cloud Storage, we can replicate data between regions in under 15 minutes to enable rapid recovery and business continuity. This has been really useful moving images to data centers on the other side of the planet quickly as we primarily operate out of Sydney and London. 

We also connect, create, and collaborate on Google Workspace using Google Gmail, Docs, Calendar, and Meet. Beany smoothly integrates with Google Sheets to provide live reporting from our application direct to our sales, marketing and support staff. It also makes sharing account data with our accounting clients easy and secure.

Analyzing financial data with Google Cloud AI and machine learning

Joining the Google for Startups Cloud Program gave us immediate access to Google Cloud credits which we use to cost-effectively trial and deploy additional Google Cloud solutions. We continue to evaluate Cloud Code which will help our developers more efficiently create, deploy, and integrate applications directly on Google Cloud. We’re also exploring how Google Cloud AI and machine learning products such as Vertex AI and AutoML can further revolutionize accounting with advanced financial analyses and end-to-end automation of business processes.

We can’t wait to see what we accomplish next as we grow our team and introduce new services and solutions that enable small businesses to streamline operations, lower costs, and increase profits. It’s exciting to help small business owners manage accounting and financial planning so they can spend more time doing what they love and realize their business vision.

Beany team members

If you want to learn more about how Google Cloud can help your startup, visit our page here to get more information about our program, and sign up for our communications to get a look at our community activities, digital events, special offers, and more.