After a seamless migration to Google Cloud Platform with CloudCover and Google Cloud Professional Services, Hike has reduced its costs by 20% and processed analytics queries 20 times faster than with its previous cloud provider. The business is also using AI and machine learning to enhance the experience provided by a new sticker-based messaging app, Hike Sticker Chat.

India is a market of opportunity for businesses that provide messaging apps to consumers. With more than 1.3 billion people, the country is the second most populous in the world. However, global messaging app providers face a robust market challenge from Hike, a home-grown internet and technology startup. Launched in 2012, Hike provides innovative products such as Hike Messenger and more recently the AI- and machine-learning-enabled Hike Sticker Chat, a service that enables young people in the country to express themselves through digital stickers.

The business says it understands the people of India and communication like no one else, while its mission is to reduce individuals’ dependency on the keyboard. To do this, Hike is building one of the largest repositories of AI and machine-learning-enabled stickers for Hike Sticker Chat. This messaging platform is, according to Hike, the only product of its type that enables conversations through stickers covering more than 40 languages and local dialects.

Google Cloud Results

• Processes analytics queries 20X faster than previously
• Doubles compute throughput
• Uses Google Cloud Machine Learning Engine managed, distributed capabilities to train complex models on TensorFlow that provide delightful local sticker recommendations through Hike Sticker Chat

Founded by Kavin Bharti Mittal, the Delhi-based venture is backed by SoftBank, Tencent, Tiger Global, Foxconn, and Bharti. To date, Hike has raised $261 million in funding. In August 2016, Hike raised its Series D round of funding, led by Tencent and Foxconn, at a valuation of $1.4 billion. The business is one of the fastest Indian startups to achieve Unicorn status, doing so in less than four years.

Hike started operations on a multinational cloud service. However, as user numbers and usage grew, the business began exploring options to improve performance and stability, reduce costs, and cut administration loads. In particular, Hike wanted to reduce latency between cloud data centers.

Focus on product development

“We aimed to move away from a technology stack with single points of failure to a horizontally scaled, highly reliable, distributed systems and managed services environment that enabled us to focus on product development rather than operations,” says Aditya Gupta, Director, Engineering, Hike.

Hike then began exploring the opportunities presented by Google Cloud Platform. The business held a number of executive-level meetings with Google to understand the capabilities, roadmap, and track record of the cloud service. It then decided to proceed with a proof of concept with Google Cloud Premier Partner CloudCover.

The proof of concept revealed that when Cloud Load Balancing was operating, latency between the Google Cloud data center in Taiwan and Delhi, India, was less than the latency between the incumbent cloud provider’s data center and Delhi. Further, compute throughput was up to two times greater on Compute Engine than on the equivalent service, while Hike could complete more then 1 million connections on Compute Engine – up from 500,000 connections on the incumbent service.

Migrate to GCP

The success of the exercise prompted Hike to migrate its messaging app to Google Cloud Platform. “We chose Google Cloud Platform because of its very broad set of services and features,” explains Gupta. “In addition, Google’s innovation mindset and the richness of the partnership would allow us to be onboarded quickly to machine learning services such as Cloud Machine Learning Engine.”

The business called on Google Cloud Professional Services (Technical Account Management) to help ensure a seamless lift-and-shift migration over two months. Google Cloud Professional Services initially undertook a technical infrastructure kickoff to establish a foundation for architecture requirements such as identity and access management and security.

Google Cloud Professional Services team delivers smooth migration

Google Cloud Professional Services worked closely with Hike to map out and deliver the Google Cloud Platform architecture that would deliver the greatest value to the business. The Professional Services team also worked with Hike to resolve product and support queries quickly; provided project background for product and support teams; and organized project meetings and early adopter program access.

In addition, Professional Services team members worked on site at least once a week, coordinated external support during critical migration periods, and coordinated teams in five countries for a single, 17-hour migration marathon. Over 60 days, the business migrated 7,000 processor cores, running virtual machine instances used for messaging infrastructure and analytics, to Google Cloud Platform.

Throughout the exercise, Google Cloud Professional Services worked with CloudCover to educate the customers’ technology teams to achieve proficiency with Google Cloud Platform. The teams soon built up skills and knowledge of best practices and began applying them to the Google Cloud Platform environment.

The Hike Google Cloud Platform architecture comprises virtual machine instances running in Compute Engine; Cloud Storage for unified object storage; networking; a BigQuery analytics data warehouse; Cloud Dataflow to transform and enrich data; Cloud Load Balancing to distribute workloads to maximize efficiency; and Cloud Dataproc to run Hadoop clusters.

Hike is also stepping up its AI & machine learning capabilities. It uses Google Cloud Machine Learning Engine managed, distributed computing capabilities to train complex models on TensorFlow. This powers key use cases such as delightful local sticker recommendations on Hike Sticker Chat. Hike is also investing heavily on AI and machine learning research.

Hike has achieved a range of benefits from its Google Cloud Platform deployment. As well as reduced latency, improved compute throughput, and increased connection handling, Google Cloud Platform managed services have enabled the business to reduce the time and effort required to administer core infrastructure, with the saved resources allocated to improving its messaging product.

“Managed services are beginning to reduce our operational overheads,” says Gupta. “For example, managed instance groups and Cloud Load Balancing are reducing our instance count and costs, thereby reducing involvement from DevOps and developer teams.”

Google Cloud Platform 20% cheaper

Gupta and his team have calculated that running for three years on Google Cloud Platform will cost, including the cost of migration, 20 percent less than on its previous platform. BigQuery is processing queries 20 times faster than a similar service offered by the previous provider, while storing 125TB of data and streaming 1.5TB of data daily. Furthermore, Hike’s analytics pipeline costs 80 percent less than in its previous environment.

“Google Cloud Platform has played an important role in enabling us to continue to innovate and realize our mission of reducing dependency on the keyboard,” says Gupta.

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.

In times of significant disruption, organizations are faced with three choices: Retrench within legacy solutions, pause and do nothing while waiting for more data or different circumstances, or press ahead, potentially even accelerating to realize the desired outcome. In such an environment, it is critical to ensure you’re delivering the greatest possible impact to the business. 

In Google Cloud’s Office of the CTO, or OCTO, we have the privilege of co-innovating with customers to explore what’s possible and how we can re-imagine and solve their most strategic challenges. These collaborative innovation engagements are often core to critical transformational projects, which often include the rehosting, evolution, and at times re-architecture of existing business solutions. 

We are happy to offer this brand new white paper, where we have distilled the conversations we’ve had with CIOs, CTOs, and their technical staff into several frameworks that can help cut through the hype and the technical complexity, to help devise the strategy that empowers both the business and IT. We called one such framework “up or out.” (And we don’t mean some consulting firm’s hard-nosed career philosophy.) 

One model that we found can help enterprises chart their cloud adoption journey delineates cloud migration along two axes—up and out, and we’ll cover this in much greater detail in the white paper itself.

As you can see, there isn’t a single path to the cloud—not for individual enterprises and not even for individual applications. The up or out framework can help an IT organization and its leadership characterize how they can best benefit from migrating their services or workloads. The framework acts as a general pattern that highlights the continuum of approaches to explore, and you can learn all about it by downloading this detailed white paper.

Or, if you’re really ready to jump start your migration today, you can take advantage of our current offer by signing up for a free discovery and assessment.