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.

About Vimeo

Vimeo gives video creators the tools to host, share, and sell videos of the highest quality possible. It reaches viewers in over 150 countries who can watch content anytime, on nearly every Internet-connected device.

Industries: Media & Entertainment

Location: United States

About Fastly

Fastly helps the world’s most popular digital businesses keep pace with their customer expectations by delivering fast, secure, and scalable online experiences. Businesses trust the Fastly edge cloud platform to accelerate the pace of technical innovation, mitigate evolving threats, and scale on demand.

Industries:

Location:

Vimeo is a video-sharing platform that’s home to imaginative video creators and hundreds of millions of viewers. Sixty million people create, host, and sell high-quality videos on Vimeo, including more than 800,000 who subscribe to the service’s premium tools. Over 240 million people in more than 150 countries watch videos monthly.

Vimeo was using its own servers to allow users to upload videos to its service, a cloud storage platform for storing videos, and as an alternative solution for streaming. It was looking for a solution that would do away with its own servers for uploading. Vimeo built a new adaptive video-delivery service on Google Cloud Platform and the Fastly edge cloud that can scale on demand to meet Vimeo’s growing needs for video streaming.

“Our business is dependent on delivering high-quality video; that’s our competitive edge,” says Naren Venkataraman, Senior Director of Engineering at Vimeo. “Thanks to Fastly and Google Cloud Platform, we’re delivering more high-quality videos than ever at less cost, leading to our continuing success and growth.”

Tuning video delivery

Building a great video experience begins with a fast, reliable upload service. Vimeo replaced its servers for accepting video uploads with Google Cloud Storage, fronted by the Fastly edge cloud to help ensure regional routing and low-latency, high-throughput connections for Vimeo’s publishers. Multi-regional Google Cloud Storage offers fast, resumable upload capability that helps make for better user experience.

The video delivery service transcodes videos and streams them to users—videos are customized depending on network traffic and the devices to which the videos are delivered. The goal is to deliver the highest-quality, smooth playback experience across all platforms over varying network conditions and device capabilities.

Google Compute Engine packages the videos, which are stored on Google Cloud Storage. Google Compute Engine can automatically scale to allow Vimeo to deliver videos on the fly, even when demand spikes and many users stream videos simultaneously across a very diverse library. The low latency of Google Cloud Storage helps with fast startup times, while providing scalable storage to host millions of videos from Vimeo’s loyal community of content creators.

“Fastly and Google Cloud Platform enabled us to build a low-latency, highly scalable, on-the-fly adaptive video streaming packager in a short period of time with a small team,” says Naren.

High-quality video means more users

With Fastly and Google Cloud Platform, Vimeo is delivering more and higher-quality videos to its users because of the platform’s low latency, high bandwidth, and ability to scale. Because of the system’s reliability, fewer users stop watching videos because of delays and glitches. Vimeo engineers do not have to spend their time managing infrastructure and now focus on improving the video delivery service, leading to improved customer satisfaction. Costs are reduced because Vimeo does not have to manage the infrastructure in-house.

“We’ve chosen Google for Fastly’s Cloud Accelerator because at Google innovation happens faster, and Google Cloud Platform is driving cloud computing and cloud storage in the right direction,” says Lee Chen, Head of Strategic Partnerships at Fastly.

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.

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 say they value most right now. New Harris Poll research commissioned by Google Cloud reveals how U.S. shoppers are thinking about consumer goods brands in new ways—from apparel, electronics, and beauty products, to food and beverage.

While price unsurprisingly continues to be a major consideration in purchases, the average shopper is increasingly paying close attention to the values of consumer goods brands and how eco-friendly their products and practices are.

Shoppers want to buy from brands aligned with their values

COVID-19 drove people to reflect on their priorities, elevating concepts like community service, equity, and sustainability. A decade ago, most consumer goods companies would not have made these front-and-center, operational priorities. But today’s consumer not only wants savings and convenience, they also want that good feeling that comes from spending their money with a company that aligns with their values.

Our new research reveals that 82% of shoppers prefer a consumer brand’s values to align with their own, and they’ll vote with their wallet if they don’t feel a match. Three-quarters of shoppers reported parting ways with a brand over a conflict in values.

Even with their favorite consumer goods products, a majority of shoppers will not compromise on principles. If there’s a value mismatch, 39% of shoppers said they’d permanently boycott their favorite brand, and 24% would break ties at least temporarily. Most won’t be quiet about their concerns either: 28% of consumers that found their values at odds with a brand said they have shared their concerns with friends and family, and another 15% have shared their qualms on social media.

Consumer goods companies need to prioritize sustainability

A majority of today’s consumers (52%) are especially interested in supporting sustainable brands. They want to know how companies are managing their resources, specifically whether they are sourcing responsibly. These shoppers want to see meaningful, measurable efforts from CPG firms to save energy and reduce waste, like how Nuuly, URBN’s digital rental and resale business, has woven sustainability into its business operations, from its distribution centers to reusable packaging.

In fact, 66% of shoppers are now seeking out eco-friendly brands, with 55% saying they would pay more for more sustainable products. But these same shoppers are skeptical too: 72% think that companies and brands overstate their sustainability efforts. And they’re right to question brands’ practical application of their values. According to another Harris Poll survey recently commissioned by Google Cloud, 58% of executives polled across 16 countries admit that their organization has overstated its sustainability efforts.

Product availability is table stakes

A final point from the research: The global supply chain has stretched past its limits, and 60% of consumers are voicing some level of concern about it. At the end of the day, if a preferred brand isn’t actually on the shelves of a real or digital store, it doesn’t matter what the brand’s values or sustainability efforts are. A staggering 98% said they’d either buy from a different brand or search other stores or websites.

What’s a brand to do?

After more than 25 years working in the consumer goods industry in roles ranging from marketing and product development to business strategy and technology, at companies like Johnson & Johnson, Kimberly Clark, Carter’s, and now Google Cloud, I’ve seen successful brands do four things well when it comes to their values:

1. Don’t be generic.
   Your brand’s values need to be authentic, and they need to have teeth. But being too bold could run the risk of alienating some consumer segments. This is where technology can help. Personalizing your messages and outreach to specific shopper profiles is one way to ensure that your core values reach the right customers at the right time.
2. Make your values clear and consistent.
   When focusing on which values to highlight with your consumers and the world, make sure they make sense for your brand and that you’ll stick to them over time. For example, it’s painfully obvious when a brand is being opportunistic and inserting itself into conversations around values like sustainability or social justice, when it doesn’t have a history of voicing those values. The key to clear and consistent messaging of values is balancing authenticity with relatability and the appropriate amount of promotion.
3. Develop sustainability practices and communicate their impact to everyday people.
   How everyday people perceive a consumer goods brand’s sustainability initiatives is different from how an investor or general business audience does. Shoppers don’t read business sustainability plans or impact reports. To increase awareness of your brand’s sustainability efforts, consumers need to identify and interact with your brand and products directly. Some of my favorite examples are how I love that Google Maps gives me the choice of eco-friendly driving directions, and that I know I can buy low-waste, packaging-free cosmetics from a company like Lush.
4. Reward customer loyalty.
   Shoppers have more choices than ever before, and supply chain woes are testing preferences even further. But when someone chooses a specific brand because they feel aligned with their values or like their eco-friendly products, that shopper doesn’t always get recognized or thanked. Implementing a rewards program or following-up with customers after their purchases is one way you can make loyal shoppers feel appreciated while creating a lasting relationship that extends as long as possible.

There’s a new subsea cable in town: Topaz, the first-ever fiber cable to connect Canada and Asia.

Once complete, Topaz will run from Vancouver to the small town of Port Alberni on the west coast of Vancouver Island in British Columbia, and across the Pacific Ocean to the prefectures of Mie and Ibaraki in Japan. We expect the cable to be ready for service in 2023, not only delivering low-latency access to Search, Gmail and YouTube, Google Cloud, and other Google services, but also increasing capacity to the region for a variety of network operators in both Japan and Canada.

Google is spearheading construction of the project, joined by a number of local partners in Japan and Canada to deliver the full Topaz subsea cable system. Other networks and internet service providers will be able to benefit from the cable’s additional capacity, whether for their own use or to provide to third parties. And, similar to other cables we’ve built, with Topaz we will exchange fiber pairs with partners who have systems along similar routes. This is a longstanding practice in the industry that strengthens the intercontinental network lattice for network operators, for Google, and for users around the world.

Network infrastructure investments like Topaz bring significant economic activity to the regions where they land. For example, according to a recent Analysys Mason study, Google’s historical and future network infrastructure investments in Japan are forecasted to enable an additional $303 billion (USD) in GDP cumulatively between 2022 and 2026.

The width of a garden hose, the Topaz cable will house 16 fiber pairs, for a total capacity of 240 Terabits per second (not to be confused with TSPs). It includes support for Wavelength Selective Switch (WSS), an efficient and software-defined way to carve up the spectrum on an optical fiber pair for flexibility in routing and advanced resilience. We’re proud to bring WSS to Topaz and to see the technology is being implemented widely across the submarine cable industry.

While Topaz is the first trans-Pacific fiber cable to land on the West Coast of Canada, it’s not the first communication cable to connect to Vancouver Island. In the 1960s, the Commonwealth Pacific Cable System (COMPAC) was a copper undersea cable linking Vancouver with Honolulu (United States), Sydney (Australia), and Auckland (New Zealand), expanding high-quality international phone connectivity. Today, COMPAC is no longer in service but its legacy lives on. The original cable landing station in Vancouver — the facility where COMPAC made landfall on Canadian soil — has been upgraded to fit the needs of modern fiber optics and will house the eastern end of the Topaz cable.

Traditional and treaty rights, and local communities, are deeply important to our infrastructure projects. The Topaz cable is built alongside the traditional territories of the Hupacasath, Maa-nulth, and Tseshaht, and we have consulted with and partnered with these First Nations every step of the way.

“Tseshaht is very proud of this collaboration and our partnership with Google, who has been very respectful and thoughtful in its engagement with our Nation. That’s how we carry ourselves and that’s how we want business to carry themselves in our territory.“ — Tseshaht First Nation – Elected Chief Councillor-Ken Watts

“The five First Nations of the Maa-nulth Treaty Society are pleased that we have concluded an agreement with Google Canada and have consented to the installation of a new, high-speed fiber optic cable through our traditional territories. This agreement, in which both Google Canada and our Nations benefit, is based on respect for our constitutionally protected treaty and aboriginal rights and enhances the process of reconciliation. We would also like to acknowledge the sensitivity that Google Canada expressed during our talks in regard to the pain and trauma experienced by our people as a result of residential school experience. We look forward to a long and mutually beneficial relationship with Google Canada.” —Chief Charlie Cootes, President of the Maa-nulth Treaty Society

“Google’s respect towards our Nation is appreciated and has good energy behind it.” —Hupacasath First Nation – Elected Chief Councilor – Brandy Lauder

With the addition of Topaz today, we have announced investments in 20 subsea cable projects. This includes Curie, Dunant, Equiano, Firmina and Grace Hopper, and consortium cables like Blue, Echo, Havfrue and Raman — all connecting 29 cloud regions, 88 zones, 146 network edge locations across more than 200 countries and territories. Learn about Google Cloud’s network and infrastructure on our website and in the below video.