Financial services enters next cloud computing evolution

Cloud computing will now form the centre of several operations at a global firm dedicated to post-trade market infrastructure for asset managers, custodians and brokers.

The Depository Trust and Clearing Corporation (DTCC) holds a view that cloud computing has reached a tipping point where its capabilities and cost efficiencies exceed those achieved by in-house data centres.

DTCC has used cloud services for about five years and is now expanding the technology throughout several external service and applications. It will "reduce risk and cost and improve the resiliency and security of DTCC's systems."

In its latest white paper on cloud computing, DTCC said the cost and value of cloud computing technologies is challenging long-standing justifications for provisioning or sustaining individually owned and managed data centres.

The white paper highlights that cloud operations have become so robust and sophisticated that many of the biggest companies cannot achieve the scale of some of the large cloud vendors with respect to performance, security, cost and scale.

DTCC noted, however, that moving applications originally developed within a corporate data centre to the cloud, a model known as "lift and shift," will not immediately deliver benefits.

"It is possible that migrating to the cloud could introduce additional complexity. Therefore, cloud strategies must carefully examine each application to ensure that the intended benefits are achievable," DTCC said.

DTCC chief information officer Robert Garrison said: "Cloud computing has moved past a tipping point and that the security, scalability, resiliency, recoverability and cost of applications in the cloud are better than many private enterprises could achieve on their own."

"As a result, we will pursue a strategy of building a cloud ecosystem that supports best practices and standards. At the same time, we take seriously our responsibility to be in full compliance with all relevant regulatory requirements and pledge to work in collaboration with our supervisors to achieve this," he said.

"Due to the critical nature of the services provided by DTCC, we will execute our cloud strategy in collaboration with key stakeholders, including clients and supervisors."

DTCC aims to simplify the complexities of clearing, settlement, asset servicing, data management and information services across asset classes, bringing increased security and soundness to financial markets. In 2016, DTCC's subsidiaries processed securities transactions valued at more than US$1.5 quadrillion.

Read more: cloudDTCCcomputingasset managerbrokerCustodianCustodyDepository Trust & Clearing CorporationRobert Garrisontechnology
Editor's Choice
About three-quarters of Australian institutional investors are incorporating environmental, social and governance factors in investment decisions.
Businesses looking to integrate enhanced technological capability must consider its future impacts, or else risk creating a greater trust deficit in the financial services industry.
A comprehensive review of Praemium chief executive Michael Ohanessian's termination and subsequent reinstatement determined the previous board acted inappropriately and unreasonably.
Advisers will soon have access to Challenger's deferred lifetime annuities through Colonial First State platforms.
Brought to you by
10 MAY 2017
Millennials are in an interesting situation: they are going to rule the world but they can't necessarily own it. Welcome to the housing affordability crisis: many young investors don't have a fighting ...
Get it Daily
Keep up to date, don't be the last to know! Get the Financial Standard Daily Newsletter.
Pocket investment guides featuring adviser case studies and a glossary.
Investing trends and strategies from the industry’s thought leaders.
Putting the spotlight on investment products that matter.
Expert Feed
Michelle Baltazar
A case for digital activism
The time is ripe for financial advisers to embrace their role as digital activists - fiduciaries who are early adopters of finance ...
Emma Rapaport
Smashed on university fees, smashed on retirement
Since Scott Morrison's pre-budget announcement that debt would be reclassified as 'good' or 'bad', the government spending spree has ...
Christopher Page
The next generation
On March 20, David Rockefeller - former Chase Manhattan chair and last of Standard Oil founder John D. Rockefeller's grandchildren ...
Michelle Baltazar
Hitting the mark
Ten years from now, every financial adviser in the country will be offering their client a managed account solution. It may happen ...
Featured Profile
Professional Subscription for $295
(inc GST) for 1 year.
FS Advice
The Australian Journal of Financial Planning.
Get the free iPad app
Download the Financial Standard iPad app for FREE.
Link to something QKOQLIyC