Conference Dailys TRADETech Daily 2018 - Page 24

THETRADETECH DA I LY THE OFFICIAL NEWSPAPER OF TRADETECH 2018 Amazon Web Services and other cloud providers are fast becoming a critical part of the financial world. But how is this impacting the traditional providers? J eff Bezos is the founder of Amazon and one of the world’s richest CEOs, but did you know that he once worked in the financial industry? When you think about it, it makes sense considering Amazon initially started up as an online custodian and deposi- tory for books. But yes, prior to starting up one of the world’s largest companies, Bezos worked at Bankers Trust, before it was taken over by Deutsche Bank in 1999. Joining as a product manager, he moved up to become a vice pres- ident within its technology unit. However, according to one report, Bezos got “bored” with the company and joined the then two- year old hedge fund D.E. Shaw at the age of 26, where he was tasked with researching new business opportunities at the height of the dotcom bubble. It was here that his vision of Amazon was born, and in 1994 the company was found- ed. Fast forward 20 years, and the original vision of Amazon has greatly evolved from page-turners. It has been at the forefront of technological advancements in pretty much every industry. In 2010, the cloud was an 24 THETRADETECH DAILY early phenomenon with limited adoption by a handful of organisations. These companies included Amazon Web Services (AWS), Mic- rosoft Azure and Salesforce.com. Now AWS has ballooned into a $12 billion business and has more market share than its closest competitors Azure and Google com- bined, according to Synergy Research Group Where AWS has excelled, is its move into the financial services sector. Its cloud computing has massively lowered barriers to entry for financial start-ups, and for those companies that want to take on the banks. They can use the tech giant’s cloud to quickly set up systems. Particularly with the buy-side, AWS has grown its client base significantly. “The AWS trend has become a major one, where organisations want to tap it for its on-demand cloud technology services. It first started with some of the smaller-sized firms, but we have signed on some asset managers that want everything to be put onto AWS,” says Gurvinder Singh, CEO of Indus Valley Partners. “There has been a big shift in attitudes towards AWS on the buy-side, as it allows scale and provides easy set-ups for their CTOs.” However, the next question when looking at AWS’s remarkable growth is will it lead to a greater role in financial services where it will compete with those providers? Stepping on toes AWS has made some significant strides in some parts of the financial services and capi- tal markets sector. Its lengthy clients include UK insurer Aviva, US insurer Liberty Mutual Insurance, data provider Thomson Reuters, and DBS Bank, to name a few. For its capital markets customers, which also include Nasdaq and the London Stock Exchange, its focus has been on providing analytics applications, allowing scalability and reducing processing times. New rules and regulations over reporting and risk calculation are also playing into AWS favour, where it sees an opportunity to expand its services. “We see particular interest in risk-related workloads including actuarial calculations and Comprehensive Capital Analysis to Review (CCAR), Fundamental Review of