This article refers to a presentation I gave in Boston on March 22, 2010 about cloud computing in financial services. Sure people are using Salesforce.com and other SaasS applications, but the use of cloud computing as an approach to resource allocation has a long way to go. A small excerpt from the article:
That’s the key finding of a cloud computing study done the by the Tabb Group in December. The report’s chief author is Tabb Group senior analyst Kevin McPartland, who spoke last week at the International Securities Association for Institutional Trade Communication (ISITC) in Boston.
As for trading systems, relying on computers somewhere in the cloud extends the latency of executing a transaction, which in today’s environment of millisecond competition would put traders at a distinct disadvantage.
But the reason is not technical in the back office. There, regulation means cloud computing is not a real option, yet.
“Technologically, it’s ready, but from both cultural and regulatory [perspectives], financial services are not ready for cloud computing,” he said.