redefining perspectives 12th edition session 1

Redefining Perspectives A thought leadership forum for technologists interested in defining a new future

The Past, Present and Future of Cloud

Computing in Capital and Commodity Markets

Session 1

Dixit Patel Vice President Technology

Sapient Global Markets (London)

Dixit brings over 20 years of consulting experience

across various industry sectors. He specializes in

enterprise architecture planning and IT strategy

In his current role he is responsible for all solution

delivery projects for the Sapient Global Markets

European business

Sudip Dasgupta Director – Infrastructure

Sapient Global Markets (London)

With over 15 years in the industry, Sudip is an expert

in infrastructure design and operations including

capacity planning, design of high availability and disaster

recovery architectures, and network designs

He has also designed compute, storage and network

architectures for high-end infrastructure solutions

including multiple virtualisation technologies

THE PAST, PRESENT AND FUTURE OF

CLOUD COMPUTING IN CAPITAL &

COMMODITIES MARKETS Dixit Patel and Sudip Dasgupta

May 2014

1. What is Cloud Computing?

• Definition and History

• Architectural Components of Cloud

2. The Cloud Market

3. Cloud Adoption

• Drivers and Challenges

4. Planning for the Cloud

5. Q&A

Topics

6 © COPYRIGHT 2014 SAPIENT CORPORATION

What is Cloud Computing?

A Definition for Cloud Computing

“Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of

configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly

provisioned and released with minimal management effort or service provider interaction.”1


Note 1: Source: National Institute of Standards and Technology, US Department of Commerce

Essential Characteristics

Delivery Models

Deployment Models

Broad Network

Access

Rapid

Elasticity

Measured

Service

On-Demand

Self-Service

Resource Pooling

Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service

(IaaS)

Private Hybrid Community Public

Multi-tenancy

Recap of the Technology Developments

The cloud is not an overnight phenomenon

• The history of cloud technology can be traced back half a century


1960s 1962 1972 1998 2006 2009 1990s 1999 2006 2008

John McCarthy

devises notion of

timesharing for

organizations to use

the same mainframe

simultaneously

JCR Licklider

introduces the

"Intergalactic

Computer Network”

(networked time-

sharing apps)

IBM releases

VM/370, its virtual

machine OS for the

System/370

mainframes

Spread of the

Internet sets the

stage for an

accessible public

cloud

VMware is founded

and releases

VMware

Workstation the

following year,

virtualizing x86

Salesforce.com

pioneers the

concept of

enterprise apps

over a website

(SaaS)

Sapient designs

private cloud for

one of the largest

civilian IT programs

AWS launches

Elastic Compute

Cloud (EC2),which

becomes a widely

used IaaS platform

Sapient implements

its internal private

cloud, which is

profiled in a VMware

case study

Google launches its

Google Apps suite

of cloud-based

applications

Architectural Components of Cloud


CPU Memory NIC Disk

Infrastructure Resources

Hypervisor/VM

Orchestration and

Management

Provisioning

Monitoring

Reporting

Capacity

Billing

SLA Management

Virtual

Machine

OS

APP

Virtual

Machine

OS

APP

Virtual

Machine

OS

APP

Virtual

Machine

OS

APP

Virtual

Machine

OS

APP

Se

cu

rity

User

Creation of new instances

on demand using templates

Full stack monitoring and

alerts

Analytics and reporting on

usage

Elastic scalability for “burst”

workload profiles

Mapping of required SLAs to

achieved results

Ability to meter usage and

charge-back (pay-per-use)

The Cloud Market

The Cloud Market: An Increasing Trend


Source: Forrester Research, 2011 and Gartner, 2010

The worldwide market for cloud services is estimated to be

worth over $140 billion today

• Financial Services, Government, Manufacturing, and Communications /High-Tech account for over 2/3rd of the cloud market

• Within Financial Services, Trading Organizations lag behind retail and corporate banking divisions

• Energy firms lag behind their financial services counterparts in adoption

What the Cloud Market Looks like


Source: Forrester Research, 2011

• SaaS is the leading segment of cloud computing followed by IaaS, both in terms of current adoption and future growth

• Public cloud markets account for about $80 billion

• The market is expected to continue growing at over 20%

Cloud Adoption

Key Drivers for Adoption within Trading Organizations

• Cost management

• Configuration management

• Maintenance

• Standardization

• Agility and speed of deployment

• Financial management

• Cap-ex to op-ex

• Regulatory compliance and transparency

• Trading organization market shift post credit crunch

• Simplification and rationalization of business models


Key Challenges for Adoption within Trading Organizations

• Complex in house enterprises requiring

re-architecture

• Security and data privacy requirements

• Integration / Interoperability

• Service quality – Performance,

Availability

• Complex governance and management

• Commercial model complexity


Source: IDC Enterprise Panel, 2009 and Forrester Research, 2009

Planning for the Cloud

Planning for the Cloud – Steps to Follow


DISCOVER

“Understand the type and size of the

opportunity”

TRANSFORM “Transform your enterprise with a transition to

cloud”

OPTIMISE

“Implement cloud characteristics with existing

private infrastructure”

Key Considerations

Risks to the

business Assess your

application

portfolio

Comparison with

internal hosting

option

Availability and

reliability

requirements

Develop the cloud

operating model

Business case

development

Analysis of cloud

vendor’s products

Cloud vendor

assessments

Performance

expectations

Socialise impact

on the

infrastructure

lifecycle

Example Vendors

http://shop.ca.com/

http://www.datasynapse.com/

Planning for the Cloud – Functional View


Within Capital Markets and Commodities:

• Back office applications will lead the way

• Middle office will follow. They will benefit from elastic compute capability

• Front office trading will be pre-dominantly on-premise

• Functions like equities trading are latency-sensitive and benefit from private infrastructure, near exchanges

Planning for Cloud – Potential Target Model


Public Cloud

Public Cloud

Private Cloud

Hybrid Cloud Public Cloud

Hybrid Cloud

Public Cloud

Client Server

Virtualisation

Virtual

Desktop

Public Cloud

IaaS

SaaS Notes

UK-based Tier 1 Investment

Bank

Investment Banks:

Most of the server estate is virtualised.

Extensive use of virtual desktops, including in some

cases thin terminals.

Use of SaaS for key applications like CRM. Large Tier-1 Investment Bank

Capital Markets Start-up Cloud solutions provide a low barrier to entry for start-

ups

Italian Integrated Energy

Company Commodities Trading Organisations:

A lot of the server infrastructure is virtualised, but there

is opportunity to drive this higher.

The firms are starting to push virtual desktop to control

costs and administration effort

VMware and Citrix are main virtualisation technologies.

Large Germany-based Utility

Large UK-based Utility

What have we seen with our clients


Thank You

redefining perspectives 12th edition session 1

Technology

cloud services

future of cloud computing

cloud adoption drivers

history of cloud technology

internal private cloud

google apps suite of

accessible public cloud

elastic compute cloud