Following our recent announcement of funding by J.P. Morgan, Barclays, and ICAP, Cloud9 was profiled by the Wall Street Journal, covering the potential impact of our service for Tier 1 banks and financial firms.
Some highlights from the article, which primarily covered the adoption of the Cloud9 service by J.P. Morgan, included the cost-saving impact as well as the flexibility it would give traders:
“After decades of transmitting trades by phone line, J.P. Morgan Chase & Co. is close to cutting the cord.
The largest U.S. bank by assets said it is in discussions to move its world-wide trading systems to an Internet-based “cloud” computing service maintained by startup Cloud9 Technologies LLC.
The New York bank lent money to Cloud9 last year, said Rick Smith, head of private investments at J.P. Morgan. The company’s 8,000 traders for the first time could work from anywhere if the deal is completed.
Wall Street for decades has relied on telephone lines connected to workstations to transfer trading data and record phone conversations. But some of the biggest U.S. banks have been considering shifting some services to the cloud, where they can rent computing power from companies that maintain large clusters of servers rather than running their own data centers. The moves have been slowed by concerns about the security of the business.
J.P. Morgan… is considering the technology because it has the potential to cut costs, allow flexibility for traders and eliminate the need for a separate facility in a disaster recovery scenario, Mr. Smith said. It also has higher voice quality and data security than the bank’s current internal system, he added.
“We view it as an opportunity to save money for the firm and to have a better voice communications system across the trading marketplace,” Mr. Smith said.”
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