By: Matt Sarrel
Recently, the New York Stock Exchange announced that its cloud computing service, built on VMware, will offer enhanced security and rapid access to NYSE market data.
NYSE has also established minimum computing requirements in order to ensure a high quality experience and to avoid performance problems. NYSE’s cloud customers must purchase a minimum of 500 GB of storage and 96 GB of RAM. Each VM must also be configured to use at least 8 GB of RAM.
In the past, I’ve been involved in numerous projects that were hosted by NYSE or some other exchange in their data center. Typically, I would buy a server, ship it to them and lease a network drop plus bandwidth, with guaranteed market data feed and trade execution times. More recently, it’s become much easier to lease a bare metal server and install our software on it. But now, with its new cloud computing service, NYSE makes the process even easier by enabling users to start with a virtual machine. This means users can now develop and test trading software on a VM and then push the VM directly to NYSE. As James Staten of Forrester points out, this ability also means that financial firms can compete “on their trading algorithms, market insights and knowledge,” without the location of your server and “big money prioritization” creating an uneven playing field. That’s very cool.
This way financial firms can focus on what they do best. No, not getting rich off of fat maintenance fees while taking unconscionable risks with clients money, but rather developing new strategies and investment tools, analysis of existing tools, and developing and testing algorithm based trading systems. The underlying network, storage, and compute resources are provided for them securely.
Financial firms manage their cloud environments through vCloud Director, which I’ve been blogging about for quite some time. With this new cloud computing service from NYSE, they can now provision an OS and then remote in to provision applications on top of the OS.
The cloud launched from the NYSE’s new data center in Mahwah, NJ and will expand to locations in London, Toronto and Tokyo later this year.
For more information, be sure to check out Mathew Lodge’s post on the RethinkIT blog – he offers an interesting perspective on what this move by NYSE means for the future of cloud computing, as internal IT organizations and external cloud service providers work to offer more flexible infrastructure to meet customer specific needs.
Matthew D. Sarrel (or Matt Sarrel) is executive director of Sarrel Group, a technology product testing, editorial services, and technical marketing consulting company. He also holds editorial positions at pcmag.com, eweek, GigaOM, and Allbusiness.com, and blogs at TopTechDog.