Cloud services becoming ubiquitous for data delivery: Google Cloud study

The Google Cloud-commissioned study found that 100% of trading systems and exchanges are expected to use new cloud-based services, such as derived data, in the next 12 months. In addition to trading systems, exchanges and data providers, commercial and investment banks are also offering additional connectivity, real-time data feeds, and trading applications delivered via the cloud.

Cloud is becoming ubiquitous for data delivery, with 93% of trading systems, exchanges and data providers offering cloud-based data and services, according to a new study commissioned by Google Cloud.

The survey was conducted online by Coalition Greenwich on behalf of Google Cloud from March 2021 to April 2021 among 102 institutional capital markets professionals at exchanges, trading systems, data aggregators, data producers, asset managers, hedge funds, and investment banks in eight countries including the United States, Canada, France, Germany, Italy, the Netherlands, Switzerland, and the United Kingdom.

"Our research found that while there are many drivers, demand for easier accessibility is fueling widespread adoption of cloud-based market data services, and associated trading infrastructures, across the buy-side and sell-side," Philip MoyerVice President, Strategic Industries, Google Cloud, wrote in a blog post.

The Google Cloud-commissioned study found that 100% of trading systems and exchanges are expected to use new cloud-based services, such as derived data, in the next 12 months. In addition to trading systems, exchanges and data providers, commercial and investment banks are also offering additional connectivity, real-time data feeds, and trading applications delivered via the cloud.

Below are the other key takeaways from the report:

• 90% of surveyed buy-side firms are currently consuming cloud-deployed market data, mostly for portfolio management, with 70% of them expected to consume even more cloud-deployed data in the next 12 months.
• Currently, 50% of exchanges, trading systems, and data providers are offering data products/services powered by artificial intelligence and machine learning, of which, 42% intend to offer AI-powered trade execution and trading analytics services in the next 12 months.
• 55% of commercial and investment banks are currently using AI/ML in the cloud.
• Exchanges, trading systems, and data providers are prioritizing the public cloud for internal insights, with 71% of the surveyed firms using it mostly for data transmission, processing, analysis, and long-term data storage.
• Over the next 12 months, 33% of new public cloud workloads will focus on data mining, data insights and advanced analytics, while 28% of new AI/ML tooling and infrastructure investments will focus on faster analytics and risk reviews, and 27% will focus on data quality maintenance.