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On-Premise Market Data Still Has a Key Role 

Panelists at FISD’s Tech Forum argue for a hybrid cloud/on-prem model

While front-office infrastructure in the cloud is generating excitement in capital markets technology circles, there’s still an important role for on-premise technology to play. That’s the takeaway from an insightful discussion at the FISD’s recent Tech Forum in London.  

Sapna Swaly, Exegy's Head of Sales for EMEA
Sapna Swaly, Exegy Head of Sales, EMEA

The panel, “A Down-to-Earth Look at the Role of On-Prem,” was moderated by Exegy’s own Sapna Swaly, Head of Sales for EMEA, and was focused on the current and future state of on-prem infrastructure. 

The tone wasn’t anti-cloud, so much as pro-“the right tool for the right job.” The panel of market data experts saw a role for cloud migration for certain aspects of market data delivery but noted that firms aren’t ready yet to stray too far from the strong track record of stability and performance offered by on-premise solutions. 

On-premise infrastructure provides opportunities for optimizing latency, exercising fine-tuned control, and maintaining operational resilience, they noted. Meanwhile, cloud infrastructure may be a better fit with less latency-sensitive strategies, entering new markets, and research and innovation.  

While market data in the cloud is often touted as more cost effective, panelists made the point that it is not universally less expensive. Infrastructure cost savings must be balanced by computational and data transference expenditures, especially for functions that must be “always on.” In those cases, the cost savings diminish considerably. 

Panelists agreed that most large institutions are still in the early phases of cloud adoption, and aren’t planning moves to fully cloud environments anytime soon. Swaly said this view is borne out by her own discussions with firms. “We’re all speaking about cloud adoption, but the reality is that most financial institutions remain predominantly on-prem,” she said.  

The panelists agreed that the most realistic path to the cloud is a hybrid model, which relies on a combination of on-prem, co-located, and cloud market data infrastructure, depending on a firm’s needs. 

“As we partner with firms in their cloud journey, we need to be ready to provide those hybrid solutions that can assure performance on the one hand, as well as fast time-to-market,” Swaly said. 

Exegy is uniquely equipped to guide firms on that journey, with a diverse suite of market data solutions that can be tailored to a firm’s latency requirements and balance of control vs. agility.  The breadth of Exegy’s portfolio allows us to partner with a firm to craft a hybrid infrastructure that keeps their head in the cloud and their feet on the ground. 

To determine your firm’s ideal on-prem/cloud configuration, ask to meet with an Exegy market data expert.