Welcome!

Weblogic Authors: Michael Meiner, Michael Bushong, Avi Rosenthal

Related Topics: Cloud Expo

Cloud Expo: Article

Cloud Computing - Morgan Stanley is Banking on the Cloud

One of the more interesting points that kept reoccurring was the need for better security

Regardless of the downturn in the markets, Morgan Stanley is on track to spend more than ever on their IT budget. They seem to think that during periods of lower economic activity it gives them a rare opportunity to establish themselves in new areas of emerging technology that may give them a competitive advantage down the road.

I've spent the last few days hanging out with a bunch of bankers at the annual Morgan Stanley CTO Summit in San Francisco. The invite-only event mixes the top Morgan Stanley technology personnel, emerging technology companies and key players in the venture capital world.

Cloud Computing was a noticeably "hot topic" of conversation at this year's summit. My invitation to this year's event was a rare opportunity to pick the brains of the true enterprise decision-makers on the challenges as well as the opportunities for cloud computing within a large financial environment. This year was particularly interesting because of the downturn in the finance market and challenges associated with it.

I was surprised by just how informative this event actually was. I figured it would be just another "bankers" tech get together. I was wrong. Below are some of the key points I took away from the summit.

Cloud Computing was front and center this year
Cloud Computing was front and center this year. One of the more interesting points that kept reoccurring was the need for better security. There seems to be a definite desire to use "Cloud Infrastructure" both internally within high performance computing, trading platforms and other various software platform services. There seems to be a genuine desire to use external cloud resources such as Amazon. The need to secure data in the cloud was one of their single biggest concern. Those who offer this kind of "bridge to the cloud" will be the ones who will bring the most value to the banking industry. What is interesting, for the time being they seem more interested in keeping their "compute resources" safely tucked under the mattress then putting it to the hands of a "book store". (Personally I'd rather keep my money in the bank where it is safe and more easily managed in the same way I'd rather keep my computing infrastructure in a well managed cloud rather then in my office closet. Until the major banks realize this, I don't foresee a lot of movement toward the public cloud.)

Another interesting takeaway, the traditional enterprise sales model is dead. Getting in through the back door is the way of the future. SaaS, Cloud and Open source are all viable options and in some ways preferred. They provide a frictionless way for IT works within Morgan Stanley a way to try new approaches, services and technologies. They were also quick to point out that whether or not the software was traditional or hosted was secondary to what "problem" it solved. The ability to solve a partcular problem was the most important aspect in getting your product or service in the door. This point is more important then any license applied to the technology. So don't focus on the "it's SaaS", focus on the problem.


It's all about making money, not saving it
Also interesting was the declaration that cost is not always a major part of the decision process when looking at software and related services. One example was provided by a top level VP, his story involed a 2,000 server deployment used for some sort of risk analysis (he was vague). This deployment of 2,000 servers easily costs them several million dollars, moreover they only use these servers for about 1 hour per month (if at all). But when they do use these servers, on that one day when the "market goes crazy" it could mean the difference between a 2 billion dollar loss or a 1 billion dollar profit. His numbers may have been an exaggerated a bit, but the point hit home. (It's all about making money.)

Another area that kept being mentioned was how virtual desktop deployments are big business for the bank. VDI users now have the ability to work within their own "context" and have their personal desktop environment move with them. No longer do IT staff need to continuely maintain desktops onsite thus saving the bank a lot of time and resources. They also made mention that "human resources" is their biggest technology cost. If a employee changes position, moves to a new office and leaves all together, it's now just a couple of clicks - saving the bank a lot of money.

Interesting was the amount of data integration companies at the event. Based on the sheer volume of data integration companies at the event, I would say they are looking seriously at this area, although my conversations didn't touch upon this topic. (I was way to busy pushing my cloud agenda.)

One of the biggest surprises was, regardless of the downturn in the markets, Morgan Stanley is on track to spend more then ever on their IT budget. They seem to think that during periods of lower economic activity it gives them a rare opportunity to establish themselves in new areas of emerging technology that may give them a competitive advantage down the road. They also seem to think that their use of technology will directly influence their ability to maintain their lead in the lucrative tech IPO market (which appears to be non-existent this year).

They went on to say that the companies that emerge during the hard times tend to do better in the long term (Think Google). Morgan Stanley is ready to apply this to their own business and I applaud them for it. If I ever go IPO, I know who will represent me!

More Stories By Reuven Cohen

An instigator, part time provocateur, bootstrapper, amateur cloud lexicographer, and purveyor of random thoughts, 140 characters at a time.

Reuven is an early innovator in the cloud computing space as the founder of Enomaly in 2004 (Acquired by Virtustream in February 2012). Enomaly was among the first to develop a self service infrastructure as a service (IaaS) platform (ECP) circa 2005. As well as SpotCloud (2011) the first commodity style cloud computing Spot Market.

Reuven is also the co-creator of CloudCamp (100+ Cities around the Globe) CloudCamp is an unconference where early adopters of Cloud Computing technologies exchange ideas and is the largest of the ‘barcamp’ style of events.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nigeria has the largest economy in Africa, at more than US$500 billion, and ranks 23rd in the world. A recent re-evaluation of Nigeria's true economic size doubled the previous estimate, and brought it well ahead of South Africa, which is a member (unlike Nigeria) of the G20 club for political as well as economic reasons. Nigeria's economy can be said to be quite diverse from one point of view, but heavily dependent on oil and gas at the same time. Oil and natural gas account for about 15% of Nigera's overall economy, but traditionally represent more than 90% of the country's exports and as...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...