Welcome!

Containers Expo Blog Authors: Elizabeth White, Pat Romanski, Yeshim Deniz, Liz McMillan, Amit Gupta

Related Topics: @CloudExpo

@CloudExpo: 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
SYS-CON Events announced today that Avere Systems, a leading provider of hybrid cloud enablement solutions, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere Systems was created by file systems experts determined to reinvent storage by changing the way enterprises thought about and bought storage resources. With decades of experience behind the company’s founders, Avere got its ...
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, will discuss how by using...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
SYS-CON Events announced today that CAST Software will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter ...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, will discuss how from store operations...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...