| In the last couple of years, investment banks have | | | | computers are virtually idle. So utilization of existing |
| been having quite a tough time, things have not been | | | | resources probably runs at less than 50% some of the |
| very easy for them, although now it seems there is | | | | time. |
| something of a recovery taking place. | | | | Sharing compute resources and using cloud computing |
| One of the ways they have been able to get through | | | | would seem like the sensible answer, but there are |
| these difficult times is through more intelligent use of | | | | problems associated with that approach. First of all, the |
| technology, to help them save on costs, for example. | | | | high performance computing (HPC) applications |
| However, the banks will need to continue looking at | | | | typically run by investment banks don't sit too well on |
| how they can make best use of technology if they | | | | the cloud. This isn't the biggest issue however. The key |
| want to stay compliant with the various regulations | | | | problem is that banks generally don't like to share, |
| that are coming out around risk management | | | | particularly not with their competitors. Security is also a |
| procedures and practices. | | | | big issue, although cloud services are generally seen as |
| In order to perform the required risk modelling in this | | | | pretty secure these days, security issues around cloud |
| new world order, it is estimated the banks will need | | | | are still causing reluctance on the part of the banks. |
| something like 10x the computing power they were | | | | Then of course there is the whole issue of Service |
| using before the crisis. So the question is, where will | | | | Level Agreements (SLAs), for example the need to |
| they get these resources? Existing data centres are | | | | complete risk calculations by a specific time of the |
| becoming heavily over-utilized and there is little spare | | | | morning, which is another problematic area with shared |
| capacity. In fact, there is one investment bank reputed | | | | resources. |
| to use more data across its data centres than the | | | | The answer could be a new paradigm known as Grid |
| entire city centre of Manchester! This may be an | | | | as a Service (GaaS), whereby high performance |
| urban myth but it's probably not too far from the truth. | | | | compute is offered on-demand, across the grid, on a |
| Accordingly, many banks are now looking seriously into | | | | pay-as-you-go basis. Banks could encapsulate specific |
| making more use of cloud computing and grid | | | | calculations and send them off to allocated compute |
| computing services. This could be a good option, | | | | resources in a shared environment. This would allow |
| particularly because of the way banks utilise computing | | | | banks to exploit all the various cloud infrastructure, |
| power. Typically, in order to run risk simulations, they | | | | services, middleware and compute power. |
| need to make very heavy use of computing at certain | | | | GaaS is certainly set to grow and could change the |
| times of the day, whereas at other times, their | | | | face of computing in the investment banking world. |