For some time now, high-performance computing has been making its way into the financial services sector. Up until recently, however, computing’s impact had been most felt in trading, where shaving off microseconds of latency and having access to more processing power meant having an advantage over your competitors.
As low-latency network solutions and especially cloud computing have become more ubiquitous, though, the technology that was once only used to provide an edge in trading is now being used to provide competitive advantages in other areas like analytics and algorithm development.
Moving forward, it seems that financial services firms will need to look to leverage more real-time and historical data to gain an edge. Leveraging data and pushing the envelope to develop new algorithms, trading models, and financial instruments takes higher end servers with increased processing power and speed along with petabyte scale storage which, quite frankly, most financial services firms don’t have in house. Here’s what that means in practice:
Looking to the future as a financial services provider will in many cases mean choosing a colocation provider that allows this growth to happen. Colocation providers may seem like they’re a dime a dozen, but partnering with the wrong one could mean the difference between simply hosting data off-site and leveraging technology to gain a competitive advantage.
Interested in learning more about how Telx can help financial services firms grow in the face of this changing industry? Reach out via the contact page of our site, or by Twitter, Facebook, or LinkedIn—we’d love to hear from you!