Stock Exchanges in the Cloud for SMB/SME Business

Have been pondering about building stock exchanges in the cloud and whenever I tweet it is like placing an order in an exchange, the only difference being it is textual rather then monetary information.
NYSE and NASDAQ already use and provide cloud computing services for their members and I am sure there are a number of exchanges which also offer this facility.
Today I came across a  design for a stock engine bid matching engine in the cloud  by Mr. Ashish Banerjee http://www.ashishbanerjee.com/bid-matching-engine. in the public cloud using Amazon Web Services.

SMB/SME Exchanges in the Cloud will signify a New Era for trading!

Today's blog is about designing a Stock Exchange in the Cloud for SMB (Small and Medium Business) or also called as SME ( Small and Medium Enterprises) in India.
SMB/SME are burdened with expensive debt and an exchange for listing their equity will  allow them to reduce their cost of debt and also distribute the business risks to shareholders.
As large corporations get bruised the future will belong to the SMB/SME Business who are agile and nimble and hungry for growth. The SMB/SME  provide employ a large number of people and also contribute significantly to the economic growth.
The SMB/SME companies need low threshold for listing and also adequate liquidity for their stocks, thus the ideal solution will be to have integrated exchange  depository and clearing house. The cloud provides an ideal and secure platform for  building such an exchange.
Here are the benefits of moving SMB/SME Exchanges to the cloud
1. Quick setup of the exchange, can be accomplished in weeks.
2. Reliability, Latency and everything else that the Cloud Offers.
3. Economical storage of data.
4. Low start up cost
5. Agility and Innovation
6. Low cost of ownership which relates to lower transaction cost.

The SME/SMB stock exchanges should be owned and  built by the SMB/SME Industry Associations rather then the larger exchanges.
A frugal and Gandhi engineering approach is needed for these exchanges to make them viable.
A regulator is still be needed to oversee the operations, but the regulator must insist more on self regulation rather then imposing stringent controls which are normally required for the larger exchanges.
Well these could be baby steps in new era of exchange technology but if these SME/SMB exchanges in the cloud are successful it will not be long before the bigger exchanges move into the Cloud.

Stock Exchanges in the Cloud for SMB/SME Business

Have been pondering about building stock exchanges in the cloud and whenever I tweet it is like placing an order in an exchange, the only difference being it is textual rather then monetary information.
NYSE and NASDAQ already use and provide cloud computing services for their members and I am sure there are a number of exchanges which also offer this facility.
Today I came across a  design for a stock engine bid matching engine in the cloud  by Mr. Ashish Banerjee http://www.ashishbanerjee.com/bid-matching-engine. in the public cloud using Amazon Web Services.

SMB/SME Exchanges in the Cloud will signify a New Era for trading!

Today's blog is about designing a Stock Exchange in the Cloud for SMB (Small and Medium Business) or also called as SME ( Small and Medium Enterprises) in India.
SMB/SME are burdened with expensive debt and an exchange for listing their equity will  allow them to reduce their cost of debt and also distribute the business risks to shareholders.
As large corporations get bruised the future will belong to the SMB/SME Business who are agile and nimble and hungry for growth. The SMB/SME  provide employ a large number of people and also contribute significantly to the economic growth.
The SMB/SME companies need low threshold for listing and also adequate liquidity for their stocks, thus the ideal solution will be to have integrated exchange  depository and clearing house. The cloud provides an ideal and secure platform for  building such an exchange.
Here are the benefits of moving SMB/SME Exchanges to the cloud
1. Quick setup of the exchange, can be accomplished in weeks.
2. Reliability, Latency and everything else that the Cloud Offers.
3. Economical storage of data.
4. Low start up cost
5. Agility and Innovation
6. Low cost of ownership which relates to lower transaction cost.

The SME/SMB stock exchanges should be owned and  built by the SMB/SME Industry Associations rather then the larger exchanges.
A frugal and Gandhi engineering approach is needed for these exchanges to make them viable.
A regulator is still be needed to oversee the operations, but the regulator must insist more on self regulation rather then imposing stringent controls which are normally required for the larger exchanges.
Well these could be baby steps in new era of exchange technology but if these SME/SMB exchanges in the cloud are successful it will not be long before the bigger exchanges move into the Cloud.

Regulators Need Technology Leadership in their Team

Markets today are dependent on Technology as their backbone and with more exotic product offerings and technology driven trading solutions regulators need technology leadership to manage the market. 
With a changing technology landscape and blurring borders for trading the inherent technology risks multiply each years and most times the regulator is playing catch up.
Many Regulators treat technology as a Black Box and are more dependent of the exchanges to provide the required IT Governance Risk and Compliance for the solutions. 

A informed and fair Regulator is needed for any Game including Markets.

A cricket match at Mumbai 

In a dynamic market and fast paced world it is time the Regulator metamorphosed with strong technology leadership  for better governance and safer markets. 

Regulators Need Technology Leadership in their team for fair and compliant markets.. 

Cloud Computing at SPJIMR Business School

Today  I had the honor to speak on Cloud Computing to the MBA Students  at India's premier Business School SP Jain (www.spjimr.org).
With an average work experience of more then six years in the IT industry these students are here on a sabbatical to hone their management skills.

S.P.Jain Institute of Management & Research Mumbai 

The students already use Google Services and they are already mature end users of cloud computing.
Many of the students had done great technology projects and were concerned about the fact that the Cloud was a disruptive technology and a game changer.
They  were keen to know what would be the future of the IT services industry in India. I suggested they follow the stock prices of the Indian IT companies :-) to get a better insight on the future of these companies.
At the end of the session the students were  keen to explore a career in Cloud Computing and they will add value to the organizations' that hire them.
It was great interacting with the students and I applaud the faculty of the Business School for introducing Cloud computing in the students academic curriculum.

Exchangebus - Crystal gazing into future markets

As the world markets move into a tizzy and southwards I dedicate my new blog to the world of financial markets.

Financial Markets are like landscaped gardens and need constant tending. 

The financial markets  are at crossroads and  the way we trade will change in this decade:
1. The basis or order matching may change, faster trading engines do not ensure best price discovery, the algorithmic trading engines have also peaked, the market mechanism will need to be overhauled.
2.Cloud Computing Technology will reduce the technology  cost barrier to build exchanges.
3. Trading may evolve from equities and commodities to  newer trade-able items like labor and resources in our solar system.
4. Regulators will be under pressure to bring order into the markets and traders will continue to stay ahead of the regulator.
5. Barriers to global trading will emerge, which may also mean  change in global markets we see today.
6. Risks will continue in trading, with gradual introduction of digital money and one-world currency geography will cease to be of concern.
7. There will be huge upheavals in the way we view global economics as we enter fuzzier and uncharted marketplaces.

APPLE may be Pipped by Asian Tigers.

Apple biggest weak spot seemed to be its manufacturing in China, but there now emerges a bigger risk which is in the form of law suits and court hearings.

The other Asian Tigers China and Taiwan are now lawsuits against Apple in Korean and US courts.
Samsung is fighting Apple in Korean courts and is winning, while HTC is fighting in the US court.
This mean the APPLE leadership will have to spend more time in court rooms and keeping their supply chain moving rather then spend time on innovation and building the Apple spaceship at Cupertino (  http://bit.ly/pmLM2U  ).

Apple's leaderships will devote time to fighting law suits and keeping the supply chain open , Apple may miss its deliveries for Christmas 2011 and the Asian Tigers may Pip Apple at a this crucial marketing season.

HTC sues Apple in latest round of patent dispute   

http://bit.ly/qKmvMF

South Korean consumers band together to sue Apple

http://www.zdnet.com/blog/btl/south-korean-consumers-band-together-to-sue-apple/55254?tag=nl.e550

US Market Meltdown and Technology Business

The US Market Meltdown and the imminent austerity measure will mean a more prudent USA and a weaker US Dollar making imports and outsourcing dearer.

A New Era for Technology Business after the Market Meltdown

Some changes in The  Technology Business will be:

 Technology Manufacturing will move back to USA – In a phased manner technology manufacturing will move to back to USA as global manufacturing will not  provide significant cost savings.

Software/BPO/KPO Outsourcing will move back to companies in the USA, this will affect the fortunes of companies in the rest of the world.

 Renewed Infrastructure creation will call for newer and innovative technology solutions in traditional areas like construction and road building for efficiency and control.

Cloud Computing  will exponentially grow in the next two quarters and will be the catalyst for technology cost reduction and business agility.

 VC and Angels will tighten their belts, there will be many start ups closing as  money becomes scare and  VC and Angels abandon support. In some cases there will be forced merger of businesses for efficiency in operations and revenue realization.

In conclusion the US Market will emerge stronger and confident and Americans will get back their jobs and dignity.

Cloud Computing is the Silver Lining as Dark Clouds surround Global Markets !.

Global Markets are crashing like Nine Pins, the future looks bleak, the US is predicted to be heading to a double dip recession and the world towards economic doom.
The global markets are covered with Dark Clouds of the impending financial tsunami.

Business will recover in this tough situation only cost reduction and migrating to the Cloud offers an opportunity to save on Technology Costs.
When you have no money to spend the resistance to adoption of the Cloud will diminish and the Business will innovate and use the Cloud.
The Cloud is an opportunity which Business needs to clasp with both hands like an answer to a drowning persons prayer.
The cloud is not a dying man's straw to clutch, it is resilient, mature and is working for a number of enterprises and entrepreneurs across the world. The Cloud today is strong like a 100 year old Oak Tree.
The cloud will be the Silver Lining for Business to come out valiant from these hard times and provides an opportunity to  clean their technology systems in their organizations. With scarce money the OPEX model of Cloud computing will be be an ideal solution for cash starved businesses.
We will also see consolidation of Cloud Service providers as VC's pull out their funding and force mergers into more manageable entities  for economy of scale. This will be a great boon for consolidation in the Cloud Computing Service Providers.
This is a great time for Cloud Computing and it is time the Board and Business Leaders consider the Cloud for reducing business costs and improving agility.
Cloud Computing is the Silver Lining as Dark Clouds surround Global Markets !.

Cloud Strategy begins with IT GRC

Cloud Strategy should start with identifying whether the Cloud meets the IT GRC (Governance Risk and Compliance) requirements of your Business.
Issues on Security of the Cloud are emerging from Business which have a complex IT GRC requirement like Healthcare and BFSI verticals who have been cautious in adopting the Cloud.

The Bridge to the Cloud is your Business's IT GRC posture.

The first step is to figure out the maturity of IT GRC in your Business and close the Gaps.
The next step is to apply your IT GRC requirement to a generic cloud architecture and see if it meets the IT GRC needs of your Business, there will be some areas which will need attention.
The final step is to identify a cloud service provider who meets your IT GRC requirements of your Business and if there are any Gaps work with the vendor in plugging them.
If at any step you find that the IT GRC does not meet your Business requirement you are better off not migrating to the cloud and it may be prudent for the Business to wait for more maturity in the Cloud Services.
This process of mapping your Business IT GRC to your Cloud Architecture  must be done as part of the the cloud strategy for the Business.
The Cloud Strategy is not about Agility and Economics it is about whether the Cloud meets your IT GRC requirements !