One amongst the ways in which they need been ready to get through these tough times is through more intelligent use of technology, to assist them save on prices, for example.
But, the banks can need to continue looking at how they will make best use of technology if they need to stay compliant with the numerous laws that are coming back out around risk management procedures and practices.
In order to perform the specified risk modelling in this new world order, it is estimated the banks can would like something like 10x the computing power they were using before the crisis. Thus the question is, where will they get these resources? Existing data centres are changing into heavily over-utilised and there's little spare capacity. In fact, there is one investment bank reputed to use a lot of information across its data centres than the whole city centre of Manchester! This might be an urban myth however it's most likely not too far from the truth.
Accordingly, several banks are currently looking seriously into making a lot of use of cloud computing and grid computing services. This might be a good choice, notably because of the means banks utilise computing power. Usually, in order to run risk simulations, they need to create terribly significant use of computing at sure times of the day, whereas at different times, their computers are virtually idle. So utilization of existing resources in all probability runs at less than 50% some of the time.
Sharing compute resources and using cloud computing would seem like the sensible answer, but there are problems associated with that approach. 1st of all, the high performance computing (HPC) applications typically run by investment banks do not sit too well on the cloud. This isn't the most important issue however. The key drawback is that banks usually don't like to share, notably not with their competitors. Security is also a big issue, although cloud services are usually seen as pretty secure these days, security issues around cloud are still inflicting reluctance on the part of the banks. Then after all there's the entire issue of Service Level Agreements (SLAs), for instance the requirement to complete risk calculations by a particular time of the morning, which is another problematic space with shared resources.
The solution might be a replacement paradigm known as Grid as a Service (GaaS), whereby high performance compute is offered on-demand, across the grid, on a pay-as-you-go basis. Banks could encapsulate specific calculations and send them off to allotted compute resources in a very shared environment. This might permit banks to exploit all the various cloud infrastructure, services, middleware and compute power.
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Aaron R Daniel has been writing articles online for nearly 2 years now. Not only does this author specialize in Computer and Technology, you can also check out his latest website about:
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