Session 1: Topic: Cloud Computing in Capital and Commodity Markets: Past, present and future Briefly recap technology innovations that have led to the emergence of the Cloud as a major IT imperative, and examine future possibilities that support its wider adoption. We will review how Cloud technologies are currently being leveraged in the industry, and more specifically, how companies in the capital markets and commodities realm are leveraging them. Explore factors to be mindful of while planning Cloud adoption for the enterprise and also develop a high level roadmap for moving services to the Cloud. Speakers: Dixit Patel, Vice President Technology, Sapient Global Markets (London) and Sudip Dasgupta, Director Infrastructure, Sapient Global Markets (London)

1. Redefining Perspectives
A thought leadership forum for technologists interested in defining a new future

2. The Past, Present and Future of Cloud
Computing in Capital and Commodity Markets
Session 1

3. Dixit Patel
Vice President Technology
Sapient Global Markets (London)
Dixit brings over 20 years of consulting experience
across various industry sectors. He specializes in
enterprise architecture planning and IT strategy
In his current role he is responsible for all solution
delivery projects for the Sapient Global Markets
European business

4. Sudip Dasgupta
Director – Infrastructure
Sapient Global Markets (London)
With over 15 years in the industry, Sudip is an expert
in infrastructure design and operations including
capacity planning, design of high availability and disaster
recovery architectures, and network designs
He has also designed compute, storage and network
architectures for high-end infrastructure solutions
including multiple virtualisation technologies

5. THE PAST, PRESENT AND FUTURE OF
CLOUD COMPUTING IN CAPITAL &
COMMODITIES MARKETS
Dixit Patel and Sudip Dasgupta
May 2014

6. 1. What is Cloud Computing?
• Definition and History
• Architectural Components of Cloud
2. The Cloud Market
3. Cloud Adoption
• Drivers and Challenges
4. Planning for the Cloud
5. Q&A
Topics
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7. What is Cloud Computing?

8. A Definition for Cloud Computing
“Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of
configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly
provisioned and released with minimal management effort or service provider interaction.”1
8© COPYRIGHT 2014 SAPIENT CORPORATION
Note 1: Source: National Institute of Standards and Technology, US Department of Commerce
Essential Characteristics
Delivery Models
Deployment Models
Broad Network
Access
Rapid
Elasticity
Measured
Service
On-Demand
Self-Service
Resource Pooling
Software as a Service (SaaS)Platform as a Service (PaaS)
Infrastructure as a Service
(IaaS)
Private Hybrid CommunityPublic
Multi-tenancy

9. Recap of the Technology Developments
The cloud is not an overnight phenomenon
• The history of cloud technology can be traced back half a century
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1960s 1962 1972 1998 2006 20091990s 1999 2006 2008
John McCarthy
devises notion of
timesharing for
organizations to use
the same mainframe
simultaneously
JCR Licklider
introduces the
"Intergalactic
Computer Network”
(networked time-
sharing apps)
IBM releases
VM/370, its virtual
machine OS for the
System/370
mainframes
Spread of the
Internet sets the
stage for an
accessible public
cloud
VMware is founded
and releases
VMware
Workstation the
following year,
virtualizing x86
Salesforce.com
pioneers the
concept of
enterprise apps
over a website
(SaaS)
Sapient designs
private cloud for
one of the largest
civilian IT programs
AWS launches
Elastic Compute
Cloud (EC2),which
becomes a widely
used IaaS platform
Sapient implements
its internal private
cloud, which is
profiled in a VMware
case study
Google launches its
Google Apps suite
of cloud-based
applications

10. Architectural Components of Cloud
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CPU Memory NIC Disk
Infrastructure Resources
Hypervisor/VM
Orchestration and
Management
Provisioning
Monitoring
Reporting
Capacity
Billing
SLA Management
Virtual
Machine
OS
APP
Virtual
Machine
OS
APP
Virtual
Machine
OS
APP
Virtual
Machine
OS
APP
Virtual
Machine
OS
APP
Security
User
Creation of new instances
on demand using templates
Full stack monitoring and
alerts
Analytics and reporting on
usage
Elastic scalability for “burst”
workload profiles
Mapping of required SLAs to
achieved results
Ability to meter usage and
charge-back (pay-per-use)

11. The Cloud Market

12. The Cloud Market: An Increasing Trend
12
© COPYRIGHT 2014 SAPIENT CORPORATION
Source: Forrester Research, 2011 and Gartner, 2010
The worldwide market for cloud
services is estimated to be
worth over $140 billion today
• Financial Services, Government, Manufacturing, and Communications
/High-Tech account for over 2/3rd of the cloud market
• Within Financial Services, Trading Organizations lag behind retail and
corporate banking divisions
• Energy firms lag behind their financial services counterparts in adoption

13. What the Cloud Market Looks like
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Source: Forrester Research, 2011
• SaaS is the leading segment of cloud computing
followed by IaaS, both in terms of current adoption
and future growth
• Public cloud markets account for about $80 billion
• The market is expected to continue growing at over 20%

14. Cloud Adoption

15. Key Drivers for Adoption within Trading Organizations
• Cost management
• Configuration management
• Maintenance
• Standardization
• Agility and speed of deployment
• Financial management
• Cap-ex to op-ex
• Regulatory compliance and transparency
• Trading organization market shift post credit crunch
• Simplification and rationalization of business models
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16. Key Challenges for Adoption within Trading Organizations
• Complex in house enterprises requiring
re-architecture
• Security and data privacy requirements
• Integration / Interoperability
• Service quality – Performance,
Availability
• Complex governance and management
• Commercial model complexity
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Source: IDC Enterprise Panel, 2009 and Forrester Research, 2009

17. Planning for the Cloud

18. Planning for the Cloud – Steps to Follow
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DISCOVER
“Understand the type and size of the
opportunity”
TRANSFORM
“Transform your enterprise with a transition to
cloud”
OPTIMISE
“Implement cloud characteristics with existing
private infrastructure”
Key Considerations
Risks to the
business
Assess your
application
portfolio
Comparison with
internal hosting
option
Availability and
reliability
requirements
Develop the cloud
operating model
Business case
development
Analysis of cloud
vendor’s products
Cloud vendor
assessments
Performance
expectations
Socialise impact
on the
infrastructure
lifecycle
Example Vendors

19. Planning for the Cloud – Functional View
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Within Capital Markets and Commodities:
• Back office applications will lead the way
• Middle office will follow. They will benefit
from elastic compute capability
• Front office trading will be pre-dominantly
on-premise
• Functions like equities trading are latency-
sensitive and benefit from private
infrastructure, near exchanges

20. Planning for Cloud – Potential Target Model
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Public Cloud
Public Cloud
Private Cloud
Hybrid Cloud Public Cloud
Hybrid Cloud
Public Cloud

21. Client Server
Virtualisation
Virtual
Desktop
Public Cloud
IaaS
SaaS Notes
UK-based Tier 1 Investment
Bank
Investment Banks:
Most of the server estate is virtualised.
Extensive use of virtual desktops, including in some
cases thin terminals.
Use of SaaS for key applications like CRM.
Large Tier-1 Investment Bank
Capital Markets Start-up
Cloud solutions provide a low barrier to entry for start-
ups
Italian Integrated Energy
Company Commodities Trading Organisations:
A lot of the server infrastructure is virtualised, but there
is opportunity to drive this higher.
The firms are starting to push virtual desktop to control
costs and administration effort
VMware and Citrix are main virtualisation technologies.
Large Germany-based Utility
Large UK-based Utility
What have we seen with our clients
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22. Thank You