The Amazon subsidiary wants to intensify its partnership with the investment bank.
(Photo: Bloomberg)
Las Vegas The partnership between Amazon Web Services, the cloud subsidiary of the e-commerce group of the same name, and Goldman Sachs has now been tried and tested. Goldman Sachs boss David Solomon was already a guest at the annual AWS developer conference “Reinvent” two years ago – and described the cloud as central to his company’s ability to innovate.
At this year’s appearance at the Reinvent, which takes place in Las Vegas until Friday, Solomon again found words of praise for the cooperation with AWS. Just a few minutes earlier, both companies announced that they wanted to work even more closely together in the future.
In his keynote speech on Tuesday, AWS boss Adam Selipsky announced the start of a kind of financial database that the cloud company wants to operate together with Goldman Sachs. The service is called somewhat bulky “Goldman Sachs Financial Cloud for Data with Amazon Web Services” – and is initially intended for financial professionals with whom the investment bank is already working.
Goldman Sachs is already providing some of its institutional customers with access to the company’s own financial data. A lot of work is currently being invested in harmonizing the various IT systems of the companies. “We want to eliminate friction,” said Solomon, explaining the calculation.
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Goldman becomes a software company
The cloud technology from AWS, which is already used today by numerous companies and is accordingly connectable, should help. The close interlinking should also reduce the latency, i.e. the reaction speed of the communication systems. “In this way, we create added value for our customers compared to our competitors,” says Solomon.
Access to the Goldman Sachs data is intended to enable the bank’s customers to develop their own software that, for example, evaluates the data it contains and draws conclusions from it. This means that Goldman Sachs will partially become a software company, said AWS boss Selipsky.
For Amazon’s cloud division, the cooperation is above all further proof that cloud technologies can also be used in critical applications, for which strict regulatory standards typically apply. In addition to Goldman Sachs, AWS also announced the US stock exchange Nasdaq as a project partner, which also wants to transfer its IT to the AWS platform.
Here, too, the cloud company’s technology should help to accelerate communication. The specialty: Instead of transferring its own infrastructure to the cloud, AWS will build several data centers especially for Nasdaq, which are isolated from the rest of the platform.
Financial sector attractive
This service should also be made available to other customers who are currently concerned that they will no longer have physical access to their data after moving to the cloud – but still want to use the software services that AWS makes available to its cloud customers.
A similar partnership was recently announced by the world’s largest options exchange, the CME Group, which plans to transfer its infrastructure to the cloud with AWS competitor Google. However, with a market share of seven percent, Google is a rather small player (AWS: 32 percent).
The financial sector is just one industry in which AWS wants to establish its services more firmly. At the developer conference, for example, the group announced the start of a service that can be used to collect and evaluate vehicle data that is aimed at fleet managers in companies and car manufacturers, for example.
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