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Wall Street Firms Look To New Technologies To Counter Budget And Skills Challenges

NEW YORK, June 24 /PRNewswire-FirstCall/ -- A survey of over 350 Wall Street Information Technology (IT) professionals has revealed a significant increase in the level of interest in new technologies and computing models, in particular cloud computing, as firms seek to overcome budgetary restrictions and skills shortages.

While there was little change from last year in the perceived impact of all other technologies, the number of respondents predicting that cloud computing would force significant business change more than doubled (from 21% in 2008 to 46% in 2009), making it the top disruptive technology, ahead of even operational risk modeling and mobile technologies.

Cloud computing is an emerging computing model in which processing, storage, networking and applications are accessed as services over networks -- public, via the Internet; or private, via intranets. The cloud model has the potential to cut the costs, complexity and headaches of technology. The research shows that interest in and awareness of cloud computing have risen dramatically and that a great opportunity therefore exists for service providers that can make cloud computing both economic and safe for Wall Street firms.

IT budgets were again under pressure with many firms having experienced cuts in the last year, but there was little change in the year-ahead outlook indicating that budget pressures were possibly leveling off. In 2008 31% of respondents predicted cuts in the year-ahead while 52% expected their IT budgets to remain the same or increase. Despite increased financial pressures in the last year the outlook remained much the same with 32% predicting cuts in 2010 and 50% expecting their IT budgets to remain the same or increase.

"The financial markets form what is termed a complex system which is made up of a vast number of participants, from individual traders to industry entities such as clearing houses, exchanges and central banks, each of them generating and consuming more and more data every day," commented Ian Hurst, general manager, IBM Financial Services Sector. "Firms need to capitalize on the latest technologies such as cloud computing to better manage all this data, operational risk modeling and analytics to assess it and turn it into market insight, and then mobile technologies to place it in the hands of the decision makers, wherever they are."

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