State Street, the influential Boston-based custodian bank with over $23 trillion in custodial assets, is in the midst of a project that remaps the routes to a custom-built data warehouse. The firm will be able to transport real-time, proprietary market analysis to clients, who in turn will be invited to shift their accounting, security and database systems onto State Street’s private cloud.
This initiative is massively expensive-estimated at $100 million a year for three years-but Jay Hooley, now the firm’s chairman and CEO, projects the bank eventually will reap $575 million to $625 million in cost savings by automating tasks such as software development. The private cloud also promises a new revenue stream from clients that choose to park their data and back-office applications on the network, culling them as needed on an on-demand basis.
The project, a year away from completion, it being closely watched, not only because of State Street’s influence in financial services as a major custodian bank, but because of the general direction it may provide as to the way big data can be turned into a revenue generator. For full article, click here.