Data mobility is the financial industry’s vitality. Data must move quickly and safely. The financial sector is battling with an ever-growing amount of data to manage regardless of whether it is for reasons related to trading or via the use of cybersecurity software that analyses data to find possible signs of fraud or non-compliance.
In the end, the financial industry’s dependence on data will have a direct and long-term impact in this security of the data centers business. Let’s take a review of the different methods Wall Street and the financial sector are dependent on data centers and the expansion of this connection.
Demand is fueled through electronic transactions.
The use of the financial sector’s the data center has been affected greatly by the shift towards electronic trading. It has facilitated access to data on financial markets which allows anyone who has the Internet connectivity to exchange in stocks. Trades are conducted all over the globe Data centers must meet the demands providing constant performance.
When Wall Street businesses adopted high-frequency trading (HFT) which is a complex type of computer-driven analysis that capitalizes on the smallest fluctuations of market activities, the significance of IT infrastructure increased. The traders use software to sort through information and execute automated changes based on the circumstances. It is possible to gain an edge in competition by observing developments in milliseconds prior to other traders. In the high-frequency world of rapid-paced trading, these short moments of time could have an enormous difference.
Proximity hosting is a type of colocation that permits trader to physically connected to the systems of IT where trades take place while benefiting from a variety of data flow. The growth of HFT and proximity colocation goes hand in hand with a huge increase in data traffic however, this trend has slowed off.
Data Centers Assist in Meeting Compliance Obligations
The banking industry, just like the medical field, has to comply with rules that govern handling of data as well as other procedures. In the month of March, financial institutions like banks were required to adhere to cybersecurity regulations through doing risk analyses and implementing security plans that take into account risk. In many instances this involves utilizing platforms that analyze and collect information before releasing alerts regarding possible threats.
Additionally diverse regulatory bodies deal with the goal of the financial sector to adopt further cybersecurity measures soon. To stay compliant banks should know about cybersecurity threats and the data breaches they can result in.
Cloud computing centers can collect security-related information, but they are able to assist in compliance in different ways. Cloud computing can collect information through logging, and later keep it for a specific duration. The place that the server is located is crucial as local regulations oblige that data be kept within the borders of the country.
Data centers also assist in access to data and classifying it to facilitate subsequent, easier sorting. Numerous facilities around the globe are able to replicate workloads in event of data loss, which can reduce the time needed to restore data following the loss. These characteristics when taken in combination, could will make compliance more easy as opposed to before data center technology was in place.
The Impact of 9/11 on the Data Center Landscape
The financial sector is a major part of New York accounts for more than 39% of total economic output. In Manhattan the data centers are in large part responsible for keeping up with financial sector demand. However, a variety of developments caused the data center industry to expand and expand with respect to the world of finance.
After the terrorist attacks of the 11th of September 2001 that destroyed the World Trade Center in Manhattan Financial services companies relocated their data centers to outside from New York City. In the beginning, many firms were situated at Manhattan as well as Brooklyn. But, after the events of September 11, 2001, bank officials advised businesses to move to a different area.
They did this in the in the name of “geographic diversity,” claiming that moving out of the city to a different location, like one located in New Jersey, would place the financial institutions in a safer position in the event of new attacks. This led to the creation of the wholesale data center industry located in Central New Jersey, which is still in operation today.
In the aftermath of Superstorm Sandy ravaged the East Coast in the late autumn of 2012 the data centers were moved similarly. The weather-related disasters created problems with data center facilities, especially when it was necessary to move IT equipment from the flood-prone areas of lower Manhattan.