As detailed in the report co-authored by TABB's head of FinTech research Terry Roche and senior analyst Monica Summerville, there will continue to be a need to improve utilization of these hardware resources, so a Grid or a Grid-like solution will still be required. Firms will need to develop a more granular understanding of TCO for their computational services in order to be able to effectively evaluate alternatives, such as Cloud, in terms of return on investment.
"The majority of firms TABB spoke with for our report recognize the need to reinvest in on-premise Grid computing because certain computationally intensive workloads, such as credit valuation adjustment and liquidity analysis, are not suitable for migration to public Cloud", stated Monica Summerville. "The highly specialized latency and scheduling requirements associated with these types of workloads offer a poor fit with the business model of Cloud."
With regulatory requirements continuing to grow, TABB found firms still investing in on-premise compute capabilities, focusing on solutions offering flexibility, small footprints and reduced administration overhead. TABB also found a growing business case for less demanding Grid workloads migrating to hybrid or public Cloud. However, there is also a lack of clarity as to how to architect hybrid Grid solutions for Cloud and questions as to whether public Cloud's business model can provide a compute solution for significantly less than a firm's own Grid in all use cases.
"Getting the right mix of on- and off-premises solutions will be key in meeting today's business challenges and innovating for tomorrow and our outreach found that the majority of institutions plan to maintain or reinvest in their computational Grids for the short-to-medium term", stated Monica Summerville.
The report is now available for download .