April 14, 2011, 5:44 PM — State Street Corporation says technology must evolve to meet the increasingly demanding needs of financial services, and within its own data centers is adopting new cloud-like technologies and placing a greater emphasis on Linux and open source.
State Street CIO Chris Perretta says the Boston-based financial services company is moving many of its workloads from high-end proprietary Unix servers to commodity Linux boxes, and is increasingly embracing virtualization and automation tools to create a cloud-like infrastructure.
The goal for State Street, which devotes 20% to 25% of its operating expenses to IT, is to create a more flexible infrastructure for providing application services and data access to clients, Perretta says.
The cost of hardware is not coming down fast enough to overcome State Street's growing need to buy new data center equipment, a "recipe for disaster," Perretta says in an interview. State Street released a report this week called "The Evolving Role of Technology in Financial Services."
While financial services companies are typically wary of public cloud services such as Amazon's EC2, they can try to replicate the same kind of flexible provisioning of resources in-house.
State Street has six major data centers in the United States, Europe and Asia, including three backup facilities. The company is building out its initial private cloud services from a disaster recovery facility in Massachusetts.