There’s a clear need for a latency standard that can be applied globally across financial institutions. But that’s just one step. The real challenge emerges when you ask why this standard is necessary, and what it means for the future success of your business.
Latency is key to your success because if it isn’t perfectly calibrated, it’ll cost you. According to a study by the Tabb Group, if your infrastructure allows even 5ms of lag, you could lose an astounding $4m per millisecond across transactions.*
The reality is that the demand on your digital infrastructure has never been higher. We live in a world of high-speed financial trading. Data needs to be processed, analyzed, and transmitted at lightning speeds to meet the global, mobile, and 24/7 demands for instantaneous transactions and transfers.
Moreover, when positions change in an instant, latency isn’t just a matter of efficiency. It’s a matter of profitability. Which means that your infrastructure must be up to task if your institution is to remain viable over the coming years.
That’s why it’s vital to have a next-gen digital infrastructure architecture that’s robust and reliable. Joe Skorupa, VP Distinguished Analyst at Gartner Data Centre Convergence, recently commented*, “I have known major financial organizations make multi-million dollar investments only to rip-and-replace them the very next day if a technology comes along that improves their competitive edge.
However, the network hasn’t really changed in the last few decades because network folk are conservative. The reasons are quite clear: if a server in a data center fails, your application goes down; but if your network goes down your entire data center goes down.”
Skorupa highlights the latency issue right here. In order to benefit from super-speed transactions, and make the most of your digital transformation, you need to equivalize latency across your entire network. This involves taking an in-depth look at your existing physical infrastructure, and determining where change is required.
Upgrading and consolidating your data centre infrastructure can also help to mitigate risk, and future-proof the business, as this blog post explains [http://panduitblog.com/2019/04/29/datacenter/consolidation-the-pros-and-cons-of-putting-your-eggs-in-one-basket/].
As a trusted infrastructure partner, Panduit can help you tackle your latency issues, and ensure the right networking technologies are underpinning your financial services.
*Source: https://datacentrenews.eu/story/opinion-automating-the-data-center-with-ibn, October 2018
*Source: The Value of a Millisecond: Finding the Optimal Speed of a Trading Infrastructure, April 2008