Sign up to receive 5 free days of our daily summary for tech news.

Read this article for free.

Already a subscriber? Log in here

Q&A
Enterprise Amazon Google Markets

Meet the Internet’s Newest Cloud Startup: Goldman Sachs?

Goldman Sachs is one of the world’s biggest investment banks, but it is arguably also a major technology company. About a third of the firm’s employees are engineers. With hundreds of thousands of cloud computing processors working on its behalf, Goldman crunches more data each day than many Internet companies.

Don Duet is co-head of Goldman’s technology division and has largely been responsible for developing and executing the firm’s cloud strategy. Mr. Duet also co-chairs the groups at Goldman that make decisions about investing in Internet, clean technology and renewable energy companies.

As investment banking profits shrink, the big players are turning toward the cloud as both a cost-cutting measure and a way to comply with tightening regulations that require them to supervise communications among traders. Goldman has been using an internal computing farm for a decade. JP Morgan said this year that it is now running 2,000 of its applications in a private cloud, and Morgan Stanley is reportedly considering a big push toward internal clouds as well. Mr. Duet says Goldman’s grand vision for the cloud is a day when computing infrastructure becomes so commoditized that it can be traded frictionlessly on an open market, like barrels of oil or pork bellies.

Last month, Goldman led a group of 14 financial institutions to invest $66 million in Symphony Communication Services Holdings, which in turn bought messaging startup Perzo. The intent of the project is to create a secure, cloud-based messaging service, and Goldman contributed the code from a system that it’s been using internally for several years. The new effort would connect the country’s major banks and possibly displace the $20,000-a-year terminals provided by Bloomberg that are ubiquitous in the financial world. Security is a key driver. Last year, Goldman and JP Morgan brought complaints that Bloomberg’s news operation had snooped on the company's terminal users.

What Is The Information?

Notebook b5103017ee163370a1667c9ce59ab0ef023875a17888105d26c185cadf31bb69

Daily news analysis

Every weeknight, we'll send you our reporters’ views on the day’s top tech news—distilled into one email.

Notes bb3aa5069205d702dda37fc71dc6f1c59df2310c4379304e9f1199f052af4884

Exclusive Articles

We broke it first. Receive original reporting, stories, and exclusives you won't read anywhere else from the largest newsroom in tech.

Conference calls c9e664e8b96ee347d3e92b8309938f268422b9db98cfabca5c826fbb75054b23

Conference calls

Go deep into areas like crypto and VC diversity—or get real-time analysis of breaking news—via conference calls with our reporters and other experts.

Events 499acedd16cffc41445edd76bfd302b2836c2a27419890f17130a6b10e2aa3df

Special Events

For no extra fee, subscribers get access to more than a dozen events yearly, from intimate dinners to larger gatherings with marquee speakers.

Access the best reporting on the tech industry read by tens of thousands of global executives.

Become a contributor

Share your views and find other subscribers by completing your profile. You’ll be listed in our contributor directory.

Org Charts

Access the only collection of tech company org charts. Our expanding database includes companies like Amazon, Snap, and Uber.

Slack community

Discuss topics and current events with our subscriber-only Slack group and share news about your company with other subscribers.

Share with your team

Subscribers can unlock any article and share it with friends and co-workers through a special share link.

Stay up to date on Silicon Valley

Sign up for Jessica Lessin’s (The Information’s CEO & Founder) free Saturday newsletter and also receive a complimentary week of our daily afternoon tech commentary email.

Already a subscriber? Log in here

Recent Articles

Enterprise Cloud

After IBM-Red Hat, Which Open-Source Companies Are Next?

By Kevin McLaughlin

Biotech

Scientists and Silicon Valley to Mingle at Breakthrough Prizes

By Sarah Kuranda, Aaron Tilley, and Nick Wingfield

Cybersecurity Amazon Cloud

Amazon’s Next Business: Keeping Elections Secure

By Kevin McLaughlin

Enterprise Google Cloud

Behind Google Cloud Chief’s Departure, Tensions With Execs

By Kevin McLaughlin and Jessica E. Lessin

A big part of what we see as the ultimate benefit of the cloud is that it’s no different than a market. If I want to have a lot of computing capacity in case something big happens but I want to be able to rent it out, having that exchange capability is a great thing for the world.