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

Video Conference Call RSVP: The Information's 2020 Predictions
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?

Notes c5deeda06ab4ba3bb64e208f234bfd828cdb7031f4b8d9ef5ffe24616d188b97

Exclusive Articles

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

Notebook 6c83b3311db49a8adebea2e7fe2364564e90295556b8e983aea7986068e1a47c

Daily news analysis

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

Conference calls 31d2645b356d3bb7470146f8d53ea066d45f6cb5d19dd7b6b299b046c8fac7c0

Conference calls

Get access to our reporters and other top executives with monthly deep-dive calls into topics like startups and autonomous vehicles.

Events ed23353632f8b00a54b6b229ac78d6aa5e78755fa35c00eb4d0e87d72c711c4f

Special Events

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

What else is included in my subscription?

Become a contributor

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

Slack community

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

Annual Subscriber only benefits:

Org Charts

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

Crypto Newsletter

Our experts investigate the latest in the crypto world to keep you in-the-know about the movements of digital currencies.

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