Google Cloud 10-year partnership sign with CME Group
The cloud infrastructure has been supporting companies with digital development facilities around the globe. Still, there are tons of customers out of the cloud map pool. To get them integrated with a native cloud platform, company thresholds are being optimized as we speak.
Google, on the other hand, is handling the same measures on a whole different scale. Google Cloud, Amazon Cloud, Microsoft Azure are prominent names shining their leadership roles throughout the sector.
With its cloud computing network, Google recently signed a 10-year partnership with business solution provider CME Group. The CME group developed an equity investment of $1 billion in a series of non-voting convertible preferred stock for Google Cloud. CME Group's Chairman and CEO Terry Duffy said, "Through this long-term partnership with Google Cloud, CME Group will transform derivatives markets through technology, expanding access and creating efficiencies for all market participants."
In early 2022, Google plans to migrate CME's infrastructure and market to their native cloud platform. A 10-year cloud migration deal will empower CME to have more market cap, which is a bonus. The primary goal for CME is to acquire more customers and make their services affordable. CME is a Chicago based financial organisation with years of proven track record.
And as for the scalability of Google, the company itself has strings to many businesses. CME Group Inc is the world's largest financial derivatives exchange specialising in interest rate, metals, stock exchange, agricultural products, crypto, and many more.
CME and Google planned to tackle upcoming challenges regarding cloud infrastructure, and the whole technology platform seems pretty close for cloud deployment.
The cloud deployment was announced on November 4 2021, as the "10-year strategic partnership to accelerate CME Group's move to the cloud." Migrating technology will expand access using Google Cloud's secure and fast global network, enabling CME to scale its operation. Target increases market participation, onboard new users, and optimise every party's costs by keeping services affordable. Real-time data and analytic is a demanding process itself doesn't matter how simple it sounds. On-demand information and toolkits will also be implemented for risk management, algorithm and model development.
Two companies working together will become a user-centric platform with streamlined operation and upgraded IT infrastructure. Some technologies still work, but there is a better version of them. It doesn't make sense to acquire them as they may cost a fortune. But it proves a good point in the long run.
And to sustain that kind of tech power, a tiny push from Google is all that was needed. As the company heavily dominates their financial markets ecosystem, adopting a cloud network will enhance its cybersecurity protection on a massive scale.
Googles $1 billion non-voting preferred stock gives the company an ownership state rather than being a stockholder, which will undoubtedly contribute towards future decisions of the company at crucial moments. Google's parent company Alphabet Inc. is the worlds 5th largest valuable company by market cap, and though it's a tiny investment from that point of view, the scalability is pretty significant.
Google Cloud CEO Thomas Kurian said, "Bringing together CME Group's best-in-class financial talent with Google Cloud's deep engineering expertise will help accelerate technological innovation in capital markets infrastructure."
Duffy appointed Ken Vroman as the new Chief Transformation Officer at the CME Group to support the gesture. Expanded access and promise to delivery is the new motto for the company as being powered by Google will undoubtedly be gaining more attention. Google and CME's vision of working together was long due, and we can finally see that happening. Cloud investment of tech giants is giving birth to mass sectors, creating opportunities for people to work.