30 Mar Financial News | Goldman-backed startup aims to finally get finance into the cloud
By: Anna Irrera | Financial News | Posted: 29 March 2016
In the past few years, Goldman Sachs has been very active in making investments in young technology companies. Banks make many of these investments to learn about important areas of technology, including cloud computing.
In October Goldman Sachs joined a $45 million investment round in Silicon Valley-based cloud computing startup Bracket Computing. Investors also included Fidelity Management, Andreessen Horowitz, Allegis Partners, GE and Qualcomm.
Founded in 2011, Bracket seeks to allay security worries about cloud technology, one of the reasons why financial institutions have been slower to move to the cloud than other industries. Bracket has developed software, called the Computing Cell, that essentially wraps an additional security layer around both public and private clouds. This additional layer encrypts the data going through it and is controlled by the user.
This means that banks and other large firms can take advantage of the benefits of moving their applications to public cloud providers such as Amazon Web Services, while applying their own advanced security controls. Bracket’s technology is used by Goldman Sachs and other financial firms including the Blackstone Group.
Tom Gillis, the chief executive of Bracket, said: “You get the physical controls that Amazon and Google put in place, which are world-class because they are so big, while we put in place logical controls. That combination is very strong.”
Gillis believes Bracket’s technology will lead more businesses to use the cloud and eventually to a transformation of data centres. As more and more large companies move their applications onto public clouds operated by large technology firms, their own data centres will shrink and so will their demand for hardware, Gillis believes.
Gillis said: “This is the blueprint of how data centres will be built in the future. In the new world where the physical comes from Amazon and other large providers, implications on the wider IT industry will be profound. The landscape for anyone who sells boxes [hardware] is going to change.”
Irrera, Anna. “Goldman-backed startup aims to finally get finance into the cloud.” Financial News. 29 March 2016. Web. 30 March 2016.