How Big Tech Firms Help Asset Managers
An example of "innovator's dilemma" is how firms like Microsoft and Amazon took a chance and offered software services to their competitors and others.
Might these firms be threatening themselves by doing that? The answer turned out to be not really because there is such strong demand for their computer storage & software resources, including in the investment management business.
Asset Managers Tech (AMT), a trade group, is working on best practices for buy-side firms that are increasingly engaged on a cooperative basis with these technology providers . These are win, win situations. Asset managers can rent software and Cloud storage at a far less cost than developing it themselves. And technology firms have excess capacity. At the same time, AMT is encouraging ongoing questions about security of customer data and long term capacity.
For these arrangements to work, it is clearly necessary to establish industry best practices and to facilitate discussion about common next steps for these essential processing resources. There are also regulatory policy issues to assure meeting fiduciary responsibilities to investors that need to be discussed in a trade group setting.
AMT holds "roundtable" Webcast meetings for industry leaders seeking clarity and reasonable advocacy in this important segment of the asset management industry.
George Marootian, EVP of Technology at Natixis Investment Managers, is leading this AMT initiative on behalf of industry colleagues.
Our next meeting is set for 10:00 am ET on Wednesday, February 12th. Please sign up today as space is limited. Kindly contact Joe Sack of AMT at firstname.lastname@example.org or mobile 1-914-648-0088 to register for this meeting. We will send you a WebEx link to the 2/12 meeting upon hearing from you.
Joe Sack, President, Asset Managers Tech
Asset Managers Tech is a not for profit trade group incorporated under the laws of the Commonwealth of Massachusetts.