Fueled by technology such as Web services, grid computing will grow 60% in the next five years in the financial services industry, according to a new report by The Tabb Group.
The Boston-based financial markets consultancy said grid computing will be a major force in every major financial markets firm's infrastructure.
"… The expanding technology heterogeneity, drive toward services, business process outsourcing, Web services and continued cost pressures will ultimately force many firms to make fairly radical changes in the way they manage their technology," report author Larry Tabb said. "It may be painful, but it's an unavoidable reality every CXO-level executive will simply need to contend with."
Tabb said that total grid software and services spending in the financial markets will be about $59 million this year, but will rise over the next five years at a compound annual rate exceeding 60%, to about $680 million.
"There is tremendous opportunity in both data and service grids as firms strive to better utilize their existing data, manage their heterogeneous infrastructure, leveraging component-based Wed services technology to extend and implement services-based architecture," Tabb said.