And all these firms need to do is agree to entrust their entire back-end IT setup to the Vampire Squid to access what Amazon is touting as one of the fastest and most useful back-end systems available to Wall Street firms looking to transition on to the cloud.
The new product - the result of a two-year collaboration with Amazon - will allow buy-side and sell-side firms to access all of Goldman's tools for quickly analyzing market data while enabling clients to set up high-speed trading strategies. Instead of simply relying on Goldman for prime brokerage services, hedge funds could soon outsource most of their IT setup to Wall Street's most powerful investment bank, with a critical assist from Amazon.
CNBC said the collaboration is in line with Goldman's attempt to use technology to better serve clients of the firm's markets division.
"Clients of the firm will get access to our decades of experience and data aggregation that should enable them to enhance their business decisions, both from a speed and efficiency perspective," Solomon told CNBC last week in a phone interview. "We think that adds to our position as a leader in the marketplace."
The new service, called GS Financial Cloud for Data with Amazon Web Services, will purportedly allow buy side firms to save time by allowing developers to focus on what matters - making sure trades are filed and filled as quickly as possible, rather than wasting time wrangling data sets and leaning on a patchwork of legacy software to analyze said data. It will also "lower the barriers to entry" for firms to use advanced quantitative trading techniques, Goldman said.
To be sure, using Goldman's IT platform will also help the Vampire Squid monitor the activities of clients, granting Goldman the transparency to avoid any overlevered time bombs like Archegos.