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Cloud doesn't mean the end of corporate data centres, says head of LSE IT

Latency demands remain one of barriers to cloud use

The growth in use of cloud services does mean not the end of the corporate data centre according to London Stock Exchange's head of technology services.

Speaking as part of a panel at the Cloud World Forum Adeel Saeed said that although there are applications in parts of LSE's business that can be moved into a public cloud, the requirements of the stock exchange mean that diminishing data centre footprint of some industries will not be universally felt.

According to Saeed, latency requirements in the financial sector are one of the factors which mean that investment in on-premises infrastructure will continue to increase for LSE.

"The data centre space for us as an organisation is growing because the business is growing. There are many things that can be offloaded into a public cloud, but there are many things which need to stay within a private cloud, and many things that will not even move to the cloud due to latency, or services that cannot be virtualised."

He added that creating a standardised approach for cloud services may not be suitable for businesses which are highly differentiated: "For us infrastructure as a service as a whole is not lucrative in the data centre. Building shared infrastructure across multiple siloes when you are an entity with different business lines becomes too convoluted if you start picking out entities and moving them to the cloud."

While there some areas which will be moved to public cloud, he does not see all organisations outsourcing all of their data centre requirements, he said, with regulations within the finance industry creating difficulties to externalise applications and functions.

However, this is not a view shared in all industries, according to Andrew Hatton, head of IT at Greenpeace UK.

"Probably what we will see over the next few years is a lot of on premise data centres getting a lot smaller as they begin to offload mature applications into the cloud. In a few years there will not be anyone running email in their own data centre."

"Overall the trend is towards data centres getting much smaller and the cloud growing, and even niche applications will end up in the cloud," he said.

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