SunGard Trading & Risk Systems has announced that it is planning to integrate all six of its trading and risk management systems onto a single platform and graphical user interfaces (GUIs) for the first time, due to customer pressure.
Historically, the acquisition-hungry IT firm has always bought IT companies and start-ups with a clear strategy that they continue to be run independently, as bought, apart from any further development. This strategy, to run the products as separate entities, was followed even if it meant SunGard was promoting competing products, which it often was. For credit risk management, for example, it supported three different solutions.
Rebranded SunGard Adaptiv, the integrated systems will mean that flagship products Panorama and Credient, which were built in-house, and Opus, Infinity, Collateral and RSM can effectively be mixed and matched. For example, the Limit Manager function in trading and risk management solution Opus is a relatively small module and not as sophisticated as the Credient product, which has been specifically designed to manage trading limits. In the past, an Opus user wanting to upgrade would have had to buy Credient separately, creating yet another silo or standalone product. Now, however, Credient can be added as a larger component of Opus.
Steven Husk, president of SunGard Trading & Risk Systems, says: “The change in strategy has been prompted by our clients who want more than just acquisitions. They believe there should be a perceivable value in the acquisition – that they should be able to leverage their investment in that product or company. The new strategy will also help banks to consolidate their trading and risk management systems onto a single solution.”
He says that the move will mean that all Adaptiv clients can upgrade their system more cost-effectively by adding new functionality from previously competitive products. The development teams of each of the silos will be integrated to work across all products. While SunGard Trading & Risk customers effectively also became Adaptiv customers at the end of January, none have yet begun upgrading across modules.
SunGard says it is also planning to make the availability of all its products known via an application service provider. “Our own market research has shown that banks are becoming more interested in buying a service rather than a product or software licence,” says Mr Husk. “With several significant outsourcing deals recently signed, it is clear that when financial institutions seek to reduce costs, outsourcing is one of the first options they look at, and SunGard wants to be a player in that market.”
