28 November 2014

Data Cloud Tech Trends

David Csiki - INDATA

6 | posts 13,737 | views 0 | comments

The Nexus of Applying Experience to Inefficiency

14 March 2013  |  2057 views  |  1

A recent survey found that it is more expensive to maintain legacy systems vs. current “state-of-the-art” systems.  No surprise there. Legacy systems usually require additional staff who are familiar with the “quirks” of the specific legacy systems in question. In addition, these individuals are also usually versed in a “work around” philosophy where, to their credit, they often build elaborate, manual workflows around the lack of automation and inadequacies of the legacy system.

As a general rule with regards to technology, legacy systems in whatever form they exist will ultimately be replaced.  It’s just a matter of time.  For buy-side investment management firms, the ongoing maintenance of legacy systems has another negative residual effect that is extremely significant: it ties up otherwise very intelligent people who often use their keen intellects to manage fundamentally inefficient processes.  The result is often a gross mismatch of skill sets, not to mention it is a complete waste of resources for the firm.  It goes without saying that “smart” people’s energy should be primarily focused on the firm’s organizational goals of managing investments, servicing clients, maintaining compliance and growing assets.

In our experience, replacing legacy systems not only has the positive effect of improving operational efficiency, enhancing compliance and reducing long term costs, it also has the positive effect of freeing up the time of smart people in operations, technology, compliance and trading to do what they do best.  The end result is most often a happier and more competitive organization.  Saving money is important, but having happy and productive employees is priceless.

TagsTrade executionPost-trade & ops

Comments: (1)

Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 15 March, 2013, 18:36

I can never forget that legacy systems will "ultimately be replaced" - after all, I've been hearing it so often for the past decade or two. For vendors planning major investments in products based on open systems just to replace legacy applications, here's my paraphrased version of the famous saying by John Maynard Keynes about how markets will eventually turn logical: "Companies can remain with legacy systems longer than open systems vendors can remain solvent". 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Latest posts from David

Widespread Adoption of Cloud-Based Technology on the Horizon

26 March 2014  |  2434 views  |  0  |  Recommends 0 TagsTrade executionPost-trade & ops

The Nexus of Applying Experience to Inefficiency

14 March 2013  |  2057 views  |  1  |  Recommends 0 TagsTrade executionPost-trade & ops

Switching OMS's - Not as Daunting as One Would First Think

25 February 2013  |  2395 views  |  0  |  Recommends 0

Increased Transparency: Byproduct of Improving Technology

31 January 2013  |  2287 views  |  0  |  Recommends 0 TagsRisk & regulationPost-trade & ops

Compliance: More Important than Ever in 2013

22 January 2013  |  2197 views  |  0  |  Recommends 0 TagsRisk & regulation

David Csiki

job title

Managing Director

company name


member since



San Diego

Summary profile See full profile »
In the role of managing director, Dave maintains a constant pulse on the changing technology and ...

David's expertise

What David reads
David writes about
David's blog archive
March 2014 (1)2013 (4)2012 (1)

Who is commenting on David's posts