Trade data latency monitoring tools: another federated data source

Long time CMP writer and veteran technology watcher Penny Crosman recently blogged about a flood of new start-ups developing solutions aimed at reducing data latency for financial institutions. For example, one provider offers “software that sits on network switch mirror ports and monitors the traffic going by, combined with correlation algorithms that, the company says, can pinpoint latency to the box level.”

While such a tool may pinpoint latency to box level, component-based management only takes you so far. The next step absolutely must be to put this information in a business context - to understand the effect of any single box’s latency on IT’s ability to deliver business services. This is important because financial institutions often have tens of thousands of servers (among other components) in their enterprise, which means potentially tens of thousands of latency alerts. Without business context, the question becomes, ‘which latent box do you fix first?’

One way would be to incorporate Business Service Management (BSM) solutions to allow IT operations to make this determination quickly and easily. BSM manages IT from a holistic, service perspective, and dynamically links the underlying IT components according to the business service they provide – so, for example, IT operations can place the latency at a box level in the context of business impact. Since BSM platforms can integrate to a range of heterogeneous IT management tools from performance monitoring to service desks, it may prove more useful than trade data latency monitoring tools.

In many ways because of their reliance on technology, financial services institutions were among the early adopters of BSM technology in the late 1990s. Today, BSM has evolved to include a range of modular components to include discovery, service level management (SLM) and the configuration management database (CMDB) or as ITIL perhaps more aptly calls it a configuration management system.

-- Jim