'The world is getting more advanced, but the economy is going backwards.'
Microsoft Corp's decision to buy a 4% stake, worth about $2 billion in the London Stock Exchange (LSEG) appears not to have been welcomed by regulators.
This is the concern of regulators about the continued dependence of financial firms on limited cloud providers, which can cause potential disruption if not managed properly.
Nevertheless, LSEG group chief executive David Schwimmer described the deal as 'meaningful' to increase revenue by 2025 by selling existing products through Microsoft to more customers.
Schwimmer added that the long-term agreement has been drawn up for a year and customers will see results in the next 18 to 24 months.
Part of the agreement will see Microsoft offer cloud services to LSEG with future plans to work together to build cloud trading potential.
In the meantime, other technology giants are also actively establishing collaborations with financial institutions in empowering both industries despite opposition from regulators.
Among them, Alphabet Inc's Google invested $1 billion in CME Group of the United States (US) to move its derivatives exchange trading system to the cloud while Amazon also did the same with Nasdaq through a multi-year agreement.
In fact, the European Union (EU) has recently approved the introduction of legislation that will protect the security of cloud providers and financial services with Britain also doing the same.
