As financial services firms find flaws with existing EDM data models, a new concept of distributed data management is taking hold, leveraging electronic trading technologies.

Boston, MA, August 27, 2008 – A new report from Aite Group, LLC introduces the concept of distributed data management (DDM), and analyzes the benefits of this data model compared to enterprise data management (EDM) or centralized data management (CDM). The report provides examples of how capital markets firms apply distributed caches, complex event processing engines, reference data solutions, grid computing, and messaging infrastructures to distributed data architectures.

While the concept of achieving a golden copy through consolidating reference data under a single umbrella has been considered an ideal scenario, many financial institutions have found flaws in the execution of such centralized data models: Such models generally contribute to latency, create a single point of failure, experience significant integration pain, and require like data be used on disparate systems. As such, firms now look to emerging technology to provide a single-source, multi-subscriber model spread over the enterprise. As the breadth and depth of data continues to grow, that flexibility will enable firms to support existing integration efforts in a more efficient method, add new systems into the data architecture without creating direct data dependencies, and create a fabric that allows the firm to create and destroy data marts for specific needs.

"While Aite Group has found that most firms considering distributed data models are in early stages of the process, vendors admit that customers are increasingly exploring and building a case for the model," says Adam Honoré, senior analyst with Aite Group and author of this report. "Centralized data models limit the agility of a firm to deploy new data capabilities that support emerging real-time needs. In time, Aite Group expects DDM to find itself in the acronym lexicon between CDM and EDM."

This 20-page Impact Note contains nine figures and one table. Clients of Aite Group's Institutional Securities & Investments service can download the report by clicking on the icon to the right.

Related Aite Group Research:

• The Data Utility Knife: CEP Cuts Into Enterprise Architecture
• Reconciliation Systems Vendor Comparison: High Volumes and Higher Efficiency
• Navigating the Rapids of Downstream Data Connectivity
• CEP Vendor Landscape: Profiles of Top Event Processing Vendors in the Capital Markets
• Confusion about Event Processing (CEP): Overview of EP in the Capital Markets

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