- JPMorgan is upping its cloud capabilities with the help of AWS, Google Cloud, and Microsoft Azure.
- The bank plans to move as much as 50% of its apps and data to the cloud in 2022.
- CEO Jamie Dimon said the cloud has already helped the bank mitigate risk and fraud at a lower cost.
JPMorgan is doubling down on ambitions to expand its cloud capabilities.
The bank has plans to move as much as 50% of its applications and data to the cloud in 2022, Jamie Dimon, JPMorgan’s CEO, said during the bank’s fourth-quarter earnings call on Friday.
“This stuff is absolutely, totally valuable,” Dimon said of the technology.
Dimon cited work with Amazon Web Services, Google Cloud, and Microsoft Azure as part of the cloud strategy.
The bank has already recognized savings in how it manages fraud, cyber, and
via deploying “huge capabilities” in the cloud in those areas, he said.
And the potential use cases for the cloud don’t stop there.
“If you sat in this room and looked at the power of the cloud and big data on risk, fraud, marketing, capabilities, offers, customer satisfaction, dealing with errors and complaints, prospecting. It’s extraordinary,” Dimon added.
On the earnings call, Dimon said that JPMorgan had spent $2 billion on opening modernized data centers with cloud capabilities, the latest indication of the costs borne by the bank when spinning up its cloud tech.
The bank’s top executive has no intentions of slowing down investments into the tech.
“If we could spend $2 billion more and get to the cloud tomorrow, I would do that in a second,” he said.
Last April, Insider reported that JPMorgan was building out teams of engineers in the bank’s Columbus, Ohio hub for a new, cloud-based system to handle its $2.2 trillion in deposits. Just a few months later, in September, JPMorgan announced that it had partnered with British startup Thought Machine to deploy the cloud-native core deposit system.
There’s still more to come this year in terms of JPMorgan’s push into the cloud, Dimon said.
“There are certain applications and certain datasets already running on the private cloud, some are running on the public cloud, and some parts of the company are ahead of other parts of the company,” he said. “That’s a lot of work. To the extent we have opportunities to do more, we will do more, because we have extraordinary capability.”
A multi-provider, hybrid-cloud strategy
JPMorgan’s spends $12 billion annually on a tech budget overseen by CIO Lori Beer.
The bank hasn’t been shy about putting that significant pile of cash to work on cloud-related projects as it pursues a multi-provider and hybrid-cloud strategy and modernizes its tech stack.
In November, JPMorgan’s chief information officer of global technology infrastructure, George Sherman, told Insider that JPMorgan first began building its own private cloud in 2014 and began partnering with providers in 2016, relying on AWS, Google Cloud, and Microsoft Azure as well as its own on-premises data centers.
According to Sherman, the bank’s embrace of a hybrid-cloud approach reliant on multiple providers was driven both by a desire to avoid concentrating too heavily on one vendor and the sheer scale of the bank’s operations.
Sherman also said that he believes that within five years, Wall Street will be focused less on public-cloud tech questions and more on edge-computing, where data is analyzed closer to its point of collection.