Today, Google Cloud and The CME Group announced a 10-year contract to migrate CME’s futures and options markets to the cloud. A $1 billion investment from Google in CME is one of the deal’s components. Google, on the other hand, refused to specify how much the entire agreement was worth. This isn’t your typical transaction, says Philip Moyer, VP of strategic industries at Google Cloud, where Google assists the customer in moving workloads to the cloud.
“Rather, this is a demonstration by Google and CME that we’re truly dedicated to the long-term journey required to bring the most difficult portions of the financial services business to the cloud,” Moyer explained. He claims that the sale is complicated since CME has the most stringent security, latency, redundancy, and recovery criteria. The firms aren’t disclosing how the arrangement is structured regarding costs. Still, the idea is to roll it out in stages, starting with the simplest workloads with the shortest latency needs and then moving on to analytic data tooling.
Non-voting shares are included in the investment. There are no board seats available, and the CME board is free to use the funds as it sees fit. However, according to Moyer, the investment is intended to demonstrate that Google is committed to the relationship’s long-term success.