Nasdaq’s Bullish Innovation for a Cloud-Native Future

In 1971, Nasdaq splashed onto the trading scene as the world’s first electronic exchange

In the years that have followed, Nasdaq has become a symbol of innovation — a reputation that’s attracted the world’s four largest market capitalization companies, all of which are Nasdaq-listed.

Today, the digital disruptor continues its legacy by shifting to the cloud and bringing data to each of its thriving business units, which range from market technology and market services, to information services and specialized SaaS products that support its listed companies. To accelerate innovation and success, Nasdaq relies on the Splunk platform to turn data into action throughout every step of its cloud transformation journey.

A Cloud Trendsetter

Nasdaq began its cloud transformation in the 2000s, long before most organizations were considering the merits of cloud computing. “Thanks to forward-thinking pioneers and a couple cloud-native acquisitions, we were introduced to the cloud over 10 years ago,” says Brad Peterson, executive vice president and chief technology and chief information officer at Nasdaq. “We’ve matured with the cloud, and it’s become a core part of our strategy going forward.”

As with any transformation, Nasdaq’s cloud journey required a new mindset. “The move to cloud is not just a lift and shift or a technical problem to be solved, it’s an overall change in business,” says Peterson. “So when we decided to change the way we build products and move to a cloud and SaaS model, we kicked off a major cultural initiative. This involved training, updating processes across the business and enlisting the help of strategic partners like Splunk.”

While Nasdaq already relied on the Splunk platform for IT operations and security, the enterprise turned to Splunk to help pave the way for a successful cloud journey — while still maintaining visibility into its evolving hybrid environment.

The Model for Faster Innovation

As its business changed, Nasdaq has had to rethink some of its foundational processes, shifting to a DevOps operating model to deliver innovations like its Nasdaq Cloud Data Service, which provides customers with real-time exchange data through a suite of APIs.

“By building a cloud- and SaaS-based offering, we take advantage of all the innovation and investment that’s going on in the modern cloud infrastructure — while also understanding the usage of our product almost immediately,” says Peterson.

“Splunk is a strategic partner in our cloud journey,” Peterson continues. “The Splunk platform is a key part of understanding what's going on with our customers and how they use our products, so we can get innovation into their hands sooner."

When COVID-19 hit, the ability to see, understand and act on real-time customer data became even more critical. “COVID-19 created incredible engagement in our markets — both in the volume of activity and the volatility. We need to know what’s going on in our environment minute-by-minute even while 98% of our workforce is now remote,” Peterson says. “Splunk’s most strategic use is giving us a real-time view of what’s going on in our markets during periods of historic volume.”

Excelling in a Hybrid World

Yet not everyone is as advanced in their cloud journey as Nasdaq — which creates additional complexity when having to deliver products and services that span both on-premises and cloud environments.

“Customers are moving through their cloud journey at different paces, so having the ability to live in that hybrid world is essential,” says Peterson. “That’s where Splunk comes in. Whether it’s an on-prem, hybrid or cloud environment, the Splunk platform supports every type of infrastructure, data type and data structure to make disparate data available, queryable and actionable.”

“Business leaders want to know what’s happening now. It’s not just about handling massive amounts of data, it’s also about having streaming data capabilities for real-time insights,” Peterson says. With these insights, leaders at Nasdaq continue to shape product strategies, adapt business models and deliver innovative solutions that redefine the market ecosystems of the future.

“We will never have a homogenous set of infrastructure, applications and operating systems,” says Peterson. “So, we need a solution that allows us to do what we do best — build applications specific to capital markets, market data, trading and post-trade data — while living in a heterogeneous environment. That’s Splunk’s expertise.”