Yeah, totally. That’s the tradeoff. Leaving the cloud helps with speed and cost, but you end up with fragmentation—different exchanges, different setups, no shared backbone. Interop gets messy fast, especially across chains, matching engines, and data feeds. That’s where we're needing new protocols or intelligent routing layers that can span heterogeneous infrastructure and still guarantee ultra-low latency and reliability.
Security is a bigger risk than interoperability when it comes to leaving the cloud.
Many exchanges have suffered hacks already, even with the cloud security offerings by AWS and other providers. Exchanges running their own infrastructure further widens the attack vector.
In regard to cost, it doesn’t get any better by moving off the cloud as you opine, because the exchanges have to increase their head counts to be able to reliably manage and secure their infrastructure. Factor in the capital expenditure requirements for establishing the data centers and it’s all just too expensive in the short and medium term for any executive team to vouch for it.
Some of the cloud computing selling points were that teams don’t have to worry about infrastructure and security and that they could go to market faster and cheaply.
Cloud still seems the better option than individual exchange clouds from what I see.
Is there perhaps any study that you know of that argues in favor of exchanges running their own infrastructure?
Insightful write up.
Doesn’t crypto abandoning the cloud bring up interoperability issues if different exchanges have their own infrastructure?
Yeah, totally. That’s the tradeoff. Leaving the cloud helps with speed and cost, but you end up with fragmentation—different exchanges, different setups, no shared backbone. Interop gets messy fast, especially across chains, matching engines, and data feeds. That’s where we're needing new protocols or intelligent routing layers that can span heterogeneous infrastructure and still guarantee ultra-low latency and reliability.
Security is a bigger risk than interoperability when it comes to leaving the cloud.
Many exchanges have suffered hacks already, even with the cloud security offerings by AWS and other providers. Exchanges running their own infrastructure further widens the attack vector.
In regard to cost, it doesn’t get any better by moving off the cloud as you opine, because the exchanges have to increase their head counts to be able to reliably manage and secure their infrastructure. Factor in the capital expenditure requirements for establishing the data centers and it’s all just too expensive in the short and medium term for any executive team to vouch for it.
Some of the cloud computing selling points were that teams don’t have to worry about infrastructure and security and that they could go to market faster and cheaply.
Cloud still seems the better option than individual exchange clouds from what I see.
Is there perhaps any study that you know of that argues in favor of exchanges running their own infrastructure?