As a follow-up to our previous blog, “Can the White Walker Ghouls at Bloomberg Be Stopped”? We outline NET(net)’s Top 5 reasons why we believe the Bloomberg empire are ‘the walking dead’ and will soon fall.
Since 1982, Bloomberg has enjoyed a virtual monopoly on Wall Street, with a stranglehold on the information and technology needed to be a viable securities buyer. That virtual monopoly is coming to an end, but the folks at Bloomberg have not realized it yet. This is why we are reaching out to you folks who spend the massive amounts of money to pay for those Bloomberg devices and services, which are now outrageously overpriced as a matter of market certainty. Below are the Top 5 reasons why.
Top 5 Reasons why the Bloomberg Empire Will Fall1) Bloomberg Anywhere
Having a Bloomberg Terminal tied to your desktop is not going to cut it in the post-pandemic era, even if that iconic dual-screen beauty is the #1 status symbol of the financial services industry. With more workers choosing to ‘Work from Anywhere’ (WFA) in the post-pandemic world, Bloomberg Anywhere (the virtual terminal) is a necessity. However, that option has also killed the biggest status symbol there is to a trader, which says you are important enough for your company to pay $24,000 per year to have you on a machine that is quite literally tied to the beating heart of Wall Street. Now that traders are ‘on’ Bloomberg terminals without the physical hardware, the status symbol of the terminal is not as iconic as it once was.2) Instant Bloomberg (IB)
Hands Down; the biggest demand for traders claiming to need Bloomberg Terminals is the need to have access to its chat platform, Instant Bloomberg (IB), which is embedded with security and compliance features that makes the tracking and contracting of transaction arrangements as easy as sending instant messages. Many traders were able to justify the entire $24,000 annual fee, just simply by needing access to ‘the club’. But with the ability to license IB separately at only $10/user/month (representing a 99.5% discount on the demographic of users who only need the chat function), you can train your membership for only ½% of the original costs. Bloomberg had to unbundle its chat feature due to mounting competitive pressures from well-funded alternatives that were disrupting the ubiquity of the Bloomberg “social” network and generating a certain level of market acceptance; most notably, Symphony (backed by Goldman Sachs and JP Morgan among other notables).3) Bloomberg News
The age of embedded Bloomberg News reporters, ‘breaking’ a story, and then sharing the details of their findings with Bloomberg Terminal users before those they would run on Bloomberg News, is over. With the death of ‘the scoop’ comes with it the death of the Bloomberg Terminal being the tool needed for first mover market advantage. Noteworthy news is being broken directly now on sources such as Twitter, and as a result, the entire world knows about market-moving events at the same time. The inexorable link between Bloomberg News and the Bloomberg Terminal once carried with it a value proposition so strong that no serious trader could risk being without it, and that is simply not the case anymore.4) Specialized Sources
5) The Role of Artificial Intelligence (AI)
AI is shaping the future of stock trading. Using AI, robo-advisers analyze millions of data points and execute trades at the optimal price, analysts forecast markets with greater accuracy and trading firms efficiently mitigate risk to provide for higher returns. When Wall Street statisticians realized they could apply AI to many aspects of , including investment trading applications, they could effectively crunch millions upon millions of data points in real time, capturing information that current statistical models could not (putting the very need for human traders at risk; and with it, lessen the number of Bloomberg Terminals needed). In today’s modern world, trading decisions are increasingly left to highly sophisticated software agents that are expertly tuned to discover marginal advantages that can be exploited in real time.
No one we know is shedding a tear for Bloomberg. In fact, most clients are rejoicing at the thought of being able to cut costs on Bloomberg, as for years they have tried and failed to do so.
For as many years as NET(net) can remember, our clients have been frustrated with the costs of Bloomberg, and unable to reduce those costs despite a considerable focus on this inescapable legacy expense. To those institutions, we tell you now that the code to cost optimizing your Bloomberg exposure has been revealed, and we can help you reduce cost from 30-93% depending on your situation.
Contact us today for more details.
Founded in 2002, NET(net) is the world’s leading IT Investment Optimization firm, helping clients find, get and keep more economic and strategic value. With over 2,500 clients around the world in nearly all industries and geographies, and with the experience of over 25,000 field engagements with over 250 technology suppliers in XaaS, Cloud, Hardware, Software, Services, Healthcare, Outsourcing, Infrastructure, Telecommunications, and other areas of IT spend, resulting in incremental client captured value in excess of $250 billion since 2002. NET(net) has the expertise you need, the experience you want, and the performance you demand. Contact us today at email@example.com, visit us online at www.netnetweb.com, or call us at +1-866-2-NET-net to see if we can help you capture more value in your IT investments, agreements, and relationships.
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