Bad timing: Nasdaq reconsiders AWS-based FinQloud service

Nasdaq is rethinking FinQloud, an Amazon(s amzn) Web Services–based product that lets financial services firms store and manage their data in the public cloud, according to the Financial Times (paywall).

According to the FT report, the service failed to gain traction. Following the departures of several Nasdaq OMX officials, it may be shuttered or rethought. The story did not cite any technology problems with the service.

When FinQloud debuted in September 2012, my colleague Derrick Harris described it as:

“a regulatory data retention product called Regulatory Records Retention, or R3, and an on-demand analysis tool for trade data called Self-Service Reporting, or SSR. Given the seemingly close partnership between AWS and Nasdaq, FinQloud looks like another step in AWS’s quest to prove itself ready for enterprise workloads and might suggest more such partnerships to come.”

If FinQloud is nixed or scaled back, it would be a blow to Nasdaq, which wanted to show it could use inexpensive cloud services in a manner that met all compliance and regulatory hurdles. It could also ding Amazon’s enterprise push, which will likely be a focal point of the AWS Summit in San Francisco on Wednesday. After all, FinQloud is one of AWS’s big enterprise case studies.

Amazon blazed the trail for public cloud services starting 8 years ago, but it’s seeing increased competition from big, well-financed public cloud efforts from Microsoft(s msft) and Google(s goog). In fact all three of those giants are hosting cloud-related events in San Francisco this week.

I’ve reached out to Nasdaq and Amazon for comment and will update this when they respond. In a statement to the FT, Nasdaq said:

“We are always looking at growth opportunities with Amazon Web Services and ways to continue to leverage our cloud technology offering for the financial services industry.”

This news follows the unexpected departure in November of Eric Noll, former VP of transaction services. Noll is now CEO of ConvergEx.

Check out the Structure Data 2013 video below, in which Nasdaq OMX SVP of global technology services Ann Neidenbach talks about FinQloud’s use of public cloud.