State Street Announces Strategic Cloud and Infrastructure Solution Providers in Connection with its Multi-Year Technology Transformation Journey

Rhea-AI Summary

State Street Corporation (NYSE: STT) has selected Amazon Web Services (AWS) and expanded its relationship with Microsoft for cloud services as part of a multi-year technology transformation journey. This initiative will consolidate State Street's data centers into an optimized footprint, modernizing infrastructure with a hybrid cloud model. The shift aims to improve client experiences and streamline operations. State Street plans to transition its North American data centers to AWS while continuing operations during the transition. The transformation seeks to enhance resiliency and accelerate product innovation.

Positive

• Engaging AWS and expanding Microsoft partnership enhances cloud capabilities.
• Transitioning to a hybrid cloud model improves agility, performance, and scalability.
• Consolidation of data centers will optimize operational efficiency.

Negative

• Potential risks associated with the transition to AWS and data center consolidation.

Selects Amazon Web Services as strategic provider for cloud services and data centers and expands existing strategic relationship with Microsoft for cloud services

BOSTON--(BUSINESS WIRE)-- State Street Corporation (NYSE: STT) announced today that it has engaged both Amazon Web Services (AWS) and Microsoft as strategic providers of cloud and infrastructure solutions in connection with its multi-year technology transformation journey. State Street is consolidating its current network of segregated data center facilities to a more optimized data center footprint with fit-for-purpose designed and managed facilities.

Through this transformation, State Street will modernize and standardize its technology infrastructure, leveraging automation and a combination of private cloud and public cloud capabilities. This hybrid and hyperconverged model combines all the elements of a traditional data center (storage, compute, networking and management) and will allow State Street to host workloads across private or public environments to optimize agility, performance, and scalability. This model will enable accelerated migration and modernization of applications, with the flexibility to accommodate strategic integrations.

As part of its ongoing technology transformation journey, State Street’s focus on modernization through the facility, infrastructure, and application stack will increase resiliency, enable rapid business product innovation, and deliver enhanced customer experiences. To advance its strategy and accelerate its technology transformation, State Street has entered into strategic engagements with leading cloud providers.

State Street selected AWS as one of its strategic cloud providers and plans to transition its two core North American data centers to AWS, while also maintaining operations in these data centers for a period of time as its technology transformation journey continues to evolve. The data center transition provides a path for State Street to rapidly modernize the IT infrastructure layers that a pure public cloud strategy does not address.

Building on the successful implementation and use of the Microsoft® Azure cloud, previously announced in December 2020, State Street will expand its use of Azure as a platform for business applications. State Street will further leverage the Microsoft Azure platform across the enterprise to augment its technology infrastructure, standardize platforms and accelerate technology development.

Architecting and implementing a highly resilient, flexible data center and cloud architecture is central to State Street’s strategy. The AWS and Azure cloud architectures will allow clients to manage and access data in real-time across State Street tools and third-party services so that they can streamline their investment processes, while accelerating decision making.

“Our objective is to continually enhance our client experience and technology solutions while driving efficiency and productivity across our organization,” said Brian Franz, chief information officer of State Street Corporation. “By standardizing and simplifying our technology operating model, we will be able to more quickly deploy client environments and launch new products and services, while continuing to enhance the resiliency of our technology environment and our business operations.”

About State Street Corporation

State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $36.7 trillion in assets under custody and/or administration and $3.5 trillion* in assets under management as of December 31, 2022. State Street operates globally in more than 100 geographic markets and employs approximately 42,000 worldwide. For more information, visit State Street's website at www.statestreet.com.

*Assets under management as of December 31, 2022 includes approximately $59 billion of assets with respect to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

Forward Looking Statements

This News Release contains forward-looking statements within the meaning of United States securities laws, including, without limitation, statements about our goals and expectations regarding our multi-year technology transformation journey, including our engagement of both Amazon Web Services and Microsoft as strategic providers of cloud and infrastructure solutions, as well as regarding other aspects of our business, operations and strategies and of the technology, client and market environment. Forward-looking statements are often, but not always, identified by such forward-looking terminology as “will,” "journey," ‘plan,” "path," “strategy,” “objective,” “intend,” “expect,” “priority,” “believe,” “anticipate,” “seek,” “may,” and “goal,” or similar statements or variations of such terms. These statements are not guarantees of future performance, are inherently uncertain, are based on current assumptions that are difficult to predict and involve a number of risks and uncertainties. Therefore, actual outcomes and results may differ materially from what is expressed in those statements, and those statements should not be relied upon as representing our expectations or beliefs as of any time subsequent to the time this News Release is first issued

Important factors that may affect future results and outcomes include, but are not limited to: our development and completion of new products and services, including State Street Digital and State Street Alpha, and the enhancement of our infrastructure required to meet increased regulatory and client expectations for resiliency and the systems and process re-engineering necessary to achieve improved productivity and reduced operating risk, may involve costs and dependencies and expose us to increased risk; our business may be negatively affected by our failure to update and maintain our technology infrastructure; acquisitions, strategic alliances, joint ventures and divestitures, and the integration, retention and development of the benefits of our acquisitions, pose risks for our business; we face extensive and changing government regulation in the jurisdictions in which we operate, which may increase our costs and compliance risks; any misappropriation of the confidential information we possess could have an adverse impact on our business and could subject us to regulatory actions, litigation and other adverse effects; and attacks or unauthorized access to our information technology systems or facilities, or those of the third parties with which we do business, or disruptions to our or their continuous operations, could result in significant costs, reputational damage and impacts on our business activities.

Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in our 2021 Annual Report on Form 10-K and our subsequent SEC filings. We encourage investors to read these filings, particularly the sections on risk factors, for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this News Release should not by relied on as representing our expectations or beliefs as of any time subsequent to the time this News Release is first issued, and we do not undertake efforts to revise those forward-looking statements to reflect events after that time.

© 2023 State Street Corporation - All Rights Reserved

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View source version on businesswire.com: https://www.businesswire.com/news/home/20230126005563/en/

Media Relations Contact:

(State Street)

Ed Patterson

+1 404 213 3106

epatterson@statestreet.com

Investor Relations Contact

(State Street)

Ilene Fiszel Bieler

+1 617-664-3477

ifiszelbieler@statestreet.com

Source: State Street Corporation

FAQ

What is State Street's new cloud strategy for 2023?

State Street has selected Amazon Web Services (AWS) as a strategic cloud provider while expanding its use of Microsoft services to modernize its technology infrastructure.

How will State Street's partnership with AWS impact its operations?

The partnership aims to transition State Street's North American data centers to AWS, optimizing their data center footprint and enhancing agility.

What is the expected outcome of State Street's technology transformation?

The transformation is expected to increase resiliency, enable rapid innovation, and enhance client experiences.

Are there any risks associated with State Street's cloud transition?

Yes, the transition involves potential risks related to infrastructure changes and operational continuity.

How does this cloud strategy affect State Street's stock (STT)?

The strategic cloud initiatives may improve operational efficiency and long-term growth, but risks during the transition could influence stock performance.