Thomson Reuters will remove more legacy systems from its product line-up in 2013, as it seeks to streamline its operations with increased focus on its flagship Eikon and Elektron platforms.
The financial services company shut down 100 legacy products in 2012 in continued plans to move customers over to its Eikon trading data platform. Thomson Reuters president and CEO Jim Smith stated in an investors call yesterday that the “vast majority” of its 3000 Xtra would also be retired by the end of 2013, as more legacy systems go.
“These moves allow us to eliminate legacy technology platforms like the bridge network, that will also be retired by year-end and importantly, the Eikon/Elektron foundation will allow us to reset our cost base,” Smith said.
By retiring its older stems Thomson Reuters hopes to save on support costs for customers using its older system, with Eikon aimed at consolidating legacy systems into one platform, simplifying and modernising its financial data delivery.
The Eikon platform suffered from a slow start following its introduction in 2010, but the platform has seen steady growth in the past year, with thousands of customers shifting to the platform each week by the end of 2012.
The total number of user has reached over 30,000 users, keeping the company on track to achieve its goal of moving all of its current customers over to Eikon.
“Technologically, we are simplifying the front and back end,” Smith said. “Not only does this help our cost profile, it also allows us to roll out new product releases much faster.”
“Eikon installs averaged 200 per week early in the year and averaged 2,000 per week in December. That is a big reason why the 34,000 Eikon customers at year-end were up nearly three times where we entered the year,” Smith said, also pointing out that a third of Eikon customers are new customers
Last month Thomson Reuters announced the latest version of Eikon, with a number of additions to the systems such as Google-style search and added visualisation tools.
Smith also indicated that there would be further additions to the platform this year, with an investment management segment added to the foreign exchange, commodities, energy and fixed income segments, as Thomson Reuters comes closer to a offering a completed Eikon system.
The moves to “rationalise “ its product comes as the company announced it would cut 2,500 staff from its financial and risk division, which is responsible for the lending of computer terminals to trading customers.
Thomson Reuters said that the roles that have been removed are all part of its aim to run business operations more efficiently, and are not specific to moving from legacy products to Eikon.