Google recently unveiled a new technology called Wave that is essentially a mix of traditional email and instant messenger on steroids. They’ve deemed it to be “a new way to communicate and collaborative in real-time”. Essentially it allows you to communicate via a IM-like environment in real-time - meaning every key stroke can be displayed on the other end of the message as its being typed. Additionally, it allows you to involve multiple parties in the conversation or “wave” and allows simultaneous updates and changes to the message in real-time - you don’t have the message at the bottom of the IM screen that says “joe_blo is typing” - you see the letters as they are typed, and you see everyone that is typing to the message. All the “waves” are kept and listed in what looks very much like an MS Outlook environment…you see a list of all the “waves” with any that have been updated or unread in bold.

And now you say “So what?”

Here’s what I consider to the big deal…Google has built in an API that allows you to embed this technology in other applications. And again, you say “So what?”

I’ve always been a fan, and in someways an advocate, of incorporating communication technologies like instant messenger into ETRM systems. I was very excited about Yellow Jacket’s technology that could scrape IM screens and allow you to load IM based deals directly from IM into your ETRM system. Unfortunately, ICE came along and killed that little bit of potentially threatening technology, seeing that if you could communicate your bids and offers through IM to multiple trading partners and have those trading partners commit to a deal on IM, and then have that deal automatically load into your system…well, it starts looking like a mini-exchange.

Google Wave, even in today’s early incarnation, has the capability to embedded in other systems and appears to have at least rudimentary capabilities to move data in and out of those systems. So, think about it, you could easily, using your ETRM system, post out your bids and offers in a “wave” that you expose to multiple trading partners - 1, 2 or 10. They can view those bids and offers and make counteroffers or commit to the deal live - you’re seeing immediately what they are entering. You can negotiate in real-time with one or more of those counter parties, potentially creating a real-time auction, or you can quickly accept the bids and offers and clear your open positions. You can also bring additional counter parties in at any time to expand your potential trading group. With each “done” deal, you can (potentially in real-time) transfer that deal into your ETRM and instantly see the impact on your position.

The technology is still in its early development and is only available to a limited number of test users and developers. However, Google is going to make the product open source, meaning that anyone (like an ETRM developer) can take the code and create the kind of applications that could, if not revolutionize, at least bring improved efficiencies to trading systems and processes. Open source also means that no one can come in, buy up the technology and throw it on a shelve, never to be seen again.

RSS feed for comments on this post.
TrackBack URI