The capital markets industry finds itself in a state of profound, and self-inflicted, turmoil. The impact of the current financial crisis, the worst since the Great Depression, is still being felt by every company in the industry. There is no doubt that by the time recovery eventually arrives, the industry as we know it today will be forever changed.
Financial advisors are focused on restoring investor confidence in the markets and on helping clients navigate a very challenging investment environment. Alongside these short-term issues lie broad strategic changes:
A growing retirement population focused on more risk-averse, outcome-based investments
The continued move in retirement funding from defined benefit plans to defined contribution plans, which shifts risk from the corporation to the individual
More than ever, firms in the capital markets industry require fast, efficient consolidation of acquired companies, reduced IT spending, and cost-efficient delivery of software solutions to address business challenges. Microsoft and its broad range of partners provide these firms with the technology solutions they need to stay competitive in today's market.
The Microsoft platform offers scalable, secure, and familiar technology that is cost-effective and simple to use and that supports all aspects of the trade life cycle.
Microsoft Capital Markets solutions include:
In today's financial environment, asset management firms are striving to remain competitive and offer their clients the best returns possible on their investments. With a focus on Portfolio and Investment Management, Microsoft and its broad range of partners provide investment institutions with the scalable, integrated, cost-effective portfolio management and accounting solutions they need to maintain their competitive edge.
Microsoft technologies are uniquely suited to the needs of portfolio and investment managers, because many portfolio management workloads originate on a Windows desktop and rely on Microsoft Office Excel. Microsoft technologies provide seamless, end-to-end integration that simplifies portfolio modeling. In combination with partner solutions, the following Microsoft products are uniquely suited to Portfolio and Investment Management solutions: Office, Windows HPC Server, SQL Server, Dynamics CRM, FAST ESP, and Microsoft Solver Foundation.
Those institutions that survive and prosper in today's financial environment will be the ones that can more quickly manage higher data volumes, more easily address greater data complexity, and more productively execute challenging data analysis. With a focus on Order Management and Trade Execution, Microsoft and its broad range of partners provide investment institutions with the scalable, low-latency, and cost-effective solutions they need to maintain their competitive edge in a volatile market.
The following Microsoft products contribute to Order Management and Trade Execution solutions: Office (Client and SharePoint Server), SQL Server, and Windows HPC Server. Microsoft technologies provide a strong foundation for the largest partner ecosystem in the industry, with vendors that offer cutting-edge solutions for both buy-side and sell-side firms.
Sell-Side broker/dealers face the challenges of rebuilding their balance sheets and reducing their risk exposure. Many firms have publicly announced a reduction, and some even an end to, proprietary trading, a source of much of their losses in recent years. They are focused on rebuilding investor trust and on cultivating client facing businesses that deliver predictable revenue streams without unpredictable risks. They are also braced for a new round of regulation and compliance to limit excessive leverage and off balance sheet based trading activity. 
Buy-Side asset management firms are preparing for much lower revenue from management fees due to the significant withdrawal of funds by investors and the fact that those investors are now looking to put their money into assets, for example money markets funds or treasury bills, that deliver historically lower returns (and therefore lower fees for fund managers). The hedge fund industry is resigned to significant contraction as many of these firms either consolidate or the funds themselves close. Those hedge funds that survive are expecting to be subject to the broader compliance and regulation requirements of their larger and longer established peers.