Half of JPMorgan Chase’s total infrastructure spend is on the cloud, the bank announced Monday during its 2022 Investor Day.

Investors were left scratching their heads in January when the $4 trillion global bank announced it would increase its 2022 tech spend by 20%. During Monday’s 2022 Investor Day, which included a 20-minute technology presentation and digital-heavy analyst Q&A, the bank gave an update on its multicloud data migration.

“With our infrastructure, we completed the buildout of our private cloud, and have enabled one public cloud provider, with two more in progress,” Chief Information Officer Lori Beer told analysts. “About 30% of our infrastructure spend is on cloud. Having said that, if we define cloud the way others have — and include virtual servers — we are nearly at 50%.”

Infrastructure spend is part of JPMorgan’s broader “run-the-bank” expenses, which will total $7.4 billion in 2022, and includes software licensing and application and production support. Details of specific infrastructure spending amounts were not disclosed.

JPMorgan Chase is also consolidating its portfolio of global data centers to 17 from 33 by 2025, Beer said, adding that the initiative is roughly 40% complete.

Automation across the enterprise

JPMorgan shed light on the automation it has deployed across its back-end development and engineering workflows. Beer specifically noted:

• 40,000 software engineers are developing 30,000 releases per month;
• 60% of applications have been boarded onto modern software development tools, with a goal of 80% by the end of 2022;
• 95% reduction in hardware provisioning time;
• 20% faster delivery of features due to automation; and
• 10% “improvement” in engineering productivity within the next three years.

Automation results across the bank’s business lines include:

• 30% risk reduction and 80% reduction in calculation cost per hour for the Athena markets platform through AWS refactoring;
• 99% site availability and 50% reduction in runtime costs on Chase.com through AWS and private cloud; and
• $50 million in savings for ServiceNow process automation software through SaaS upgrades of legacy components.

These automations will create new efficiencies for JPMorgan Chase, Beer added.

“Over the next three years, our investments in modernization and software development will translate into $1.5 billion in productivity and cost efficiencies,” she said. “This is driven by a 10% improvement in productivity across our technology workforce, and 15 to 20% cost efficiencies in our infrastructure spend.”

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