Bloomberg Opens Up A Little More With Teknekron's Help

Customers will soon be able to use Bloomberg data in their own UNIX-based analytical applications, under an agreement be tween Bloomberg and systems integrator Teknekron Software Systems Inc.

Teknekron is developing software to enable customers' UNIX server-based applications to access Bloomberg data -- and ensure that the resultant output is delivered solely to Bloomberg terminals outfitted with X terminal software. Sources say customer applications may run on any UNIX-based server hardware.

Bloomberg's latest move towards openness is still a cautious one, however. The new offering will insulate Bloomberg's data -- as much as possible -- from the lack of control normally associated with client/server-based distribution: Teknekron is developing security safeguards as part of the software. Bloomberg-based analytic and data traffic may be carried exclusively over Bloomberg's local network. As always, the only authorized display device for the information will be Bloomberg terminals.

Nevertheless, the pact will benefit customers anxious to get their hands -- and analytics -- on Bloomberg's heretofore proprietary databases of historical, fundamental and real-time information. Under the service, users may also use derived data, such as calculated yields -- to drive their own applications.

The move takes Bloomberg a step beyond its planned Quad Screen, which allows customers' own UNIX-based analytics to be displayed on a four-monitor Bloomberg terminal (IMD, June 21). The Quad Screen is scheduled for release by the end of the year. But that service wasn't meant to use Bloomberg data. Instead, it was to take digital data from any of Bloomberg's rivals -- like Dow Jones Telerate or Reuters -- or from customers' internal databases.

Despite rumors to the contrary, sources say Bloomberg is not acquiring a stake in the Palo Alto, Calif.-based software vendor.

Teknekron officials decline to comment on the pact with Bloomberg. The eponymous Mike Bloomberg didn't return calls.

However, sources close to the deal say no money will change hands between Bloomberg and Teknekron. Customers will pay Bloomberg the usual $995 or so per terminal for its data and analytical services. They'll also pay the usual consulting and software fees to Teknekron.

A number of customers of both vendors have expressed a strong interest in using Bloomberg's data in their own local UNIX server-based applications. One of those would-be customers happens to own a 30 percent share of Bloomberg: Merrill Lynch & Co. has installed Teknekron's software for use by 100 of its fixed-income traders (Trading Systems Technology, Sept. 20). Merrill has long relied on Bloomberg for data services, but will increasingly turn to proprietary UNIX-based applications.

Others now using Teknekron's software in their trading rooms include Salomon Brothers Inc. and Goldman Sachs & Co. Although both are partners in the EJV Partners L.P. venture to build a rival to Bloomberg, Salomon has a hundred or so Bloomberg terminals and Goldman Sachs has hundreds.

Previously, Bloomberg customers were permitted to use the vendor's data to drive their own applications, but had to write those applications to run on Data General Corp. Aviion servers or Concurrent Computer Inc. mainframes located at Bloomberg's site (IMD, March 16, 1992).

This option will still be open to customers. In addition, subscribers wishing to share proprietary UNIX-based analytics with their own customers may house the hardware at Bloomberg's data center. In that case, Bloomberg handles -- and absorbs the cost of -- communications traffic and entitlements.

Alternatively, customers could request that Bloomberg add specific analyses or calculations to its service. Such requests would be put on the vendor's development list and added to the system for use by all Bloomberg customers. This practice helped Bloomberg build the range of applications it now offers.

However, Bloomberg's installed base now exceeds 30,000 terminals. As a result, the list of requested applications has grown longer and longer -- and so has the time it takes for customers' requests to be met.

With the planned service through Teknekron, Bloomberg's central processor will continue to host the data. Data may be passed from a Bloomberg controller located at customers' sites via Ethernet communications links to any UNIX-based server capable of running Teknekron's software.