Growth and Transition Strategy Update
BlackRock's “cloud-like” platforms fuel value for clients
Trends with asset owners match industrial
change driving “on-prem" to "cloud"
•
Access innovation & scale
Cloud computing spend to grow ~1.5x vs.
traditional IT from 2019 to 2025E
Spend on cloud computing2
•
Faster deployment
•
Cost restructuring & efficiencies
Spend on traditional IT²
30%
•
Improve business agility
•
Enhance resilience
•
Positive network effects
One BlackRock - Platform Use Cases
2019
✓ EM exposures instantly access 24 countries1
iShares
✓ Derivatives replacement, reduce collateral
management costs
Model
Portfolios
Institutional
✓ Use scale of BLK trading, research, portfolio
management & investment servicing
Outsourcing
✓ Cost variabilization & efficiency
Note: For footnoted information, refer to slide 11.
BlackRock
41%
51%
2022
2025E
✓ Models-based advisors grow faster (vs. rep as
PM, brokerage)
✓ Reduce costs of maintaining in-house CIO staff
✓ Move to unified tech stack
Aladdin
✓ Positive network effects
✓ Opportunity for client margin premium
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