Finance

Eight Out of Ten Hedge Funds & Investment Firms Are Adopting Business Cloud Computing

Featuring responses from 125 senior-level executives, the survey found that more than eight out of 10 hedge funds and investment firms use or are deploying the cloud for IT infrastructure or application services.

“This survey and the recently launched Cloud Forum are two invaluable resources hedge funds should utilize to explore how cloud services can support their business operations.”

The strong adoption rate of cloud services indicates increased emphasis on the benefits the technology is bringing to the financial industry. The survey found that the top three factors influencing adoption of cloud services are the ability to reduce IT infrastructure costs (85 percent viewed as extremely important/important), increase speed of technology deployment (83 percent) and simplify IT management (82 percent). Other factors include improved access to resources on-demand and the ability to take advantage of built-in disaster recovery functionality.

Cloud Survey, Private Cloud Survey, Public Cloud Survey The survey also showed that private clouds are the models of choice, with 71 percent of those using cloud services indicating they were using private cloud platforms. Additional findings include:

  • Fifty-seven percent of respondents began their use of the cloud with basic business or office functionality, including email, file services and mobility. Thirty-four percent indicated their first use of the cloud was for hosting of financial applications.
  • Eighty-four percent of respondents indicated cost-effectiveness as the top reason for selecting their private cloud service providers. Security policies and procedures, and knowledge of cloud within the financial industry were close second and third factors scoring 82 percent and 81 percent on extremely important/important, respectively.
  • Seven out of 10 respondents ranked concerns about security as well as information governance and meeting regulatory requirements as significant barriers to cloud deployments.

 

Study demographics:

The online survey conducted by IDG Research collected information from 125 senior-level executives at hedge funds and investment management firms within the United States that were using or planning to use the cloud for infrastructure or application services. Forty-five percent of these individuals worked at firms with more than $750 million in assets under management (AUM); 23 percent had an AUM between $250 and $749 million; and 32 percent had less than $250 million in AUM at the time of the survey.

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