Hedge fund and investment management firms are currently using cloud more than they were a year ago, according to a survey commissioned by Eze Castle Integration, a cloud services, IT solution and technology consulting firm for hedge funds and alternative investment firms.
About 87% of respondents reported using the cloud for easy applications, greater control over IT budgets, reduced it complexity and improved disaster recovery. This is in comparison to 2012, when almost 8 out of 10 organizations were using cloud for some of their infrastructure or application needs. Also, one-third reported their firms are spending more on cloud this year.
Read: Cloud Adoption Rapidly Gaining Speed in Financial Services to learn more.]
Of the respondents using cloud, 74% of firms are using private cloud to meet all or part of their IT and application needs. When asked about the ways in which their firms were using cloud services, 64% specified they were using cloud for basic business or office functionality like email, file services and storage. About half of firms are using private cloud exclusively.
According to Bob Guilbert, managing director at Eze Castle, firms switched to cloud for more predictability for capital expenditures and operation expenditures.
Guilbert adds, “they also believed, which is true, they would also receive greater or improved disaster recovery and business continuity by using cloud solution.”
However, some firms still remain cautious about switching to cloud. The top five concerns for cloud deployments include security and data protection, regulatory and compliance requirements, fear of overspending on support, fear of vendor lock-in and fear of outgrowing the cloud.
Over one-third of organizations surveyed managed assets of less than $100 million, while four out of 10 firms managed assets greater than $500 million. About half are using it to host financial applications and 42% use it for other services or infrastructure needs.
The survey was conducted to evaluate how alternative investment firms are adopting the cloud and the types of applications they were using. About 100 senior level individuals completed the survey, which ran from August 5 to 15, conducted by IDG Research Services.