Most Investment Firms Are In the Private Cloud. Is Your Firm?
Earlier this week, we announced the findings of our 2013 market survey: Examining Cloud Usage within the Investment Management Industry. If you haven’t already, check out our infographic here.
If you’re not up for reading the full report yet, here’s Part I of our Cloud Survey Recap. Be sure to come back next Tuesday for Part II!
As a follow up to our 2012 Cloud Adoption Trends Survey, we wanted to take a closer look at how and why hedge funds and investment firms are leveraging cloud services in today’s marketplace. Working again with IDG Research, we surveyed 101 investment firms across the U.S. about their current and planned cloud usage.
Firms covered a wide range of asset bases: 38 percent reported less than $100M; 20 percent fell between $100 and $499.99M; 19 percent between $500M and $999.99M; and 20 percent said they had more than $1B.
You might recall that last year, our survey found that 8 out of 10 investment firms were using or planning to use the cloud. In 2013, that number has increased, and we found that 87% of firms are currently leveraging cloud services for some or all of their business needs. More than 6 in 10 firms are using the cloud for basic business/office functionality including email, file services, and storage solutions. Other key uses of the cloud include financial application hosting and complete IT outsourcing. About a quarter of firms (24%) also said they were using the cloud in other ways, which may indicate increased usage of SaaS applications or cloud-based disaster recovery solutions.
The move to the private cloud continues to be the dominant journey for hedge funds and investment firms, as 74 percent of firms said they are currently using a private cloud solution either exclusively or as part of a hybrid deployment. When asked why they selected their particular deployment method (public, private or hybrid), those who went with the private cloud cited security as the primary factor. One firm said:
“Security is the number one driving factor above everything else.”
Speaking of security, it appears firms have come a long way in feeling comfortable about their data and applications in a cloud environment. According to our survey results, investment firms overwhelmingly believe that private cloud deployments are more secure (60%) or just as secure (33%) as an on-premise technology infrastructure. Firms are less confident in the public cloud, however; 61 percent said it was less secure than an on-premise environment.
We also asked respondents to indicate the top business requirements driving their move to the cloud. Top results included:
Easy access to applications and simplified application management
Greater control and predictability of IT costs and budgeting
Reduced complexity and management of IT
Improved disaster recovery and business continuity
Interested in reading more about what your peers had to say? Download our full survey report here. And don’t forget to come back to Hedge IT on Tuesday for Part II of our findings recap!
Photo Credits: Eze Castle Integration