Forefront Communications

Traders: Economics – A Major Motivator for Managers’ Cloud Moves

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Sam Belden

Sam Belden

Research reports and market statistics tell us that cloud computing and the SaaS delivery model have arrived in the enterprise and are here to stay.

One example is a recent report from IDG based on a global, cross-industry survey it conducted with 1,000 executives. Respondents said that by mid-2018, 80% of their entire IT budgets will be committed to cloud solutions.

While market data on cloud and SaaS adoption among asset managers is harder to come by, it’s probably not far behind the rate reported by IDG.

CloudSeveral factors that are combing to accelerate this trend among asset managers and hedge funds are highlighted in a new report from Celent entitled The Path to the Cloud: The Buy-Side Front Office as a Service. The report cites the financial benefits as one of – if not the—most important factors motivating firms to transition away from in-house IT and toward SaaS and cloud alternatives.

All firms want the differentiation and competitive advantages that come with deploying cutting-edge technologies in their investment management processes. In the past, however, the upfront and ongoing costs of these systems, and having the IT staffs required to implement and maintain them, meant that those systems were reserved for only large, deep-pocketed firms.

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