Data on Cloud Usage

February 1, 2012

Our friends at FTF News recently published the results of an interesting study on the acceptance of cloud computing amongst financial services firms.  The study follows the same format as a prior survey conducted in 2011, and makes a number of interesting points about changes in cloud adoption over the past year.  To see the story, click here – note that it requires a login.

The survey highlights that more than 75% of respondents will be funding the cloud at a variety of levels.  However, of those investing in the cloud, the majority are funding it at “low” or “medium” levels of spend.  Also, the majority of these investments are for disaster recovery, business continuity, email support, mobile computing and other basic IT services.

One of the survey takeaways is that cloud computing has not gained much traction in the middle-to-back office.  For example, the survey indicated that few people are investing in cloud for operational functions such as corporate actions (7%), reconciliation (4.9%) and settlement (4.1%).  The key concern preventing adoption is security and privacy, which was cited by nearly half of the survey respondents.

While the term cloud comes up often in our discussions with clients and prospects, the survey results match our experience in the marketplace.  The FTF survey suggests that private clouds are preferred for deployment, along with software as a service (SaaS) offerings – only 7.8% of survey respondents are using public clouds (up from 5% in 2011).  There is also anecdotal evidence suggesting that much of the investments in cloud are designed to reduce hardware costs more than anything else.

This intuitively makes sense to us, because while large asset managers are interested in efficiencies, they stand to lose the most if they rely on a public cloud that fails or is subject to security issues.  This is why PORTIA offers a comprehensive set of solutions that can installed, hosted or outsourced – consistent with the needs of the asset management community.

What trends are you seeing in cloud adoption in the middle-to-back office? 

-Matthew Bellias, Director of Strategy and Marketing

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