The Cloud is Here to Stay for Hedge Funds
It’s clear to most hedge funds that the cloud is here to stay. What’s not so clear is how every hedge fund can leverage the cloud- especially larger sized hedge funds- for the best results. While publicly perceived as being ideal for start up and mid sized hedge funds, when used for the right purposes, the cloud can have transformational effects on these large hedge funds as well.
How Large Hedge Funds Can Leverage the Cloud for Enhanced Security
Many hedge funds may be using the cloud in some format with Software as a Service and cloud file sharing, but may hesistate at the thought of utilizing the cloud for Infrastructure as a Service (IaaS), or Platform as a Service (PaaS). One key reason for this is the perceived risk of damage to a a hedge fund’s reputation following a potential data security breach in the cloud.
However, these security risks are often easily mitigated, especially when hedge funds move to a private cloud model. Reputable private cloud providers implement multi-layered security strategies by using edge-to-edge, next-generation methods to prevent cyber-attacks. In addition, hedge fund private cloud providers make significant investments in physical security and staff training and utilize comprehensive monitoring and intrusion detection tools that alert and lock down, should anything get past the perimeter security.
How Large Hedge Funds Can Leverage the Cloud for a Competitive Edge
For the hedge fund industry specifically, large firms can take advantage of the cloud’s scalability and flexibility by housing less critical applications here. By utilizing the compute power of the cloud for applications and tasks such as risk calculations or analytics, large hedge funds can retain control over their sensitive data without overpowering their own infrastructure. In addition, for many large hedge funds, the “burstable” nature of the cloud is ideal for absorbing those irregular or infrequent but inevitable power hungry tasks or applications.
Large hedge funds can also use the cloud to give them a competitive edge. By hosting applications and services such as unified communications in the private cloud, large, forward thinking hedge funds are able to be more innovative.
Finally, all the usual cloud benefits, such reduced capital expenditure and a more predictable cost model, are as valuable to a large hedge fund as they are to a smaller hedge fund. Larger hedge funds can also benefit from reduced operational overheads, removing infrastructure management from the IT Department’s remit, allowing them to focus their attention on more strategic technology innovations.