February 27, 2019

Why Should Hedge Funds Embrace the Public Cloud?

by: Align

In today’s changing economy, hedge funds are facing pressure to improve operational efficiency, strengthen IT security and remain compliant under new industry regulations.

With public cloud providers updating their offerings to meet the needs of different businesses, feature enhancements such as robust security controls have shed the public cloud’s image as an unstable environment.

These built-in layers of cybersecurity, in conjunction with scaling capabilities, flexibility and cost-savings, have caught the attention of leading hedge funds and the broader financial industry. In fact, Thomson Reuters reported that financial firms are now expecting to spend 47% of their IT budgets on the public cloud this year.

If your hedge fund is on the fence between reaping the benefits of the public cloud or not, we’ve outlined a few reasons why it’s worth considering:

1. Highly Scalable 

Public cloud hosting services, like Amazon Web Services (AWS), Microsoft Azure, IBM and Google Cloud, provide fund managers the necessary tools to achieve operational change and growth.

Unlike traditional computing models that require more planning and daily routine work, the public cloud allows fund managers to add or reduce storage and services rather quickly. Small-to-midsize firms can benefit from selecting the number of resources they wish to start with and adding on additional requirements according to their needs.

2. Reduces Cost 

All businesses seek to reduce costs and build a track record of profitability. The reason why the public cloud pay-as-you-use model is favorable among hedge funds and alternative investment firms, is that IT outsourcing costs are predictable and drastically lower than the price of private clouds.

Fund managers can now budget for storage and applications needed at a given time. The capital costs of servers, storage and networking services are no longer something their firm has to pay upfront.

3. Flexible Elasticity

Due to the elastic nature and advanced capabilities of the public cloud, this environment is suitable for any hedge fund manager regardless of its size, location, investment program, complexity or other attributes. Fund managers can now run complex algorithms and artificial intelligence workloads without needing massive compute power that these workloads require.

4. Improves Efficiency

Public cloud infrastructures offer compelling opportunities and advantage for hedge funds, without the need for internal IT teams to manage workloads and perform daily operational IT tasks. Programs like Office 365, Teams and OneDrive allow businesses to work efficiently while saving time. These tools also enable teams to collaborate in fully secured network settings.

5. Offers Robust Security

As hackers and cybercriminals seek new means to steal confidential client data, personal information and assets, financial firms have become a prime target for cyber-attacks and insider threats.

Public cloud service providers like Align offer managed public cloud solutions with an IT architecture that is layered and stacked with built-in cybersecurity controls to monitor risks and thwart off attacks. These solutions allow our clients to focus on their business and rest assured that their data is protected and intact.

If your firm is looking to increase scalability, reduce overall cost, and improve security then the public cloud is the right solution for you.

To reach out with a cloud expert at Align, click here or below to speak with a specialist.

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“Align is our trusted provider for all our Managed Services and cybersecurity needs. They provide us best-in-class IT services that not only help drive productivity and growth, but ensure we meet both current and evolving compliance and security requirements with ease. As consultants to financial advisors, trust and reliability are indispensable to our operations, which is why we never hesitate to refer Align to our very own client base. Align isn’t just our partner, they are an extension of our team. We look forward to entrusting them with our IT infrastructure for years to come.”

Ed Fasano - Experienced Advisory Consultants LLC