Hedge funds see cloud as effective way to outsource IT infrastructure

Hedge fund managers are outsourcing IT infrastructure to the cloud as a way to save money. However, counterparty risk, security and reliability are of particular concern to investors.

Hedge funds are at a technological inflection point. A growing number of funds are choosing to outsource IT infrastructure to the ‘cloud’, substituting internal hardware and resources for hosted internet-based services.

In the cloud a hedge fund can operate using a few laptops, a printer, a phone and a high-speed internet connection. Faced with the higher business costs resulting from lower revenues, increased regulation and middle-office complexity, hedge funds are increasingly swapping the