01.15.2015

Hedge Funds Gravitate to Cloud

01.15.2015
Terry Flanagan

Hedge funds and other capital markets firms are using the cloud to take advantage of performance and economic benefits to scale more effectively, run operations more efficiently and focus on core business.

“Throughout the past year, the major theme we have seen in many companies across the financial sector is a realization that outsourcing to the private cloud is not only a viable cost-saving measure, but also a way to improve efficiencies and scalability,” said Jason Elmer, director of business development at Abacus Group, a provider of outsourced IT services to hedge funds.

Abacus closed out 2014 with a 50 percent annual revenue growth propelled by the demand for its AbacusFLEX private cloud. “Due to the increased regulatory demands and added cost pressures for hedge funds, more funds are selecting the AbacusFLEX platform to run all their IT-as-a-service in the most cost-effective manner available,” said Elmer.

In June 2014, Abacus launched FlexDrive, an on-demand cloud storage, sharing and synchronization service that allows hedge funds and private equity firms to securely share and transfer files across users and devices.

In the wake of a number of security breaches in the public cloud, Elmer sees cybersecurity becoming a major focus for many financial corporations in 2015.

The demand for Abacus’ private cloud solutions has been fueled by an increased interest in managed services and hosted solutions from the financial services industry. Concerns of security and lack of control are top challenges to cloud adoption, Elmer said, citing research by Aite Group.

“Abacus has made significant investments in these areas to help clients overcome these obstacles, including appointing senior executives to oversee its information security and financial services initiatives and opening new offices in both Dallas and Los Angeles,” Elmer said, noting that the company predicts that these investments will fuel continued strong growth throughout 2015.

Featured image via Dollar Photo Club

The capital markets media outlet @marketsmedia covered Chainlink x ICE today

ICE, Chainlink to Bring FX & Precious Metals Data Onchain

“Marks a significant milestone on the pathway towards the mainstream adoption of onchain finance.”

Celebrating women shaping European finance
European Women in Finance Awards deadline is Aug 23
#WomeninFinance #Finance #WIF
Nominate here: https://www.jotform.com/form/250276204100339

Load More

Related articles

  1. They combine blue-chip names with monthly income & the power of an ETF structure.

  2. Euronext Aims for ETF Growth

    They are designed to provide full sector exposure while staying within regulatory limits.

  3. There were $124.16bn in net inflows during July alone.

  4. Daily Email Feature

    Active ETFs Drive Inflows

    Growth could accelerate further if the SEC approves share class ETFs.

  5. The 11 new ETFs are the first funds under the new Northern Trust ETFs brand.

We're Enhancing Your Experience with Smart Technology

We've updated our Terms & Conditions and Privacy Policy to introduce AI tools that will personalize your content, improve our market analysis, and deliver more relevant insights.These changes take effect on Aug 25, 2025.
Your data remains protected—we're simply using smart technology to serve you better. [Review Full Terms] | [Review Privacy Policy] By continuing to use our services after Aug 25, 2025, you agree to these updates.

Close the CTA