Evolving CTRM in the Cloud
A ComTechAdvisory Whitepaper
CTRM IN THE CLOUD
ComTech has estimated growth rates for CTRM deployed in the cloud to be around 15%+ per annum and the combination of regulatory drivers and cost issues may push deployment rates even higher. The survey suggested that
reduced maintenance headaches and reduced costs were attractions, while security concerns continued to worry
many. However, as regulatory reporting bites and commodity traders are forced to report trade data to third-parties that will hold that data off-site, some of this concern may be eased.
It’s worthwhile revisiting the pro’s and con’s of the
cloud for CTRM deployment as indicated by the ComTech
study. On the pro’s side, most focused on costs, citing lower total cost of ownership, lower entry costs and lower implementation costs combined with some efficiencies in terms of
demand on IT resources and speed of upgrades and deployment. Meanwhile, difficulties in integration, security and loss
of control were the major concerns (Figures 1 and 2). These
cons were echoed in reasons why some trading shops would
not procure CTRM in the cloud (Figure 3). Of course, there is
a tipping point at which the cost and efficiency gains outweigh
the integration, security and controls side of the equation and
since the survey was performed, the basic dynamics of the industry have significantly and permanently changed perhaps
moving the tipping point more in favor of cloud deployment.
Figure 1: Assessment of the Benefits of Cloud Deployment
Relatively easy to replace if or when necessary
More secure backup, recovery and cyber security
Ease of version upgrade
Faster deployment
Lower implementation costs
Lower demand on internal IT resources
Lower entry cost – server and system costs
Lower Total Cost of Ownership
3.4
3.5
3.6
3.7
3.8
3.9
4
4.1
4.2
4.3
Figure 2: Assessment of the Downside of Deployment in the Cloud
Less secure backup and recovery
Loss of agility for competitive advantage
The regulatory environment represents a potential
sea change. It isn’t just getting to grips with the idea that
trades need to be reported and held in a third-party repository, it is also the idea that portfolios need be compressed and
optimized and that this also likely requires portfolio details to
be shared with a third-party. With all of the drive towards other people having some of your data, perhaps one barrier to
cloud will be slowly eroded. It will also drive investment and
innovation in the area of security of data and processes such
that eventually, the security concern will surely be significantly
weakened?
Inability to customize
Lack of control
Security concerns (access and data)
Difficulties in integrating with other systems
3.5
3.6
3.7
3.8
3.9
4
4.1
4.2
4.3
4.4
Note: Respondents scored the values between 1 and 5 wh W&RRv2fW'