White Papers Taking the Next Step in CTRM Cloud Solutions | Page 3

Taking the Next Step in CTRM Cloud Solutions

A ComTech Advisory Whitepaper

E/CTRM IN THE CLOUD
In recent years, consumer and business cloud-based applications have begun to catch on and that familiarity does
seem to have benefited the E/CTRM in the cloud market as well, as customers are now much more familiar with the
benefits than they were 5 years ago.

It is important to note that it’s not just the smaller commodity traders that see the potential benefits of a cloud-based solution either. Recent
ComTech research1 suggested that, in general,
all buyers of E/CTRM software are increasingly
open to considering alternatives to the traditional “on premises” implementation model. While a
small, but committed, minority continue to resist
anything but the traditional on-premises implementation approach, the overwhelming majority
of respondents will consider cloud deployment
for a variety of vertical application areas in and
around commodity trading.

However, the same research suggested
that only 16% of those who responded to the survey already used a cloud-based E/CTRM solution. It also showed that just around half would
seriously consider E/CTRM in the cloud as a
procurement option though the final decision
was often still more likely to lean toward a traditional installation. Beyond a general softening
of overall objections, the sluggish global economy has been driving increased interest in cloudbased E/CTRM, as the potential for substantial
cost savings for the acquisition and implementation of cloud solutions (versus that for traditional
software) is attractive.

General perceptions regarding software
delivery in the cloud have improved over the last
few years. A majority of the survey respondents

held favorable or improved views of the model; almost certainly in
part due to increasing exposure to cloud-based products generally in both the consumer and commercial markets (including online exchange trading, on-line banking, CRM solutions and even
iTunes). However, the most pressing issues associated with cloud
delivery remains potential security issues, concerns about loss of
control over their data, and perceptions of difficulty in integrating
with cloud based or web delivered software applications.

In reality, the security issues related to E/CTRM deployment in the cloud may be somewhat overwrought. With the advent
of on-line exchange trading and trade reporting, most companies
today already have significant volumes of trade data “floating
around in the cloud”, and with the new regulatory reporting requirements, that volume of trade data sitting outside of a trading
company’s firewall will only increase. There will be a continuing
acclamation to, and acceptance of, cloud-based applications/data
storage as web-based trading and reporting becomes even more
common. That being said, data security should always be a critical
concern to users of E/CTRM systems, regardless of whether that
data is in the cloud, in an in-house server room or sitting in a box
on a trader’s desk.

The attraction of cloud-based E/CTRM software is not
limited to ease of deployment. The ongoing cost benefits are also
quite attractive as it potentially significantly reduces the need for
expensive implementations, upgrades and maintenance activities
as well. Web-based means users have instant access to the full
range of functionality from your Web browser. There are no long,
costly installations or expensive servers and databases to buy and
support. E/CTRM in the cloud has potentially positive implications
for speed of implementation, cost of ownership, operational flexibil-

1 | CTRM in the Cloud, Commodity Technology Research Report, January 2014 (Sponsored by Aspect Enterprise, Brady PLC and Generation 10)

© Commodity Technology Advisory LLC, 2014