With the cloud looming large on hedge funds, the role of chief technology officer is fundamentally shifting. Those in the position at medium to large funds are taking additional responsibilities, while the job's duties at new and small funds are being outsourced.
With the cloud model, the portion of the traditional CTO role devoted to managing "break-fix" situations is evaporating, says Art Murphy, director of client development for Abacus Group, a cloud-hosting service provider to hedge funds serving upwards of 250 clients.
Smaller hedge funds, which are often new and growing, are frequently more focused on earning a track record rather than technology planning.
"The smaller firms are not looking toward a CTO to sit down for quarterly business plans, they are just looking for someone in the trenches to say systems are working and ready to go. I think for smaller funds, cloud providers are replacing that person with a team of people," Murphy says.