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Cloud Takes the Lead

As concerns about security subside, cloud solutions are becoming the de facto choice for companies shopping for treasury technology.

Just 10 years ago, using cloud-based technology seemed a little too advanced for many corporate treasuries. Now treasury workstations based in the cloud have become the default for small and midsize companies, and cloud solutions are making inroads among the largest, most complex treasury operations.

Moving from software that is installed on a company’s own hardware, to solutions that are hosted on the hardware of the provider or a third party and accessed via the Internet, frees a company from IT chores and ensures that it is using the latest version of the technology without having to go through the process of implementing upgrades. The shift can provide the technology at a lower cost, as well.

Public Cloud Offering

OpenLink’s O’Toole said that while the company has made its software available via a private cloud for eight or nine years, the new offering is a public cloud, on Microsoft’s Azure cloud computing platform.

OpenLink’s customers are large treasuries that are complex and often have large FX, commodity and raw material exposures that require robust risk management, such as the treasury departments of financial services firms and companies that are heavy users of commodities. O’Toole noted that OpenLink can manage activity around debt and investments, including collateral management, margin and variation margin, enterprise risk and credit and said cloud solutions provide advantages for such treasuries. In particular, OpenLink’s cloud offers unconstrained computational power, which means companies are no longer limited by either functional or data processing constraints.

Internet Access

The fact that cloud solutions are accessible over the Internet is a plus for treasuries that have users spread out in different locations around the world.

“For multinational companies, it gives you a much easier platform to roll out and support your treasury globally,” Pettinato said.

Single Tenant vs. Multi-tenant

EY’s Bramwell argued that the “true meaning” of cloud is a multi-tenant SaaS solution, “where you have one single instance of an application in use by all clients.

“If you’re on true SaaS, you are only ever on the latest version of the product,” he said. “You never get the chance to become out-of-date or obsolete.”