Asset managers’ reliance on data has increased substantially over the years, and its use in decision making has led to newfound efficiencies and perhaps even stronger inflows. In our annual outlook, we identified a growing appetite for data as a service (DaaS) as one of the three core trends for the buy side in 2021, which we’ve already seen increase at an exponential rate.
With the massive amount of data currently available in its ever-evolving forms, firms have implemented a number of internal projects to assist in its management. According to Tudor Investment Corporation’s Ulrike Hoffmann-Burchardi in her recent Financial Times op-ed, “Annual data creation is on track to reach what is known as one yottabyte before the end of this decade. One yottabyte is equivalent to 1tn terabytes of data,” further driving the need for firms to ramp up their data infrastructure to prepare for this new era.
However, many have failed to achieve the results they once anticipated at the start of their data projects due to their use of fragmented solutions that were not intended or designed to work together. Through our conversations with managers, we’ve found that their current solutions lack the flexibility required to handle the variety of data and are often expensive to upkeep.
Noticeably fatigued by this reality, many managers are turning to digital-first providers to deliver cleansed and normalized data on a fully managed basis. In fact, Hoffmann-Burchardi furthers this point on a broader scale as she notes, “Companies with a digital and data-first foundation will challenge incumbents in healthcare, industry and transportation. In the technology sector, data infrastructure software will emerge as a pre-eminent category.”1
IVP Data Management as a Service
IVP Data Management as a Service enables asset managers to offload the work of managing complex data sets while maintaining control and driving operational efficiency. This fully managed service covers all the essentials of data management — including hosting, maintenance, governance, cleansing, storage, and delivery — as well as the expertise required to create the analytics and dashboards that drive insightful decision-making for risk management and portfolio optimization.