London - The head of software and service provider Indata said traditional buy side firms are becoming increasingly comfortable with cloud-based technology -- and not only because it can save them money.

"Our segment of the market that we define is the institutional asset management space," Indata Managing Director David J. Csiki told Automated Trader.

"Cost is a component, but we've found it isn't the central component. It's really having a better infrastructure," he said. "Firms are in the process of investing, at least the firms that are doing well."

In London to promote Indata's cloud offerings, including a new product called iPM Connect, Csiki said many buy side companies needed to modernise.

"A lot of them are using what we would define as legacy systems. It's either an older system that's being sunsetted, or it uses a non-industry standard database technology which is proprietary, things like that."

Csiki said that on the trading and algorithmic front, the main focus for Indata was on its order management system.

"These clients are using the OMS and they're doing all the trading strategies that you would do out of traditional buy side bases, including algorithmic trading, all built into our front end work management system."

The company said assets under management among its clients ranges from $25 million to more than $80 billion across a variety of asset classes. A large part of the client base is in the United States or the UK, Csiki said.