At Eze Castle Integration we just published our 2016 Private Equity CTO Survey, which looks at four key areas: Business priorities, Cybersecurity, Outsourcing trends and the Evolution of the private equity CTO. Here are some of the top-line findings from the 101 person survey or download the full results HERE.
When asked to identify the top drivers impacting IT spend in the next 12 months, survey respondents highlighted the need for increased protection against growing cybersecurity threats, a desire to improve the investor/client experience, and the goal of improving efficiencies by refreshing outdated or legacy technology. Cloud computing was identified by nearly 90% of respondents as a planned investment area, with respondents preferring private cloud solutions over the public cloud.
Security Remains Top Private Equity Concern
Seventy (70) percent of private equity firms surveyed experienced three or more cyber issues in the past year, while 29 percent of firms experienced five or more issues during the same time frame. In the past 12 months, firms indicated that they’ve experienced a wide range of cybersecurity issues, most notably malware, worms and viruses (1 in 3 firms), unauthorized access to corporate data (nearly 1 in 3 firms) and hijacking of social media accounts (nearly 1 in 3 firms).
While two-thirds of firms expressed confidence that they are prepared to address cybersecurity risks, cybersecurity budget findings indicate that increased spending is necessary to keep pace with the growing threat landscape.
Evolution of the Private Equity CTO
Survey findings indicate that the CTO/top IT executive at private equity firms may be elevating his/her status across the board. Ninety-three (93) percent of survey respondents believe their firm’s top IT executive is becoming more important to their business, while 85 percent see the CTO becoming more involved in driving the firm to meet regulatory and compliance demands.
The CTO also serves as the Chief Information Security Officer (CISO), with 86 percent of respondents saying the CTO holds top cybersecurity responsibility. Even at funds with more than $2 billion AUM, the CTO wears a dual hat.
About the 2016 Private Equity CTO Survey
The online survey conducted by IDG Research collected information from 101 senior-level executives at private equity firms. Thirty (30) percent of these individuals worked at firms with more than $2 billion in assets under management (AUM); 25 percent had an AUM of $750 million to $1.9 billion; 14 percent had assets of $250 million to $749 million; and 30 percent had assets under $250 million at the time of the survey.
Download the 2016 Private Equity CTO Study here.
This article originally appeared on Eze Castle Integration’s website here.