In this ComTech Advisory White Paper, we take a look at the concept of Open Source software in commodity trading. In doing so, we are asking the question, why has this approach not yet been tried? And if it were to be tried, would it help? The white paper is really designed to foster debate around the topic as opposed to take a stance on the issue one way or the other. Acutely aware of the many challenges facing both users and vendors in this fast moving and complex business, ComTech Advisory is always interested in pursuing research into how technology adoption might be improved. The question posed by this white paper is simply this – Is now the time for Open Source CTRM?
Here we are in 2014, almost 20-years after the ETRM and later, the CTRM, software categories were ‘invented’ and in some ways, very little has actually changed. Yes, there has been some vendor consolidation, but for every vendor and solution that has been acquired or gone out of business, at least one new supplier has consequently emerged. We seem to have been writing that ‘there are over 70 vendors of E/CTRM software’ for the last 10-years at least and it’s true – there really are that many in the CTRMCenter software directory. In fact, we have found and added 3-4 new ones this year alone!
Read the document online or download it from the CTRM Center Is Now the Time for Open Source in CTRM
In the last decade, a quiet revolution has occurred within the E/CTRM (Energy/Commodity Trading and Risk Management) software category as vendors and users have increasingly adopted the cloud-computing model. This move has been driven by demand largely for more affordable E/CTRM software as reflected by a lower total cost of ownership. Increasing regulatory and shareholder scrutiny has meant that even smaller commodity traders need to abandon spreadsheets and similar unstructured and difficult to audit tools in favor of more robust solutions. However, even the smallest of commodity trading companies has pretty broad and complex requirements meaning that they actually still require a fully-fledged application to meet their needs, but one that fits within a budget that reflects the size of their business.
In recent years, consumer and business cloud-based applications have begun to catch on and that familiarity does seem to have benefited the E/CTRM in the cloud market as well, as customers are now much more familiar with the benefits than they were 5 years ago. It is important to note that it’s not just the smaller commodity traders that see the potential benefits of a cloud-based solution either. Recent ComTech research suggested that, in general, all buyers of E/CTRM software are increasingly open to considering alternatives to the traditional “on premises” implementation model. While a small, but committed, minority continue to resist anything but the traditional on-premises implementation approach, the overwhelming majority of respondents will consider cloud deployment for a variety of vertical application areas in and around commodity trading.
Read the document online or download it from the CTRM Center Taking the Next Step in CTRM Cloud Solutions