Investors increasingly expect hedge fund managers to have best-of-breed technology and applications designed to, among other things, conduct business effectively and efficiently; safeguard the firm’s data; and facilitate compliance with applicable regulations and investor demands. These expectations pose an obstacle for many hedge fund managers because of the significant costs required to implement and maintain a robust technological infrastructure. Cloud solutions have helped to partially alleviate this burden by making numerous applications and functions available online, thus reducing or eliminating the need for a firm to establish and maintain heavy technological infrastructure, as well as the capital, personnel and real estate costs associated with that infrastructure. While particularly attractive for smaller hedge fund managers wishing to minimize the amount of launch capital spent on technology, cloud solutions have also become attractive to larger, more well-established managers seeking cost-savings and other benefits. This two-part series discusses cloud computing solutions for hedge fund managers. The first article defines cloud computing services; outlines key differences between different types of cloud computing solutions; describes the functions available through cloud solutions; and highlights the benefits and risks of using cloud solutions. The second article discusses how to evaluate the various cloud computing solutions and providers; describes best practices in creating and implementing policies and procedures for using cloud solutions; and identifies common mistakes made by hedge fund managers in selecting and using cloud solutions. For more on working with cloud service providers, see “Key Considerations for Fund Managers When Selecting and Negotiating With a Cloud Service Provider” (Sep. 21, 2017).