Financial planners who do not use cloud software tend to miss out on five to seven per cent of pure bottom line revenue, according to IT on Cloud.
IT on Cloud chief executive, Andrew Tucker, said there had been a 46 per cent year-on-year take up of cloud software for planners but there were still some reservations on the concept.
"The younger gen is embracing a lot quicker and with open arms. The older generation is still getting their head around what it really is and if it is working," Tucker said.
"It's not so much if it is working but how much it is generating the profitability and how much it is making the business more functional."
Tucker said the planners who had not taken up cloud software often did not have education or knowledge of what it could do and mean for the business.
He noted that these planners had concerns over security and down time during the data migration period.
"That perception of migrating being disruptive is truly not the case if you have a system that works," he said.
"Security in a private cloud is much more secure than physical servers as you can walk into an office and just take out a server."
Tucker said planners who were not embracing the technology were missing out on the ability to be agile, to make products easier and available to their client base, and to have a different revenue stream.