07 Nov 2011
Nearly three-quarters (74 per cent) of UK IT managers think that cloud computing has no relevance to their business, according to a report published today by risk consultancy Protiviti.
The survey shows markedly less enthusiasm for cloud among UK IT departments than previous studies. But in keeping with other surveys of this kind, security and privacy concerns are highlighted as the main barriers to adopting cloud services.
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The survey of 100 IT managers from across the UK also found that less than one in 10 (eight per cent) are using cloud for one or two services, while just three per cent of firms have adopted it widely across the business.
"It's surprising that so many IT managers appear to see no value in cloud technology," said Jonathan Wyatt, Protiviti UK managing director.
"At a time when companies are looking at ways to grow while keeping a lid on costs, cloud computing offers a way to significantly reduce overheads and to allow supply to be more directly matched to demand."
The companies most likely to be using cloud-related services are larger companies and those operating in the services sector, according to the report.
The research, carried out in October by Perspective Research Services, reveals security fears as the biggest barrier to the widespread adoption of cloud services, followed by worries around data privacy.
Other barriers include concerns over reliability and availability of services and concerns over business recovery, in the event of failure of a cloud provider.
Protiviti's research reveals that only three in 10 firms are planning to use cloud computing over the next three years, with 16 per cent looking to develop a private cloud service and 10 per cent considering using a public cloud service.
The remaining two per cent of IT managers say that their firms are currently looking at hybrid private cloud services.
Protoviti's research shows less enthusiasm for cloud computing than other recent reports. For example, a study by CompTIA published last month found that nearly one in three small and medium enterprises (SMEs) plan to use cloud computing in the next year.
There is nothing to say that a cloud provider will run at 100% either...so the mantra of 'Look we have SLA's!" But what do you get when the cloud is not functioning...a rebate on lost services? Not going to help a lot for what could be a crippling outage. Same is true for local IT services. Ultimately there isn't a compelling argument to hand over IT because there is no real difference not to mention how does a company know that due diligence maintenance and security is being conducted? I think not meeting an SLA and saying, "Oh bother, here's a chit." has more ramifications than providers like to market.
Posted by: Bert 15 Dec 2011
Working for a cloud provider, I read a substantial amount of white papers regarding ROI of clouds.
It is my understanding that if a company has a built in datacentre and IT staff that are running at 100% efficiency, then the costs attributed to either solution should be equal.
What is forgotten, is when a company IT infrastructure, or duty cycle is not running at 100% efficiency across the board, this is where all the "hidden" costs will grow and grow.
If I was an IT manager, the last thing I would be doing is promoting the cloud, where all of the duty cycles are guaranteed in service level agreements.
Posted by: Cloud Provider 08 Dec 2011
Yes there are benefits to cloud computing, but what happens when your entire IT infrastructure is no longer under your control. What happens when the provider starts jacking the rates...and you know they will. How will your 'agility' and 'adaptability' play out then? That ought to be real fun moving your infrastructure to a new cloud provider. It's just another ruse to wrest control over your IT resources and stiff you with a fat bill. To those that bash their internal IT services, they have no idea what is involved in running an operation and those problems and inefficiencies will not be removed by simply sticking your head in the clouds.
Posted by: Bert 18 Nov 2011
Cloud computing will be the most disruptive change in IT history - greater even than distributed computing. You cannot ask the IT department, you have to ask the business or the CEO. They are all reading articles about "computing on demand" and "increasing adaptability". The CIO can only comply or be outsourced to a company who fulfills the promises. Don't ask a CIO what their company's competitive edge is. They don't speak business and cloud is business.
Posted by: Tim Miner 15 Nov 2011
@John - I was about to comment something similar to you till I read your comment.
I agree with you, well almost.
It varies depending on the company size.
IT Directors/Heads of IT will not be as convinced as they might/should as they know the business thinks its solves problems it doesn't. Equally it introduces issues/risks that the business will not think of/care about until it happens.
IT Managers/Business Systems Managers may think the same way as you had detailed but again they may also not like the idea of the new issues/risks that come with it and that they don't have as much control over.
I think if your business is suitable for the cloud then its an excellent option to take - by suitable I mean ready - mature enough.
This isn't necessarily about size/number of heads, its about where it is in its life cycle and where its going.
Equally some businesses just shouldn't consider it and should make sure the reasons for doing it are not outweighed by the risks/issues introduced.
I think there are bits of every businesses IT that should be located in the cloud, but equally there are bits that should never.
The Business doesn't always see the difference, they just see the reduction is rental cost at domestic Data centre or the ability to turn IT Cupboard into someone's office.
Posted by: Andy H 08 Nov 2011
IT managers dislike the thought of Cloud because they fear that they will become irrelevant. For some reason IT managers fear that a Cloud Services provider is a direct replacement for their job.
IT managers like to ensure that IT is just inefficient enough that they are still relevant, god forbid that an extremely scaleable, secure and cost effective IT solution replaces the cumbersome internal IT systems.
It's not a surprise that turkeys didnt vote for Christams!
Next time lets have a survey of turkey farmers rather than the turkeys!
Posted by: John 07 Nov 2011
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