CIOs still reluctant to adopt cloud, says new survey

A new report from sourcing providers Alsbridge has revealed that, in the UK, cloud computing accounts for only one fifth of the IT budget.

This puts doubt in the thinking that cloud adoption in the infrastructure as a service (IaaS) market is accelerating – or, more particularly, that executives see cloud as the cornerstone of a bright, shiny IT future.

Last month research from Robert Half Technology revealed how cloud computing is the most lucrative skill to have in the IT job market.

Yet this survey, of 50 UK senior IT decision makers, indicates a relatively slow uptake. IaaS is the smallest cloud market in terms of investment, with 20% of respondents using compute and only 14% using storage-based adoption.

That’s not to say companies aren’t in the cloud full stop; 92% of companies are using cloud, with software as a service (SaaS) at 70% uptake and platform as a service (PaaS) at 32% adoption.

Yet IaaS adoption remains low. “Cloud may be a good fit for a small to mid-size business model, but our study reveals that IaaS cloud adoption at a large corporate level is in fact still relatively low,” commented John Sheridan, head of IT outsourcing at Alsbridge.

The research also reveals how there’s a mismatch of consumer expectations. Operational cost savings were a particular issue, with companies expecting 74% saving but only getting a 41% reduction. And it was a similar story with efficiency (59% expected, 35% gained) and software cost savings (74% expected, 63% gained).

The overall story is one of a missed opportunity so far, and recent research has given differing opinions. An IBM study revealed that companies can double their revenue by moving to the cloud, whilst a research paper – which featured IBM and Google – in September affirmed that customers need to be made more aware of what they’re purchasing in a cloud solution.

What do you make of this research, and why do you think CIOs may be reluctant to migrate?

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19 Nov 2013, 11:26 a.m.

Historically surveys have revealed that security is the #1 reason CIOs are reluctant to move to the cloud. However, cloud adoption represents a unique opportunity to re-think, re-design, and operationalize information security and risk management. In this vein, a cloud computing approach should be implemented with the end goal in mind, which allows IT to re-think its overall approach to business agility and innovation. A policy-based approach is key to both of these goals and enabling a truly Cloud Empowered Enterprise™. Rushing to the cloud is not the key here, but rather strategically selecting partners that will assist an organization in getting to its ultimate business goals. For more:
- Shawn Douglass, CTO, ServiceMesh


22 Nov 2014, 8:03 p.m.

Touching back on the “open heart surgery” analogy earlier, organizational leaders are wary of the painful process of implementation. Part of the pain is in the fact that ERP implementations suck up organizational resources for an extended period of time. The good news is, with the cloud this period is measured in weeks and months as opposed to months and years with traditional on-premise solutions.