Decision-makers get their expected cost savings from cloud, study says
The migration to the cloud is a slow, gradual process that is happening throughout the entire private sector, as large enterprises and small businesses both recognize the possibility of leveraging the next-generation technology. This trend was highlighted in a recent study by Navint Partners, which found many of the hyped advantages of the cloud actually deliver on their promises.
The survey found that reducing hardware costs, for example, is the primary driver behind cloud computing adoption in today's ongoing economic crisis and 90 percent of respondents said they received 100 percent of their forecast values when they leveraged the cloud. If more organizations experience their expected savings, the skepticism regarding cost reductions with the cloud may disappear entirely.
Navint Partners also revealed that nearly two-thirds of respondents said their use of the cloud enabled them to be more efficient streamlining operations, while another 80 percent said the technology gave them a competitive advantage over rival firms. As a result, 46 percent of decision-makers have a budget dedicated solely to cloud services.
"With the cloud, CIOs can have software that suits the business without having to worry as much about hardware and disaster recovery, because you contract a provider who's better at it than you ever will be," said John Robosson, senior partner at Navint.
Are there still inhibitors?
Despite all the positive feedback regarding the use of the cloud, decision-makers are still concerned about the same thing they have always been worried about: security.
The study found that data security and privacy was the No. 1 barrier to public and private cloud adoption. Even though vendors are implementing advanced solutions to keep confidential information safe, many executives have yet to migrate mission-critical resources to the hosted environment for fear of its safety being jeopardized by a lack of protection.
"The security seems to be there today; it will become less of an issue, but people want to see it," said Robert Summers, senior partner at Navint.
A separate report by InformationWeek said companies don't need to jump into cloud deployments with blind faith, as decision-makers can have service providers document proof of security. Executives can even add some of their own data protection tools and negotiate with vendors to have greater control over the virtual environments.
While some issues may still need to be ironed out, cloud computing is a technology that can help companies survive today's ongoing macroeconomic crisis without slowing down.
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