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Data Security, Cloud Sprawl Are Top IT Concerns

By Bob Violino on 2011-06-10


Three years ago, IT services provider Avanade conducted a global survey to quantify the real and perceived business value, as well as the potential pitfalls, of cloud computing as an emerging technology. The company recently commissioned research firm Kelton Research to revisit the topic with a new online survey to determine where cloud computing is in the adoption cycle. Kelton surveyed 573 business and technology executives in 18 countries in March and April 2011 to learn how technology—and particularly cloud computing—is being used in the enterprise. Among the key findings: Cloud computing is maturing as a technology, although there are still widespread concerns about security. The proliferation of cloud services is also creating new pain points for IT executives, including unmanaged “cloud sprawl.” More generally, the survey indicates that technology investment is on an upswing, and companies are facing greater pressure than ever to innovate and grow, rather than save money. As a result, the rate of new technology adoption is also increasing.

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Growing budgets
55% of respondents say their IT budgets will grow in 2011 compared with 2010.

Primary IT focus areas in the next 12 months (percent respondents)
Cloud computing (60%)
Security (58%)
IT consolidation (31%)

74% of respondents say their firms are using some form of cloud services. That represents a 25% increase since Avanade’s September 2009 survey.

Going private
Nearly half of all respondents (43%) say they use private clouds, and another 34% say they will begin to do so in the next 12 months.

More training
64% of respondents say they are investing in training for new and current employees to increase their expertise in cloud technologies.

More spending
74% of respondents say they have allocated up to 30% of their overall IT budget to cloud computing annually. For 10% of resppondents, this means spending $2 million or more on cloud computing each year.

Hesitation
Despite widespread adoption of cloud services, nearly one-quarter of respondents (24%) still say cloud computing currently is not in their plans.

Security concerns
51% of respondents say concern about security is the top reason not to move to the cloud.

Security breaches
Nearly one-fourth of respondents report that their company has had a security breach with a cloud service.

20% of respondents say they have turned off a cloud service in their organization and moved back to on-premise applications, with security concerns the biggest driver for this move.

Cloud sprawl
60% of respondents are worried about unmanaged cloud sprawl. More than one in four respondents don’t have a centralized system to identify and track their IT cloud service providers.

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