Survey Provides Insight into Cloud Computing Usage

By Jason Bramwell
 
What are organizations looking for in a Cloud solution? What concerns do they have about using a Cloud-based service? How do they view the obstacles associated with this technology trend? These were among the questions asked to more than 500 organizations for the 2013 Outlook on Technology: Cloud Computing Survey from PC Connection
 
While 31 percent of the businesses surveyed reported having no plans for moving to the Cloud, 69 percent reported either already having applications in the Cloud (19 percent) or are somewhere in the process of implementing a Cloud-based service (50 percent). 
 
Of those organizations in the Cloud, only 14 percent are using it for finance/accounting. E-mail/collaboration software (35 percent) was organizations' top functional area for Cloud usage, followed by the IT department (32 percent) and web/e-commerce (31 percent).
 
Fifty-five percent of organizations that have moved to the Cloud or are in the process of implementing a Cloud-based service are most likely using a private Cloud strategy. However, of the 39 percent of organizations likely to use a public Cloud strategy, software as a service (SaaS) is the most popular choice (75 percent). 
 
There are twelve main factors driving businesses to using a Cloud solution: 
  1. Improved data backup services/disaster recovery (42 percent)
  2. Always-available access to applications/data (40 percent)
  3. Cost savings (40 percent)
  4. Reduced on-site infrastructure needed (38 percent)
  5. Scalability/flexibility in the amount of capacity needed/paid for (35 percent)
  6. Long-term IT strategy (35 percent)
  7. Improved mobility for the workforce (33 percent)
  8. Improved productivity (32 percent)
  9. Reduced workload for internal IT department (29 percent)
  10. More storage capacity (25 percent)
  11. Moving capital expenses to operating expenses (21 percent)
  12. Control over the Cloud environment (19 percent)

Additional Key Survey Results

  • Fifty percent of organizations surveyed had an assessment to determine if their environments are suitable candidates for the Cloud, while 41 percent reported they did not have an assessment. Nine percent were not sure. 
  • More than half of respondents (52 percent) said their organization's IT department was responsible for starting Cloud initiatives, followed by C-level executives (34 percent) and non-IT-related business functions (10 percent). 
  • Seventy-three percent of respondents said reliability is the most important factor when choosing a Cloud partner, followed by technical support (64 percent) and price (64 percent).
 
Among organizations with Cloud-based services in place or working toward implementing one, cost savings (51 percent) was the top influencer.
 
There are also ten obstacles organizations cited in regards to moving to the Cloud: 
  1. Security concerns (65 percent)
  2. Integration with current networks/applications/systems (34 percent)
  3. System performance/availability (33 percent)
  4. Legal and regulatory compliance (32 percent)
  5. Lack of standards among Cloud service providers (28 percent)
  6. Lack of visibility into future cost (27 percent)
  7. Managing a vendor/partner (20 percent)
  8. Deciding which applications to move to the Cloud (20 percent)
  9. Implementing policies around which applications can be moved to the Cloud (20 percent)
  10. Difficulty finding a vendor with the needed skill set/offerings (12 percent)
It comes as no surprise that security was the top obstacle to adopting a Cloud strategy; however, this was more of a concern for those with no plans to implement (71 percent) than organizations using the Cloud or implementing a solution (62 percent).
 
Thirty percent of organizations surveyed strongly agree that their IT staff has the skills to deploy or manage Cloud technologies. Organizations are less sure about Cloud technologies freeing up their IT staff to focus on other projects  especially organizations with no plans to implement Cloud. Only 2 percent of those respondents believe a Cloud solution will allow IT staff more free time.
 
Related articles:

You may like these other stories...

K2 Enterprises has announced its 2014 technology awards in 27 categories. The only clear message may have been that there was no clear message in a field marked by many good ideas, but no unanimous winners.The company, which...
We're all about QuickBooks this morning. First, read this late-breaking news from John Stokdyk, editor of AccountingWEB (U.K.), who is attending the QuickBooks Connect conference in San Jose, California. Then, for more...
Technology—specifically internet technology—has a record of disrupting tried-and-true methods of operation in ways that we often don't foresee. Look no further than the recent HBO announcement that they *gasp...

Already a member? log in here.

Upcoming CPE Webinars

Oct 30Many Excel users have a love-hate relationship with workbook links.
Nov 5Join CPA thought leader and peer reviewer Rob Cameron and learn ways to improve the outcome of your peer reviews while maximizing the value of your engagement workflow.
Nov 12This webcast presents basic principles of revenue recognition, including new ASU 2014-09 for the contract method. Also, CPAs in industries who want a refresher on revenue accounting standards will benefit.
Nov 18In this session Excel expert David Ringstrom, CPA tackles what to do when bad things happen to good spreadsheets.