Cloud Computing Adoption Blocked by Company Executives

Grazed from Midsize Insider.  Author: Alex Keane.

There is no denying that benefits exist for small and midsize companies that are prepared to invest in cloud-based solutions, as there are obvious cost advantages in out-sourcing certain processes, reducing hardware spend, and allowing flexible scaling as the need arises. However, as indicated on MiBiz, it seems company executives are somewhat confused when it comes to analyzing the possible benefits of cloud computing adoption. A recent survey, "the future of cloud computing," indicates that just 40 percent of those surveyed are experimenting with possible cloud solutions and approximately 25 percent announced that they are awaiting future developments before cloud computing options can even be considered, believing perceived security threats to be the biggest obstacle.

Derrick Harris, senior analyst at GigaOM Pro, indicated that, "Cloud computing is a multibillion-dollar industry today, but many companies are still unclear on which technologies they need, how they work together, who the main vendors are, and how to implement cloud technologies effectively." While this may be true to a certain extent, the fact remains that the biggest influencers when it comes to decisions involving cloud computing adoption will be IT professionals and company executives who are responsible for IT budgets...


IT professionals in small and midsize companies will understand the benefits of cloud-based solutions but will also realize that implementation is a complicated process and not simply a handover of IT processes to a third-party service provider. Company owners and senior executives may determine the cost benefits of such a move with a view to downsizing the IT department. This is perhaps one of the biggest mistakes to make when considering a move to the cloud, as IT staff are still required to ensure that the service provider complies with existing internal IT policies. In fact, cloud computing can even increase IT staffing requirements, as all cloud-based applications will need to interface directly with in-house applications in a way that allows data analysis for multiple departments...

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