Here's Why Public Cloud Adoption Is Still Worrisome

by CXOtoday News Desk    May 28, 2015


At a time when cloud seems to be a popular choice for businesses, almost nine out of 10 CIOs fear the security of their customer data in the cloud, a new report claims. The new study released by the Economist Intelligence Unit (EIU) in conjunction with Hitachi Data Systems found significant outages at the provider level, with well over two-thirds of organizations admitted they had suffered an incident or issue related to their cloud service, with nine percent of this group saying the incident caused ‘high damage’ and  34 percent saying it was a medium threat to their company.

The report found that 36 percent of respondents saying that their public cloud outages were a result of something happening inside their organization at the administration level. Another 29 percent mentioned that their outages were provider related. The remainder of respondents indicated that they were not aware of any outages at all.

One of the immediate problems CIOs are wary of in public cloud adoption is the loss of data due to a data breach: A total 46 percent of the 232 global IT executives surveyed said the loss of customer data was the biggest risk to their organisation, while 40 percent said their main concern was loss of revenue.

The inability to complete integration with existing systems often results in these issues, which indicates that unskilled employees making mistakes - mishandling the confidential data. Moreover, lack of organizational planning for things such as Disaster Recovery is leading to such challenges.“It would be misleading to state that public cloud is always riskier. In the early days of the cloud, users may have experienced greater security issues since the technology was not yet mature and because of their own inexperience,” says the EIU’s report.

 As a conclusion to its research, The EIU identified three best practices for organizations to adhere to when choosing and rolling out their cloud services.

1. Before choosing which services to use, businesses were recommended to vet cloud providers to make sure they meet corporate and IT requirements and choose the right solution for safeguarding against threats - whether with corporate data or customer data.

2. When they choose a solution, they should ensure at the earliest opportunity that the cloud architectures allow integration with existing infrastructures, while the business requirements to offer cloud services should be clearly defined.

3. Finally, organizations should explore the benefits of moving to the cloud outside of cost, taking into account an improvement to business operations, improved innovation and employee efficiency.