High Level Of Trust In Cloud Leads To Better ROI

by CXOtoday News Desk    Jul 04, 2016

cloud

Adopting cloud computing doesn’t necessarily improve the bottom line. But cloud computing can become profitable only when corporate leaders trust the technology, according to a Google-sponsored report  from the Economist Intelligence Unit (EIU).

The survey that polled 452 senior executives across 10 countries about how their organizations used cloud computing and how they saw cloud technology in terms of security, privacy, reliability, accessibility, scalability, support, cost, and agility. The survey found that, while 99% of organizations have adopted some level of cloud computing for their IT operations, only 35% of respondents say they have a “very high” level of trust in the technology.

Those reporting high levels of cloud trust also reported an average rise in profits of more than 9% over the past year, compared to 1% among those reporting low levels of trust in the cloud.

It is then clear that lack of trust in cloud computing represents an obvious barrier to adoption of the technology. When company personnel don’t use the cloud technology made available to them, they’re not going to see potential benefits.

The report also found that utilization of cloud technology alone doesn’t assure increased profitability. Trust in cloud computing has some correlation with out-of-the-box thinking, with a willingness to adopt new processes and business practices, it added.

In that sense, the innovative minded CXOs gave greater chances of leading by example The survey findings underscore that organizations adopting cloud computing need executive commitment to organizational improvement.

“Do not just go to the cloud for cost reductions, or to move from one licensing model to another. Go to the cloud with an eye on transformation,” the report mentioned.

Developing a sense of trust in cloud environments depends on the leadership of senior executives, giving employees the support to do their jobs on the cloud, and encouraging employees to experiment with cloud-use to modify organizational behavior in big and small ways, the report said.

The study found that security is the biggest factor keeping organizations from more enthusiastically embracing the cloud, with 45 percent calling it one of the primary barriers to increased cloud-use. Thirty-five percent named compliance and regulatory issues, and 26 percent said it was due to an inability to integrate with existing, on-premises systems. Several other factors were cited by more than one in five respondents, including a lack of common standards, a lack of necessary functionality, and a lack of technical expertise at an organization.