A Walk Through The Public Cloud Is Still Tough

by CXOtoday News Desk    Jun 15, 2015


While cloud computing is becoming popular among enterprises, very few are considering it as part of their formal strategy, especially when it comes to adopting public cloud. The latest figures on European cloud computing adoption, from managed services provider Easynet, shows only one in 10 enterprises are using public cloud.

The research, which polled 660 IT decision makers at companies with more than 1000 employees, found that cloud had been adopted by almost three quarters (74 percent) of European enterprises. In total, almost half (47 percent) used private cloud, compared with 17% utilising hybrid cloud, and the remaining 26 percent naturally staying on-premise.

The study found discrepancies – 17 percent of firms polled in Belgium use public cloud, ahead of the European average – and some less surprising results. The business and consumer services (30 percent) and IT and computer services (21 percent) were most likely to lead the trend towards adoption of hybrid cloud, while banking and financial services were among the most likely to favour private cloud.

Belgium, along with the UK, had the highest proportion of hybrid cloud users, with a 23 percent and 22% score respectively, while the government sector was most likely to opt for on-premise hosting (52 percent).

Elsewhere, a study from managed public cloud provider 2nd Watch has revealed three in five US companies are currently engaged in a big data project, with a further 20 percent soon to begin one. The leading force behind big data projects is predominantly the CEO (32 percent), followed by the CIO (25 percent) and line of business managers (18 percent).

The survey also revealed how strategic imperatives are changing to address the needs of big data deployments. Almost three quarters (71%) of those polled said their company had already adopted a new data warehouse or was considering purchasing one. Established enterprise database vendors, such as IBM (38%), Oracle (31%) and HP (24%) are the most likely choices.

Another new study released by the Economist Intelligence Unit (EIU) and 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,. 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.

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.

Cloud services are likely to face stiff challenges pertaining to data security, vendor lock-in period and less availability of quality IT hardware infrastructure in India. According to a recent report by Research & Markets, the greater challenges would come from the semi-urban regions across the country. Despite the setback, cloud growth and spending will continue at a faster pace than ever.