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Appliance Deployment: Why Are Only 20 Percent of Enterprises Using Or Planning to Use Cloud Computing?
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September 28, 2011

Appliance Deployment: Why Are Only 20 Percent of Enterprises Using Or Planning to Use Cloud Computing?

By David Sims, TMCnet Contributing Editor

Ever wonder what makes some enterprises adopt cloud computing, and what makes others, just as aware of the advantages and benefits, decide not to do so?

According to this NEI (News - Alert) blog post, Infrastructure as a Service providers promise lower cloud computing costs, easy scalability and a high level of security, but still, only 10 percent of U.S. firms have taken the plunge and adopted cloud deployments. More surprising, only 10 percent plan to do so within the next two years.

So, what is it the other 80 percent are afraid of? Is there a good reason why adoption’s been so slow?

This NEI blogger says that according to studies, those adopting a cloud option “accept the premise their costs will be reduced, while those approximately 40 percent of firms well informed on cloud solutions but not adopting them reject the claim their costs will be reduced.”

What that means is that only one out of five people believe the cloud will help to reduce costs. And let’s be honest here -- we’re sure more than twenty percent of companies are running the numbers on this stuff. Hey, maybe cloud just doesn’t work for everybody. That’s fine.

Take the claim of “ease of scalability” frequently made for cloud deployments. Okay, maybe so, but what this NEI blogger is saying is that according to the surveys, most companies shrug and say “Yeah? So what?” It’s not a prime concern of data centers far more concerned about their aging infrastructure.

So maybe rather than stressing cost reductions and scalability, NEI’s blog suggests, “It might be better to demonstrate how cloud deployments can provide state-of-the-art technology and keep equipment on the cutting edge.”

Furthermore, security continues to be a major issue, even with those who use cloud. As the NEI blogger notes, “both adopters and non-adopters consider security a major risk of cloud computing.” Adopters are willing to take that risk, given the other advantages the cloud brings, while non-adopters “seem to believe their own data centers are more secure.”

It’s a bit difficult for us to believe that data would be more secure in a company than with pros whose job it is to ensure data security, but as NEI’s blog says, “perhaps this is more an emotional than rational issue, with non-adopters unwilling to relinquish control.”

No, cloud isn’t for everyone, but good heavens, people, twenty percent? Come on, jump in. The water’s fine.

David Sims is a contributing editor for TMCnet. To read more of David’s articles, please visit his columnist page. He also blogs for TMCnet here.

Edited by Jamie Epstein

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