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Adoption of Cloud Services Could Move Faster if There Was Less Misperception

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Adoption of Cloud Services Could Move Faster if There Was Less Misperception

May 29, 2015
By Joe Rizzo
TMCnet Contributing Writer

Over the course of the past few years, cloud-based applications are slowly becoming the normal way to operate. Whether people know it or not, a lot of the applications and services we already use in our everyday lives are hosted and running from large scale public datacenters.

Overall, there is still a perception that the cloud is some mysterious location where, “all of my files end up” but I not really sure where that is. On the business side, IT departments understand the cloud and how to use it, so why does there seem to be some hesitance on their part to implement fully-hosted solutions within their organization, specifically for functions like Unified Communications (News - Alert)-as-a-Service (UCaaS)?

West IP Communications is a company that was founded with a singular vision, which is to unite and deploy the most powerful business technologies through a scalable, on–demand, cloud–based communications platform. In an effort to discover why IT administrators are still hesitant, the firm surveyed more than 300 IT managers to get an understanding as to how they view the cloud, as well as how it has or can change the way IT departments deliver telecommunications services to their companies.

Not surprising, it seems that the biggest factor is one of security. In almost any survey about three quarters of responses generally deal with security issues. The problem is that around 55 percent of the respondents feel that their communication service providers cannot provide adequate security options through their cloud-based services.

It seems that even if their communication service providers could be guarantee stringent security measures IT managers would still want to keep some sort of control through either a private cloud solution or possibly some hybrid approach where some services are maintained in-house and others in the cloud.

It should also come as no surprise that once security issues have been addressed, the next major concern is cost. Is moving your telecommunication services to the cloud a cost effective option? The survey reports similar findings as for the security question with 54 percent expecting to see savings. That leaves 46 percent who disagree and feel that it is too early to see a return on their investment.

The cost savings of using cloud-based communication services comes in the form reduced maintenance costs, as well as reduced staff size. Although there is the expectation of cost saving options, the perception is that it will take between two and five years to realize it. A breakdown of the biggest cost reductions is as follows;

  1. reduced capital expenditures
  2. reduced operational

According to West IP Communications (News - Alert), “The overall fact of the cloud is that the reduced investment in IT hardware means fewer assets on the balance sheet and more operating expenses. In general, the cost difference of a hosted versus on-premises solution is roughly 10 percent. Much of the same network and telecom equipment is needed but the cloud offers a safer, more flexible and more easily maintained solution. These are just a few of the factors, along with a frank accounting of cloud telephony services’ benefits that IT managers should consider.”

Edited by Stefania Viscusi

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