Security dampens use of cloud computing

MOST ORGANISATIONS now have a cloud computing adoption strategy, according to a PwC survey, yet security concerns are holding many back from fully embracing the technology.

The survey, which was conducted amongst chief information officers and IT directors at a recent PwC forum, found that three-quarters of respondents had a cloud strategy.

However, many of those said they were using cloud for non-critical systems only, while 20 per cent said they were taking a “wait-and-see” approach.

“Many have commenced a deployment on a pilot basis, dipping their toe in the water,” said Pat Kelleher, director of consulting at PwC. “They’ve often got some non-strategic information or systems that are not extensively used in the department.”

Mr Kelleher said in some cases companies had decided to adopt a cloud strategy for all new projects, with a view to expanding cloud deployment as time went on.

“You could guess that a number of those companies would be more recent companies, recently formed that didn’t have a legacy of older systems,” he said.

“If you don’t start with a long hangover of legacy systems it is easier to adopt a cloud system.”

However, the main thing discouraging broader cloud adoption is security.

The PwC survey found 37 per cent of respondents had a lack of confidence in security and data privacy, while 20 per cent had intellectual property concerns.

Mr Kelleher said security concerns had been decreasing over the years but practicalities had reversed that somewhat.

“Until people started to think seriously about the cloud they maybe didn’t realise that their data would be subject to legislation that they might not have thought about before,” he said.

For those that are adopting the cloud, cost has by far been the biggest driver.

Some 52 per cent of those asked cited a need to reduce IT spend and avoid capital infrastructure investment as a reason for the move.

On the other hand, 17 per cent said the lack of a clear return on investment was a reason for their hesitance.

Mr Kelleher said things were moving in the right direction, and in 10 years’ time the technology would be “part of the woodwork” of business.

He said he did not foresee any “big bang” moment but said there would be a tipping point at which non-cloud systems would be in the minority in most organisations.