IT leaders still unclear about cloud benefits

Wednesday, October 27, 2010

Despite the much-publicized hype surrounding cloud computing, many IT executives are still unsure about the potential benefits that can be reaped from the technology, new research shows.

According to a recent study by Hubspan, more than 60 percent of companies surveyed said cloud computing was a strategic direction, with 36 percent saying they had at least one Software-as-a-Service or cloud-based application.

The top reason the holdouts gave for not yet moving to the cloud was uncertainty about the potential benefits of the platform.

While this may come as a surprise to many industry observers, given the amount of information and hype surrounding the cloud over the last few years, 451 Group research analyst Sean Hackett told CIO there has been a lot of confusion about what a cloud actually is, let alone its benefits.

Those yet to get on board may find themselves left behind. Hyperstratus CEO Bernard Golden told CIO magazine the best way for people to get information on the benefits of the cloud is to run a pilot project with a plan to answer specific questions.

Despite the confusion, a recent report by AnalysysMason predicts the global market for enterprise cloud-based services will grow from $12.1 billion in 2010 to $35.6 billion in 2015.