Are Security, Cost Concerns Slowing Cloud Adoption?

Are Security, Cost Concerns Slowing Cloud Adoption?

A recent survey conducted by West IP Communications identified some big concerns with cloud services. The majority were cost or security related. Here are the details. 

Cloud technology is currently at the forefront of IT and continues to grow as more companies begin to adopt this technology. However, there are still concerns and misconceptions when it comes to cloud adoption. A recent survey conducted by West IP Communications of more than 300 IT managers identified some glaring concerns with cloud-based file sharing and other forms of cloud services. The majority of concerns were cost or security related, as IT managers were worried that cloud adoption would endanger the company or taper the company’s bottom line.

The survey showed that although the majority of IT managers believed they would be able to make their money back in savings, 46 percent didn’t see their company earning the same ROI. The perception of potential ROI seemed to shift depending on the size of company with 66 percent large businesses, those with IT budgets of $5 million or greater, believing they would make all their money back. There was also a difference of opinion among companies in how long it would take to them to see their full return on investment.

The 54 percent of respondents that expected to receive a full ROI with cloud adoption demonstrated a range of opinions on the time it would take to cover the costs. 41 percent were confident that they would see a full ROI in about five years, 31 percent believed it would take even quicker at two years, and an especially confident 21 percent have faith that it will only take a year to recoup the costs. The top two reasons that IT managers believed they would benefit from switching to cloud services were cost related, reason number one being a reduction in capital expenditures and number two, a reduction in operational expenditures. Cost isn’t the only concern for IT managers, the safety of their information is high importance, as it should be.

A bright side to the survey is that an overwhelming majority of IT managers have no concern with a loss of quality in their service and some believe quality may even improve. Unfortunately, the majority of respondents weren’t as confident they would receive adequate security from cloud communications providers. A concern over security seems to be one of the core discrepancies on cloud adoption, and the reason that many of these companies still have complex on-site service systems that they’re not willing to move past.

Of the 300 IT managers surveyed, 40 percent have plans to move their service to a cloud provider, displaying a clear opportunity for managed service providers to take advantage of and a growing market to work with. What will separate the successful MSPs is their ability to adapt and provide for the concerns of their clients.

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