November 2, 2010
By Charlene O'Hanlon
Cloud computing is unquestionably the buzz term of the decade, encompassing everything from software as a service to virtual infrastructures and beyond. In the SMB space in particular, cloud computing is gaining traction as a viable and affordable alternative to building out networks and adding physical boxes be they servers or appliances on premises.
But despite cloud computings perceived popularity as a technology for all-sized companies, adoption of the technology in the enterprise space has lagged. That does seem to be changing, however: A survey conducted earlier this year by independent research firm LoudHouse on behalf of e-mail vendor Mimecast shows that cloud adoption rates among U.S. businesses hover at about 56 percent, up from 36 percent a year before.
Within the last 12 to 18 months the promises of cloud computing have started to be delivered and more companies are seeing it as a viable alternative to consume infrastructure,” said Aaron Hollobaugh, director of marking and communications at hosting provider Hosting.com.
Still, according to the Mimecast survey, about half of companies are not using cloud computing, and the reasons vary from lingering security fears to the IT department not wanting to give up control of its data. But as Amy DeCarlo, principal analyst at Current Analysis notes, such fears can go with the territory with new technologies.
Its still really early in the adoption curve,” she said. There are things that are happening inside the corporate walls in terms of virtualization, but for the most part [cloud computing] is pretty new. So naturally there is a level of concern and skepticism.”
Indeed, the fresh face of the technology may be off-putting to a number of companies that like their technology broken in and proven before they adopt it, DeCarlo said.
The newness itself is a barrier to some companies,” she said. IT departments are saying, I want to wait and see proof that there is no issue with this technology. And the proof is time. Nobody wants to be the one to say, Lets move x to the cloud, and then have it fail.”
Youth is but one excuse popular with the enterprise crowd in shying away from cloud computing, giving solution providers a run for their money in trying to sell the technology. However, armed with the right information, solution providers can be successful in selling cloud technologies into the enterprise.
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