Another Study Sees Value in Cloud Computing

Cloud computing is one of those topics that often elicits a mixed reaction in the tech world. Businesses see it as a strong cost savings at a time when they're feverously trying to trim expenses. But many IT admins still have their doubts, expressing worries over the security, safety, and reliability of farming out data and services to cloud provider

Despite any concerns among IT pros, cloud computing is here to stay and is likely to hook itself even deeper into the business world, according to the results of a March survey by Sand Hill Group. As an advisor to market leading companies, Sand Hill interviewed more than 500 IT executives to gauge their opinions and deployment plans on cloud computing. Though certain challenges were found, the survey "Leaders in the Cloud" painted an overall rosy picture of the ability of cloud computing to help cut costs, boost return on equity, improve reliability, and even enhance the image of IT within a company.

The in-depth interviews discovered that cloud computing, though in its early stages, is already benefiting companies. The CIOs surveyed were optimistic that cloud computing can help to better align IT with the needs of the business, always a goal and challenge in any organization. In fact, the primary reason for adopting cloud computing is to meet specific business needs. And the executives said that using the cloud has helped them solve problems faster and cheaper, in turn gaining newfound respect for IT from the business side.

Another key drive for cloud computing cited in the survey was business agility. Almost half of executives interviewed said that cloud solutions help them reach business goals with greater flexibility and innovation. IT can quickly and efficiently tap into the cloud to react to the always changing and growing needs of the business.

In total, 40 one-hour interviews were conducted with IT executives. Among those, 22 interviews were done with CIOSs, VPs, and technology directors at small, medium, and large companies across a variety of industries. But to get the vendor side of the equation, eight interviews with done with executives responsible for cloud products at small and large software companies.

What about the downsides of cloud computing? Sand Hill certainly uncovered concerns over security and integration. There are gaps between the technology itself and the products being offered by vendors as well as cultural and organizational challenges with IT. But Sand Hill believes the value of cloud computing is real and that both customers and vendors should work toward building the right cloud solutions to benefit the business.