Outlook 2016: The Darker Side of Enterprise Cloud Computing

The era of cloud computing is here to stay. Organizations are starting to leverage this groundbreaking industry shift, and a growing number are moving towards it. But adoption of cloud is more complicated than it seems.

While the benefits of enterprise cloud are clear to all, there are still some apparent challenges around its adoption that require evaluation in terms of interoperability and managing risks.

Firstly, getting to the cloud is a journey which doesn’t happen overnight, instead it’s a gradual process. Complex legacy infrastructures, information security and migration of key strategic services are causing some organizations to view cloud as more of a tactical approach, which isn’t fully embedded into the overall business strategy.

According to a recent CSO online report, 70 percent of organizations stated, “It is more complex to manage privacy and data protection regulations in a cloud environment than on premise networks within the organization.”

While cloud-based applications promise increased flexibility and reduced costs, they also present new challenges to the enterprise. With the procurement of each new application, enterprise data becomes segregated into cloud silos, an issue worsened by the increasing number of enterprise vendors in the cloud market and the ease of obtaining such services, according to a few CIOs.

The adoption of other cloud computing models such as PaaS and IaaS, increasing popularity of mobile applications, and growing social media platforms means that data and processes are moving outside the firewall, into the cloud. In light of these recent developments, IT leaders are required to think about integrating their applications with each other and other device effective strategies within the cloud.

Enterprise cloud adoption is growing at an alarming rate with 90 percent CIOs reporting that their agency had moved to the cloud, at least in some capacity. Yet challenges remain. 451 Research explains their survey results — “Despite the increased cloud computing activity, 83 percent of respondents are facing significant roadblocks to deploying their cloud computing initiatives, a 9 percent increase since the end of 2012.”

The genesis of cloud can be traced to the very beginnings of computing. Building on cloud concepts of consolidated investments, network resources and competent distribution, cloud computing has developed into a multibillion-dollar industry. Widespread acceptance, however, has faltered due to vital security issues and associated concerns, such as enterprise cloud adoption, control risks, visibility issues, and knowledge management. The growth and triggers of migrating to cloud are extensively discussed, but what IT leaders need to examine and evaluate are the challenges of enterprise cloud adoption.

The Silver Lining

The future of cloud holds great promises, and it’s no longer a secret that enterprise cloud computing has captivated the industry in recent years with new innovations and business applications.

Studies have shown that cloud usage is growing at a rate of 21.8 percent per year, and showing no signs of slowing down. By 2018, 62 percent of CRMs are expected to be cloud-based. Also, 47 percent of marketing departments will have 60 percent or more of their applications on a cloud platform in the next two years. 

However, this increase is still diminished by a general skepticism for cloud security and performance. Although, over the next few years, as more and more enterprises become aware of the benefits and comforts of using cloud to access their data, it will become a commonplace.

 As businesses become charmed by the easy and instant access to tools and information with cloud, privacy and security issues will soon be forgotten. Ever since the Internet was invented, customers have been cynical of its effect on our privacy, but gradually most have become comfortable with relinquishing it for the sake of convenience. Though it may take some more years to tradeoff convenience level with security and privacy, but that time will come, and cloud computing will become the norm.