Cloud Computing Survey: Adoption Prospects Are Hazy

Despite predictions that cloud computing will drive the next wave of technology innovation, many IT decision makers have yet to embrace cloud services, according to an exclusive CIO.com survey of 240 visitors involved in technology purchasing decisions.

Although respondents cited cost savings most frequently as the reason for adopting cloud computing, many aren’t sure such investments will help them to reduce their IT budgets. Half of IT decision makers expect that some percentage of their IT budgets will be devoted to cloud services in the next five years, while slightly fewer (42 percent) anticipate any reduction in IT spending as a result. Another 42 percent aren’t sure they’ll achieve any savings, while 16 percent say they don’t expect any impact on their budgets.

Find the complete survey results here.

Meanwhile, concerns about cloud security are increasing. Fifty-one percent of respondents are worried about cloud security generally, compared to 45 percent answering a similar survey in August 2008.

Thirty-seven percent are now worried about loss of control over data, up from 26 percent last year. But fewer IT buyers now cite concerns about integration and availability.

Among respondents whose companies are using cloud services, the most (83 percent) are running applications using a software-as-a-service model. This year, cost savings surpassed scalability and flexibility to the business as the top reason for adopting cloud computing.

Lower hardware infrastructure and IT staffing/administration costs are among the most frequently cited benefits of cloud services. Forty percent cited access to skills or capabilities they did not want to develop in-house.

But adoption of cloud technology has changed little in the past year. Just over one quarter of IT buyers (27 percent) are currently using or implementing cloud computing offerings, compared to 30 percent in 2008. More respondents (26 percent) plan to use cloud services within five years, up from 18 percent last year.

Carolyn Johnson is CIO’s research manager. Find the complete survey results here.