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Rise: Survey reveals cost plays a key role when it comes to Cloud uptake

May 2012 by rise

Uncertainty around the current economic climate is forcing organizations to look at alternatives to on-site IT infrastructures and resources with one-in-three organizations citing managed services as a more affordable option, according to a survey conducted by hosted services provider Rise.

The research carried out at a recent event, surveyed over 100 IT industry representatives, regarding their willingness to embrace Cloud computing.

The results revealed that over one-third of the respondents stated that ‘affordability’ was a key driver when looking to move from on-premise to managed services. Cost was also referenced when it came to the demands of end users considering a migration to the Cloud. The potentially huge cost savings that can be realized by such a move was ranked second highest in a list of various demands.

The results also suggest that while firms are starting to gain a better understanding of Cloud computing, there still exists a level of uncertainty when it comes to the actual adoption. Over 50 per cent of respondents highlighted issues such as a lack of understanding, as well as security and complexity concerns as reasons for not migrating.

The results from the survey also include:

- Almost two-thirds of participants are looking to migrate to the Cloud within the next two years

- 63 per cent of participants identified cost and maintenance as the biggest challenge when it comes to managing existing IT systems

- Over 50 per cent of interviewees stated loss of control and security and storage as barriers to Cloud entry

According to Steve Holford, director at Rise, the results suggest that while uncertainty still exists around Cloud uptake, the cost benefits are forcing organizations to take a more serious look at managed services. “The uncertainty hovering over the financial markets has acted as a bit of a wake up call, forcing people to actively go out and see where savings can be made, and Cloud is most certainly one of those areas.

“The financial commitment that goes with maintaining an in-house IT infrastructure is huge, and Cloud computing represents an opportunity to do away with expensive upgrades and maintenance costs.”

Steve continued: “The low cost adoption of Cloud can potentially lead to enormous cost savings for a business, and in the current climate these can’t be ignored. Instead of buying additional servers and storage devices that are used only a fraction of the time, employees can have access to Cloud applications and only pay for the amount of time actually used. Also, by outsourcing your IT needs you’ll be able to realign and focus on core business activities. We appreciate that a lot uncertainty still exists, and that us why a hybrid Cloud model offering the benefits of a hosted service while keeping sensitive data on site might also be an attractive option.”




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