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Will Cloud Computing be a transformative technology in the industry?

By annie shum | November 6, 2009

A majority of executives polled by Deloitte (60.9 percent) believe cloud computing will be a transformative technology in the industry and can drive financial benefits, or at least be useful for certain kinds of enterprise services.

Cloud computing enthusiasm was somewhat tempered by executives’ concern over security and privacy, as 34.6 percent cited these issues as the largest considerations for adopting cloud computing in their organizations. In addition, 22.1 percent of respondents identified data controls and ownership, as well as audit and assurance, as key adoption issues.

“Adoption and demand for cloud services is growing as companies see a real revolution happening on the business side. Expectations for agility and flexibility in business operations have grown in response to the downturn, and in preparation for what comes next,” said Mark White, principal, Deloitte Consulting LLP and the webcast moderator. White added, “Cloud services create the possibility of rapid business model innovation, improved service levels and new ways of controlling costs. Executives can also realize financial benefits, including reduced capital expenditures. In addition, business leaders responding to the poll clearly articulated security and data privacy issues as near-horizon hurdles to their viable cloud adoption strategy.”

Other polling results included:
– Only 3.8 percent believed cloud computing would have no real short-term impact and that it is overhyped.
– Roughly a quarter of respondents (22.7 percent) believed information technology (IT) servers and storage are the areas that offer the greatest potential for optimization using cloud computing, followed by IT outsourcing and technology services (17.9 percent) and enterprise software/ERP (17.5 percent).

posted by John La Place & Charles Zinkowski
About the Polling:

The polling responses came from more than 750 technology executives ranging from upper management to consultant across multiple industries responded to the polling questions during Deloitte’s webcast on October 1.

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