Cloud Computing Delivering on its Promise, but Doubts Still Hold Back Adoption

The Majority of IT Departments now Use Cloud-Based Applications, with Users Reporting Better Security and Lower Costs


Waltham, Mass., July 22, 2010 – Mimecast®, a leading supplier of cloud-based email security, continuity, policy control and archiving, today announced the results of the second annual Mimecast Cloud Adoption Survey, an annual research report examining attitudes to cloud computing services amongst IT decision-makers in UK and US businesses.  The survey, conducted by independent research firm Loudhouse, reveals that a majority of organizations (51 percent) are now using some form of cloud computing service—and the levels of satisfaction amongst those companies is high across the board.  Conversely, companies not yet using cloud services cite concerns around cost and security.

The survey shows that of those businesses using cloud services, 74 percent say that the cloud has alleviated internal resource pressures, 72 percent report an improved end-user experience, 73 percent have managed to reduce their infrastructure costs and 57 percent of say that the cloud has resulted in improved security.  However, not everyone is convinced: 74 percent of IT departments still believe that there is always a trade-off between cost and IT security and 62 percent say that storing data on servers outside of the business is always a risk.

Highlights from the Research

Cloud Services are now the Norm:
– The majority of organizations now use cloud-based services.  The report found that 51 percent of organizations are now using at least one cloud-based application.  Adoption rates amongst US businesses are slightly ahead of those in the UK with 56 percent of respondents using at least one cloud-based application, compared to 50 percent in the UK.  This is a significant rise from the 2009 survey, when just 36 percent of US businesses were using cloud services.

– Two thirds of businesses are considering adopting cloud computing.  Encouragingly for vendors, 66 percent are now considering adopting cloud-based applications in the future.  Again, US businesses are ahead of the UK in their attitudes to the cloud with 70 percent considering cloud services, compared to 60 percent in the UK.

– Email, security and storage are the most popular cloud services.  62 percent of the organizations that use cloud computing are using a cloud-based email application.  Security and storage are the next most popular, used by 52 percent and 50 percent of organizations with at least one cloud-based service respectively.  Email services are most popular with mid-size businesses (250-1,000 employees), with 70 percent of these organizations using the cloud to support this function.  Smaller businesses (under 250 employees) are most likely to use the cloud for security services, with larger enterprises (over 1,000 employees) most likely to make use of cloud storage services.

Cloud Attitudes are Split Between the ‘Haves’ and ‘Have-Nots’:
– Existing cloud users are satisfied.  Security is not considered to be an issue by existing cloud users: 57 percent say that moving data to the cloud has resulted in better security, with 58 percent saying it has given them better control of their data.  Among current cloud users, 73 percent say it has reduced the cost of their IT infrastructure and 74 percent say it has alleviated the internal resource pressures upon the department.

– Security fears are still a barrier.  Three quarters (74 percent) of IT departments agreed with the statement ‘there is always a trade-off between cost and IT security,’ suggesting that many organizations feel cloud solutions are less secure than more expensive on-premise alternatives, simply due to their lesser cost.  Storing data on servers outside of the business was also seen as a significant security risk by 62 percent.

– IT is concerned that adopting cloud will not initially result in cost savings.  58 percent of respondents thought that replacing legacy IT solutions will almost always cost more than the benefits of new IT.

– Cloud concerns stem from a lack of clarity.  One reason for the negative perceptions of cloud services among non-users seems to be a lack of clear communication from the industry itself.  54 percent of respondents said the potential benefits of cloud delivery models are overstated by the IT industry.

Supporting Quotes

“It is great to see that cloud computing has now been embraced by the majority of organizations,” commented Peter Bauer, CEO and co-founder of Mimecast.  “The fact that more than 50 percent of businesses are now using cloud-based applications – with two thirds currently considering adopting them – is hugely encouraging for the industry and a clear indication that IT is increasingly willing to innovate in order to get better value for money, increased reliability and greater control  of their data.”

“The research shows that there is a clear divide within the IT industry on the issue of cloud computing,” commented Peter Bauer, CEO and co-founder of Mimecast.  “While those organizations that have embraced cloud services are clearly reaping the rewards, there are still a number who are put off by the ‘cloud myths’ around data security and the cost of replacing legacy IT.  It is now up to cloud vendors to educate businesses and end users to ensure that these concerns do not overshadow the huge potential cost, security and performance benefits that cloud computing can bring.”

About the Research
The Mimecast Cloud Adoption Survey was carried out by Loudhouse Research on behalf of Mimecast in June 2010.  The survey polled over 500 IT professionals from a range of businesses and organizations based in the UK and USA.  The full report can be downloaded here: http://www.mimecast.com/barometerresearch2010.

About Mimecast
Mimecast (www.mimecast.com) delivers SaaS-based enterprise email management including archiving, discovery, continuity, security and policy.  By unifying disparate and fragmented email environments into one holistic solution that is always available from the cloud, Mimecast minimizes risk and reduces cost and complexity, while providing total end-to-end control of email.  Founded in the United Kingdom in 2003, Mimecast serves approximately 3,000 customers worldwide and has offices in Europe, North America, Africa, the Middle East and the Channel Islands.

Follow Us!

CloudTweaks

Established in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the excellent CloudTweaks articles are provided by our own paid writers, with a small percentage provided by guest authors from around the globe, including CEOs, CIOs, Technology bloggers and Cloud enthusiasts. Our goal is to continue to build a growing community offering the best in-depth articles, interviews, event listings, whitepapers, infographics and much more...
Follow Us!

6 Responses to Cloud Computing Delivering on its Promise, but Doubts Still Hold Back Adoption

Join Our Newsletter

Receive updates each week on news, tips, events, comics and much more...

Can I Contribute To CloudTweaks?

Yes, much of our focus in 2015 will be on working with other influencers in a collaborative manner. If you're a technology influencer looking to collaborate with CloudTweaks – a globally recognized leader in cloud computing information – drop us an email with “tech influencer” in the subject line.

What is the 12/12 Program?

This program is designed to better handle the thousands of requests we receive from people looking to submit articles. The 12/12 program is the commitment of 12 articles delivered over a 12-month period.  

Wait! What if I just want to submit one article?

Our popular pay as you go sponsorship program provides the flexibility to submit as you wish and is designed for all budgets.

Contributors

Ten Tips For Successful Business Intelligence Implementation

Ten Tips For Successful Business Intelligence Implementation

Ten Tips for Successful Business Intelligence Implementation The cost of Business Intelligence (BI) software goes far beyond the purchase price. Time spent researching, implementing, and maintaining your BI investment can snowball quickly and mistakes are often expensive. Your time is valuable – save it by learning from other businesses’ experiences. We’ve compiled the top ten

Knots And Cloud Service Providers

Knots And Cloud Service Providers

How Do These Two Compare? In Boy Scouts, I learned how to tie knots. The quickest knot you can tie is the slipknot. It’s very effective for connecting one thing to another via the rope you have. It was used in setting up tents, mooring boats to docks temporarily and lifting your food up into

What Ever Happened To Google Glass?

What Ever Happened To Google Glass?

What Ever Happened to Google Glass? It was supposed to be the next big thing in tech so where did it go? Last year you could not go anywhere without hearing about some insane new use for the product and now it seems to have vanished in a plume of smoke. A Lackluster Rollout Back

Posted on by

Big Data

To Have and Have Not: Big Data Initiatives In Developing Countries

To Have and Have Not: Big Data Initiatives In Developing Countries

Big Data Initiatives In Developing Countries The poor of the developing countries are becoming increasingly connected, to the point where they too are part of the Big Data revolution that’s happening across the globe. It didn’t come with laptops, though, as some supposed it would. Whereas it costs a fortune to connect broadband to a

Big Data In Your Garden: Initiatives For Better Understanding Nature

Big Data In Your Garden: Initiatives For Better Understanding Nature

Big Data in Your Garden Big Data and IoT initiatives are springing up all across the globe, making cities, protesters–and just about everything else–smarter. However, thus far there’s been little attention paid to the interactions between these bizarre technologies and living things other than humans. Biology, that is, human biology is one field where Big

Who Holds the Key to the City: Big Data and City Management

Who Holds the Key to the City: Big Data and City Management

Big Data and City Management Cities like New York, Madrid, and especially Rio de Janeiro are augmented with Big Data-powered initiatives that range from combating crime with predictive analytics (New York & Madrid) to providing real-time data for improved management. Although Big Data is no panacea and is mainly used in conjunction with a greater

Internet of Things

Where’s the Capital of the Internet of Things?

Where’s the Capital of the Internet of Things?

Where’s the Capital? We all know the capitals of fashion are London, New York and Paris, while the capital of film is Hollywood (or Bollywood!) – but what’s the new capital of the internet? Specifically, the internet of things? The answer – according to new research by Ozy – might surprise you. It’s not Tokyo, Seoul,

Smart Cities – How Big Data Is Changing The Power Grid

Smart Cities – How Big Data Is Changing The Power Grid

Smart Cities And Big Data As Anthony Townsend argues in his SMART CITIES, even though the communications industry has changed beyond recognition since its inception, the way we consume power has remained stubbornly anachronistic. The rules of physics are, of course, partially to blame, for making grid networks harder to decentralize, as opposed to communication

Aggregated News

Popular News Sources

Microsoft to enter the STRUGGLE of the Human Wrist

Microsoft to enter the STRUGGLE of the Human Wrist

It’s not just a thumb war, it’s total digit war The battle for the future of the human wrist entered a new phase on Monday after it was claimed that tech goliath Microsoft is planning to release its own wearable computer in the coming weeks.…Read the source article at The Register About Latest Posts Follow

Standards Organization ISO Takes on Cloud Computing Standards

Standards Organization ISO Takes on Cloud Computing Standards

Given the quality differences in different cloud services and issues of compatibility, ISO, the world’s best known standards body has issued two standards related to cloud computing…. Read the source article at Web Host Industry Review About Latest Posts Follow Us!CloudTweaksEstablished in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing

IBM Paying $1.5 Billion to Shed Its Chip Division

IBM Paying $1.5 Billion to Shed Its Chip Division

IBM will pay $1.5 billion to Globalfoundries in order to shed its costly chip division. IBM will make payments to the chipmaker over three years, but it took a $4.7 billion charge for the third quarter when it reported earnings Monday. Read the source article at Mashable About Latest Posts Follow Us!CloudTweaksEstablished in 2009, CloudTweaks.com is