Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Cloud computing's big hurdle: Conquering enterprise IT's risk aversion

By | April 7, 2010, 9:04am PDT

Enterprise technology executives are skeptical about cloud computing and 45 percent of them say that the risks outweigh the benefits, according to a survey.

The survey was conducted by the ISACA, an IT certification, education, governance and enterprise risk and compliance group. ISACA polled 1,809 U.S. members in the U.S. in March. The ISACA has 86,000 constituents in 160 countries.

Here are the two key questions regarding cloud computing:


Now the ISACA survey was heavily weighted toward the insurance and finance industry (28 percent of respondents), but there was nothing in the sample to indicate that the poll was skewed to the overly risk averse. Enterprise technology executives were generally weighing the risks ahead given economic uncertainty and their budgets.

In some respects, the results aren’t all that surprising. There are a few converts to cloud computing—the 17 percent of respondents that say the benefits top the risks—but the silent majority are watching developments, but aren’t going to be revolutionaries.

A few thoughts:

  • Security concerns remain a big hurdle for cloud computing.
  • There’s a lot of server hugging going on out there. Yes, deploying, managing and selecting servers is a pain. But the IT profession has hugged servers for years and won’t let go easily.
  • It’s somewhat alarming that 30 percent of IT professionals didn’t know their company’s cloud computing plan. It makes you wonder whether the finance department will ultimately drive cloud computing plans.
  • A key question in the survey asked the most important driver for enterprise IT’s risk management efforts. Of the respondents, 28 percent said complying with industry and government regulations was the biggest driver. Executives surveyed also wanted to avoid negative incidents (18 percent), align with business needs (21 percent) and manage costs (16 percent). Will regulation and compliance concerns limit cloud computing adoption? Possibly.

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

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Cloud computing's biggest hurdle...
wizard57m@... 7th Apr 2010
convincing everyone that in reality it is NOT
2010, and is actually 1980, and nobody has
the resources to store their own data securely
with complete availability, and that users
prefer to use "dumb terminals" and "diskless
workstations" so they will not have to worry
about such time-wasting activities as Facebook,
Twitter, instant messaging or MMORPGs!

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