Cloud Computing Profit Requires Trust Of Technology - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Cloud
News
7/1/2016
08:05 AM
Connect Directly
LinkedIn
Twitter
RSS
E-Mail
50%
50%

Cloud Computing Profit Requires Trust Of Technology

A Google-backed survey conducted by the Economist Intelligence Unit finds that profiting from cloud computing requires trust in the technology.

10 SaaS Startups Every Enterprise Should Know
10 SaaS Startups Every Enterprise Should Know
(Click image for larger view and slideshow.)

Adopting cloud computing doesn't necessarily improve the bottom line. But cloud computing promotes greater profitability when corporate leaders trust the technology, according to a Google-sponsored report (PDF) from the Economist Intelligence Unit (EIU).

In April, the EIU surveyed 452 senior executives across 10 countries about how their organizations used cloud computing and how they saw cloud technology in terms of security, privacy, reliability, accessibility, scalability, support, cost, and agility.

The survey found that, while 99% of organizations have adopted some level of cloud computing for their IT operations, only 35% of respondents say they have a "very high" level of trust in the technology.

Those reporting high levels of cloud trust also reported an average rise in profits of more than 9% over the past year, compared to 1% among those reporting low levels of trust in the cloud.

In a June 29 blog post, Julien Blanchez, group marketing manager for security and privacy in Google's enterprise group, says the results "show a clear link between an organization’s profitability and [its] trust in the cloud, suggesting cloud adoption alone is not enough to guarantee a positive business impact."

The results are not particularly surprising given that lack of trust in cloud computing represents an obvious barrier to adoption of the technology. When company personnel don't use the cloud technology made available to them, they're not going to see potential benefits.

But there's more to it than that, since utilization of cloud technology alone doesn't assure increased profitability. As the report suggests, trust in cloud computing has some correlation with out-of-the-box thinking -- with a willingness to adopt new processes and business practices.

Enthusiastic cloud adoption can thus be seen as a proxy for willingness to innovate. As might be expected, such operational boldness has a greater chance for business benefits than fear of change.

[With Brexit, will cloud vendors hear London calling?]

"If you trust your tools, you basically use them to the full extent of their capabilities and do things you may not have dared to do," explained Blanchez in a phone interview.

Blanchez said Google backed the study for two reasons.

First, he said, while there's been a lot of research on the potential cost-savings from cloud computing, there has been "no real attention to overall economic performance beyond cost reduction." In addition, he said, while there's plenty of research on the impact of trust at macro-economic levels, which affects states and nations, "We wanted to test if this assumption is true at micro-economic levels, within organizations."

The survey findings underscore that organizations adopting cloud computing need executive commitment to organizational improvement.

"Do not just go to the cloud for cost reductions, or to move from one licensing model to another," said Blanchez. "Go to the cloud with an eye on transformation."

Thomas Claburn has been writing about business and technology since 1996, for publications such as New Architect, PC Computing, InformationWeek, Salon, Wired, and Ziff Davis Smart Business. Before that, he worked in film and television, having earned a not particularly useful ... View Full Bio

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Slideshows
10 Ways to Transition Traditional IT Talent to Cloud Talent
Lisa Morgan, Freelance Writer,  11/23/2020
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Commentary
Can Low Code Measure Up to Tomorrow's Programming Demands?
Joao-Pierre S. Ruth, Senior Writer,  11/16/2020
White Papers
Register for InformationWeek Newsletters
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
Slideshows
Flash Poll