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
Google+
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
Commentary
Augmented Analytics Drives Next Wave of AI, Machine Learning, BI
Jessica Davis, Senior Editor, Enterprise Apps,  3/19/2020
Slideshows
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
White Papers
Register for InformationWeek Newsletters
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
Slideshows
Flash Poll