Hype around cloud computing has left chief information officers confused about the basics of the concept, a survey has revealed.
Over half of CIOs (53%) fail to see how cloud computing can save them money, according to BT's Enterprise Intelligence survey.
That is despite the fact that the cloud model avoids capital expenditure by providing access to virtualised resources, said the report on the survey of 270 IT executives in 12 countries.
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Many organisations are still in the early stages of adoption despite the availability of cloud services such as unified communications, customer relationship management and virtual datacentres, said Hanif Lalani, chief executive at BT Global Services.
Yet Lalani is confident that as organisations begin to feel the benefits of the economic upturn, proactive measures such as cloud adoption will enhance their ability to deliver strong return on investment in IT and network services.
But the majority of CIOs (57%) and senior executives (53%) surveyed said they were not happy to run applications and store data on servers outside their country for security reasons.
Security concerns are among the biggest barriers to the widespread consumption of cloud services, the survey report said.
Very few CIOs (21%) think that doing business in the cloud is not a security concern.
More than half of CIOs (53%) are concerned about intellectual property being stored in a public cloud because of potential security breaches, and 44% believe they deal with information that is so sensitive it could never be stored in the cloud.
"This is an entrenched position that needs to be overcome by cloud service providers," the survey report said.
But CIOs need to be aware that only 33% of senior executives share their concerns, the report said, which means they may be pressured to move to the cloud despite their own reservations.