CIOs more positive about the cloud

There are signs that company CIOs are starting to see the opportunities that cloud delivered services can bring to a business as being more important that the operational issues its implementation might create, if a new survey sponsored by major services provider, Capita, is any guide.

Cloud computing is now regarded as a key enabler to corporate innovation, with organisations benefiting from the efficiency, low costs and flexibility presented by cloud use, according to a new survey by Capita IT Services.

The survey, undertaken on behalf of the company at Strategy Insights’ Advisory Board Meeting with CIOs and IT Directors, covered 35 in-depth interviewswith individuals in board level technology strategy development and decisions across ten different market sectors. It found that 61 percent of them believe increasing innovation and the business’ commercial agility through IT had gained more importance and is now one of their organisation’s highest priorities.

The majority of respondents had moved, or were in the process of moving, into the cloud. This was cited as being a key to increased innovation for two main reasons. One is the simplification cloud offers on operations, especially across business divisions, both in terms of functionality and commercial agreements. The second is the greater flexibility available in commercial contracts with cloud providers. These have evolved and are now more flexible in terms of price and services offered. This is vital due to the short timescales of change in IT.

Respondents also identified various potential pitfalls that they needed to address in order to maximise their cloud investment. These include the continued need to convince a nervous and resistant board that cloud adoption is the best move for the company, and concerns about the potential for hidden costs and whether there are large costs associated with integrating cloud that are not initially accounted for.

They also have concerns over the perception of end-user clients and the challenge of how to communicate to clients that they – along with their data – are going into the cloud.

 “The organisations that we work with are increasingly using IT as a route to innovation. Cloud technology is making the process easier, allowing companies to increase productivity by offering trusted applications on the go and on their choice of device,” said Peter Hands, executive director of Capita IT Services.

“The survey shows that many CIOs do have challenges to overcome to realise the true benefits of cloud, including wider concerns over privacy and security. Companies using Capita Private Cloud benefit from the knowledge that the applications are being used in a secure environment, plus the reassurance of all data being stored in Capita’s UK datacentres.”