Customers’ single biggest reason for choosing cloud services is to lower costs, and providers indicate that evidence of cost savings is one of their biggest challenges. Other barriers to adoption include the shift to usage-driven pricing, and the importance of producing a compelling business case for the switch to cloud.
When asked why a customer would use a cloud service, almost 6 out of 10 providers say that cost reduction is a goal, followed by speed to adoption and business process transformation.
The need for a strong business case is further emphasized by the fact that 4 out of 10 providers believe that customer expectations of cloud migration cost savings are “realistic.” The number one customer concern is losing control (voiced by half of the respondents), while integration with existing architecture and data security are also major worries.
For providers, the single biggest challenge in managing data security and privacy is compliance with regulation. Consequently many are shoring up their defences by placing tighter restrictions on user access and making greater use of data encryption, as well as providing real-time threat detection techniques.