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TMCNet: Cloud Computing a Transformative Technology With Financial Benefits; Security Concerns, Too: Deloitte Poll

[November 05, 2009]

Cloud Computing a Transformative Technology With Financial Benefits; Security Concerns, Too: Deloitte Poll

NEW YORK, Nov 05, 2009 /PRNewswire via COMTEX/ -- A majority of executives polled by Deloitte (60.9 percent) believe cloud computing will be a transformative technology in the industry and can drive financial benefits, or at least be useful for certain kinds of enterprise services. The executives were polled recently during the Deloitte webcast, "Cloud Computing in the Enterprise: Not If, But When and How?" Cloud computing enthusiasm was somewhat tempered by executives' concern over security and privacy, as 34.6 percent cited these issues as the largest considerations for adopting cloud computing in their organizations. In addition, 22.1 percent of respondents identified data controls and ownership, as well as audit and assurance, as key adoption issues.

"Adoption and demand for cloud services is growing as companies see a real revolution happening on the business side. Expectations for agility and flexibility in business operations have grown in response to the downturn, and in preparation for what comes next," said Mark White, principal, Deloitte Consulting LLP and the webcast moderator.

White added, "Cloud services create the possibility of rapid business model innovation, improved service levels and new ways of controlling costs. Executives can also realize financial benefits, including reduced capital expenditures. In addition, business leaders responding to the poll clearly articulated security and data privacy issues as near-horizon hurdles to their viable cloud adoption strategy." Other polling results included: -- Only 3.8 percent believed cloud computing would have no real short-term impact and that it is overhyped.

-- Roughly a quarter of respondents (22.7 percent) believed information technology (IT) servers and storage are the areas that offer the greatest potential for optimization using cloud computing, followed by IT outsourcing and technology services (17.9 percent) and enterprise software/ERP (17.5 percent).

Chris Weitz, director, Deloitte Consulting LLP, also explained during the webcast how cloud computing can offer opportunities for new business models in the IT industry, including: -- Enterprise information technology (IT) services can become a commodity resource, which can be resold from enterprises to third parties.

-- Cloud-based consortiums can combine to present themselves as a larger market presence -- Brokers and aggregators will offer "two-way" markets for cloud computing resources among enterprises.

"Cloud computing is emerging through the convergence of a variety of trends in information technology -- utility computing, virtualization and IT service management model," said John Hagel, co-chairman of the Deloitte Center for the Edge. "Today, it is generally viewed as an attractive new form of low cost IT outsourcing that can also help to turn a fixed cost into a more scalable variable cost. Looking ahead, though, our research indicates that the evolution of cloud computing will generate four waves of expanding disruption. These can be driven by a complex interplay of segments of customers with unmet business needs, evolving cloud computing capabilities and new sets of providers emerging to deliver these capabilities." Hagel also noted that because cloud computing has the potential to create significant opportunity for new forms of strategic advantage, both on the provider and subscriber side, it is critical for companies to engage early to build capability and to aggressively pursue the disruptive potential.

To hear the webcast please, visit: www.deloitte.com/us/dbriefs/futurete.

About the Polling The polling responses came from more than 750 technology executives ranging from upper management to consultant across multiple industries responded to the polling questions during Deloitte's webcast on October 1.

About Deloitte As used in this document, "Deloitte" means Deloitte Consulting LLP and Deloitte Services LP, separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

John La Place Charles Zinkowski Public Relations Hill & Knowlton Deloitte +1 212 885 0630 +1 212 492 4267 charles.zinkowski@hillandknowlton.com jlaplace@deloitte.com SOURCE Deloitte Consulting LLP http://www.deloitte.com/us/about

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