Security: The single biggest barrier to cloud computing adoption

10 December 2009 - Research conducted amongst European CIOs has found that 68 per cent of respondents say security fears prevent them from adopting cloud computing services. This concern was especially high in Belgium (79 per cent), Denmark (69 per cent), Germany (68 per cent), Italy (73 per cent), Spain (79 per cent), Sweden (86 per cent) and the UK (74 per cent).

The Colt report, based on research conducted among CIOs and senior IT decision-makers across 13 European countries by leading research firm Portio, also found that performance and the reliability of cloud computing services was seen as a concern (58 per cent), while 47per cent noted that a lack of transparency over pricing models may be halting the adoption of cloud services. Indeed, the fear of being 'locked in' to a cloud computing service would also indicate a preference for subscription-based pricing models.

The main driver accelerating the adoption of cloud services is the need to access data and systems from any location, while factors such as risk mitigation (62 per cent) and innovation (57 per cent) were also seen to be important business issues. Half of respondents (50 per cent) claim that e-mail hosting and the ability to back up critical data is the most used / evaluated service facilitated by cloud computing while a further 40 per cent indicated the ability to access payroll and finance applications along with desktop applications as the key benefit of using cloud computing services.

Even though cloud computing is still in its infancy, the main benefits appear widely understood. 48 per cent of CIOs surveyed said that they believe the main benefit of cloud computing services is to reduce costs. 21 per cent believe the main objective is that companies do not need to own their datacentres, while 19 per cent understand it to be a service which helps companies scale up to meet their business goals.

Breakdown by country

In the UK, nearly 50 per cent of CIOs and their peers confirmed that they are currently using or evaluating email hosting and desktop applications. Notably, 80per cent of respondents said that quality assurance from cloud providers will drive the adoption of cloud computing services and 65 per cent of respondents expect 21-60 per cent of their IT portfolio to move to cloud services within the next 12 months.

In Ireland, almost 80 per cent of CIOs and their peers envisage an increase in cloud computing services in the coming year with nearly 56 per cent predicting 21–40 per cent of their IT budget moving to cloud services.

In France, the ease of transition (77 per cent) and regulation on security for the control of customer data (64 per cent) were cited as the most important factors enabling cloud services adoption by CIOs and their peers. The research also found that a little over one third of respondents anticipate a significant increase in cloud adoption; further, 41 per cent forecast that 21- 40 per cent of their IT portfolio spending will be directed towards adopting cloud computing services.

In Germany, regulation on security for control of customer data (77 per cent) and assurance of access to the latest technology and applications (70 per cent) are significant drivers facilitating cloud services adoption. The research also found that almost all German respondents believe there will be an increase in the adoption of cloud computing services, with nearly 43 per cent expecting a significant increase over 12 months. In addition, over two thirds (67 per cent) of respondents expect 21-60 per cent of their IT portfolio to move to cloud services within the next 12 months.

In Belgium, cost reduction, flexibility and risk mitigation are considered the most critical business issues. However, regulation on security for control of customer data (86 per cent) and assurance of access to the latest technology and applications (71 per cent) are recognised as convincing reasons for increasing cloud services adoption. 43 per cent of respondents said that they expect 21-60 per cent of their IT portfolio to move to cloud services within the next 12 months.

In the Netherlands, two thirds of the participating CIOs and their peers foresee a marginal increase in the adoption of cloud services over the next 12 months. Almost 73 per cent forecast that up to 40 per cent of their total IT spending over the next year would be targeted towards cloud adoption. However, performance and reliability (73 per cent), integration into internal applications (67 per cent) and security (60 per cent) continue to be significant concerns when considering cloud computing services.

In Spain, respondents see a sound potential in cloud, and nearly nine out of 10 CIOs and their peers expect the adoption of cloud services to increase in the next 12 months. A significant proportion (35%) of CIOs and their peers foresee 41–60 per cent of their total IT expenditure to be directed towards cloud services adoption.

In general, cloud computing services are perceived positively in Portugal. 57 per cent of CIOs and their peers anticipate a significant increase in the adoption of cloud services over the next 12 months and the research found that close to 32 per cent of CIOs and their peers expect to spend 41–60 per cent of their total IT expenditure on the adoption of cloud services.

In Italy, 90per cent of CIOs and their peers expect to see an increase in cloud services adoption over the next 12 months, with 48 per cent expecting to spend 21–40 per cent of their total IT expenditure on the adoption of cloud. Italy was also found to have the highest adoption rate of cloud services.

Approximately 85 per cent of Swedish CIOs predicted a growth in cloud computing services over the next 12 months. A similar percentage, 90 per cent, expects cloud services to contribute to up to 60 per cent of their IT budget within the next 12 months.

In Denmark, regulation on security for the control of customer data and the ease of transition ranked as the factors most likely to drive the adoption of cloud computing services. The research also found that nearly 80 per cent of respondents predict an increase in cloud adoption over the next 12 months, with 77 per cent of respondents indicating that they expect up to 60per cent of their IT portfolio to move to cloud in 2010.

In Austria, 80 per cent of respondents believe that regulation on security for the control of customer data and quality assurance are the drivers for the adoption of cloud computing services. In addition, the research found that 50 per cent of Austrian CIOs and their peers predict that up to 20 per cent of their IT spend will be on cloud services; while 44 per cent believe they will spend between 21per cent –40 per cent on cloud services in 2010.

In Switzerland, nearly 80 per cent of CIOs and their peers believe that regulation on security and the control of customer data are key drivers for the adoption of cloud computing services. 62 per cent of respondents predict an increase in the adoption of cloud services over the next 12 months, while 69 per cent said that up to 20 per cent of their total IT budget for the next 12 months would be accounted for by cloud services.

Maggy McClelland, Managing Director of Colt Managed Services said: ”This research has indentified security as the main concern for CIOs considering cloud computing services. Many customers are looking for a closer and transparent relationship with cloud vendors in risk mitigation. Customers are rightly concerned that when using cloud services they still own their data and are responsible for it. It falls to cloud service providers to ensure their customers are confident and knowledgeable about cloud computing services, security and data ownership. More transparency and a joint dialogue with customers will play a significant role in addressing the real concerns over the security, performance and reliability of cloud computing and this is essential if the industry is to evolve with credibility.“

As part of this dialogue, Colt welcomes the recent publication from the European Network and Information Security Agency (ENISA) titled: Cloud Computing: Benefits, risks and recommendations for information security. It provides detailed, practical guidance and recommendations on how to approach the information security benefits and risks of cloud computing.

Colt's managed services solutions are built on its infrastructure combining 25,000km of network and 19 data centres across Europe. This footprint enables Colt to take full end-to-end responsibility for the security, availability and continuity of IT processes and computing capability. Colt's service level agreements are aligned to the customer's business and tailored towards service delivery, not the technology. The company's enterprise cloud platform enables Colt to deliver services that give its customers the freedom to choose when and how to take advantage of managed infrastructure and application services as well as increased flexibility to drive greater levels of business efficiency, security and performance.

Notes to editors

Colt data centres

  • Colt data centres are staffed 24 hours a day, 365 days a year and Colt technical staff manage and monitor customer servers and applications from a Network Operation Centre (NOC)

The Security Operations Centre

  • Staffed by a dedicated team of security specialists 24x7, able to cover a wide range of security issues from Firewalling, Intrusion Detection investigations, Security Event Management and virus infections.
  • ISO 27001 – Colt operates an Information Security Management System which is certified as compliant with the requirements of ISO/IEC 27001.

About Colt

Colt is a leading European provider of business communications. Colt specialises in providing data, voice and managed services to major businesses, SMEs and wholesale customers. Colt operates a 13-country, 25,000km network that includes metropolitan area networks in 34 major European cities with direct fibre connections into 16,000 buildings and 19 Colt data centres.

Colt Telecom Group S.A. is listed on the London Stock Exchange (Colt). Information about Colt and its services can be found at www.colt.net

About the research

Portio Research surveyed companies that had evaluated and adopted cloud computing, and also from the units that had evaluated, but rejected it. The research design suggested surveying CIOs and their counterparts to gather opinions on various aspects of cloud computing.

The survey was conducted among CIOs and their counterparts in August and September 2009 across 13 countries in Europe.

The result is based on online and telephone surveys conducted with 352 respondents who indicated involvement in technology purchasing decisions at their organizations. The respondents included 65.3per cent level one professionals, such as CIO, CTO, S/VP–IT and Head–IT, of IT function reporting directly to the CEO or owner of the company. The remaining 34.7 percent were a mix of level two and three respondents, i.e., professionals reporting to the Head of IT or were a part of the team.

Apart from the two main industries—professional services (51 percent) and the finance sector (27 percent)—interviews were also conducted in media (10 percent) and the public sector, including the education sector (12 percent). Company size distribution included the following: <250 employees: 48 percent, 250–999 employees: 26 percent, >999 employees: 26 percent. A representative split was also maintained across five regions in Europe: Western Europe (32 percent), Southern Europe (32 percent), the UK/Ireland (20 percent), Northern Europe (8 percent) and Central Europe (8 percent). The following countries were covered under the five geographic regions:

  • Western Europe – France, Germany, Belgium and the Netherlands
  • Southern Europe – Spain, Portugal and Italy
  • Northern Europe – Sweden and Denmark
  • Central Europe – Austria and Switzerland
  • The UK and Ireland