Cloud Service Providers Feeling Confident, Survey Finds

December 17, 2012

While there are lingering questions about security and data ownage, IT service companies are feeling great about cloud computing, as many companies continue to reap the benefits of the technology.

"We can see that cloud deployments have delivered significant benefits for many organizations, but there are still some very real security concerns," said Philip Lieberman, CEO of Lieberman Software.

A recent KPMG study found that revenue for cloud-based IT service companies could double over the next two years, with nearly 60 percent of organizations adopting the cloud to cut costs. Meanwhile, a Lieberman Software survey revealed that 56 percent of IT professionals feel cloud computing has saved their companies money.

Nearly 90 percent of respondents said their organizations had successfully implemented cloud-based services, which 91 percent said has led to increased convenience for IT departments.

According to the KPMG report, 59 percent of IT service companies have cloud-based contracts. Software-as-a-Service applications are currently most common, while the Platform-as-a-Service and Infrastructure-as-a-Service sectors are expected to gain popularity the quickest in the next two years.

Lingering concerns remain
At the same time, cloud vendors and service providers need to address some of the worries IT professionals and company executives have with regard to the cloud – most notably when it comes to security.

While many vendors already have a plan in place to ramp up the security levels of their products, Lieberman thinks they need to do a better job making those measures known.

"Cloud service providers need to demonstrate how seriously they take security and the lengths they are going to in order to safeguard sensitive data from access by unauthorized individuals," Lieberman said.

The KPMG survey found that 57 percent of providers will enhance user access restrictions and increase data encryption sophistication.