Cloud adoption to more than double by 2012

noaCloud computing penetration amongst outsourcing users is set to double between 2010 and 2012, according to research from the UKs premier outsourcing organisation, the National Outsourcing Association (NOA).

The report, entitled UK Cloud Computing Adoption, found current desktop cloud computing penetration to be just three per cent. However, the research projects cloud adoption to increase by 78 per cent CAAG between 2010 and 2012 to 10.8 per cent in the desktop environment. Adoption of cloud in the application development and production environments is expected to grow by 35 and 57 per cent respectively by 2012.

Of the main drivers increasing adoption, cost reduction was found to be most important with 82 per cent selecting this as the central contributing factor. The need to refresh or upgrade was also identified as highly important by 68 per cent of respondents. Other important areas included the need to increase scalability of server resources and redeploy budgets at 52 and 50 per cent respectively.

Other important findings include:
74 per cent perceived cloud computing to be highly relevant within their specific sectors
More than half indicated cloud computing is more relevant within production than in development environments
100 per cent of respondents felt the hybrid cloud environment (using a mix of both in-house and external processes) was the most appropriate form for all aspects of IT operations
98 per cent found cloud computing to have its greatest applicability in the desktop/end-user environment

Although cloud computing is expected to grow significantly across all sectors by 2012, there are still a number of factors hindering adoption. Fear of vendor lock-in was highlighted by 92 per cent of respondents while over half voiced concerns over lack of data visibility. Fears over data security and back-up issues also abound, with over three quarters of respondents emphasising these as inhibiting factors.

Martyn Hart, Chairman of the NOA, comments, Cloud computing looks set to continue its march into UK businesses over the next few years. However, it appears there is still a long way to go before cloud become truly ubiquitous as penetration is still fairly low.

Being so new, users will need to ensure they fully understand their options, perhaps by using independent third parties, research or even networking at an NOA meeting.

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