By Rob Starr, Content Manager, Big4.com
Cloud-based services revenue in 2 years is expected to comprise nearly twice its current share of provider revenue, even as providers believe that showing evidence of cost savings is the biggest barrier to cloud adoption, according to the 2012 Cloud Providers Global Survey from KPMG International.
Revenue from business users’ migration to cloud in the coming 2 years will be increasingly for data-intensive applications, such as business and data analytics, content management, customer care, and operations and manufacturing, say providers in the survey. They expect the shift to occur despite users’ ongoing concerns over loss of control and data security, which are in addition to the providers’ challenges of proving savings and the business case.
While about half of providers say that business users are sufficiently knowledgeable about the marketplace for cloud services, almost a quarter believe that customers need to be educated more on the basic aspects of cloud: security, pricing models, relative costs and integration with existing infrastructure. Also, nearly a quarter believe that customers need more information about contractual arrangements such as service level agreements (SLAs).
The knowledge gap may explain the interest in outside assistance, as 60 percent of providers say users turn to a third-party for help with acquiring or implementing technology. Nearly 40 percent of providers say business users employ third-parties for help on the user business strategy. Users also do so, according to providers, for technology implementation (56 percent), business process transformation (45 percent) and information security assistance (41 percent).
The KPMG 2012 Cloud Providers Survey is part of a series of two global KPMG surveys assessing cloud business trends. The providers report is based on the findings of a web-based survey conducted by Forbes Insights of 179 executives from cloud providers from more than 10 countries in North America (51percent), Asia Pacific (29 percent) and Europe, the Middle East and Africa (20 percent). Forty-five percent of those surveyed were C-level executives. In January, KPMG will release the second half of the Cloud Survey series focusing on the cloud business users.