KPMG: Cloud Services Providers Confident

December 22, 2012

By Rob Starr, Content Manager, Big4.com

KPMG survey finds providers see cloud revenues comprising significantly larger share of their total revenue due to migration of more sophisticated, critical data-rich applications. 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.
Addressing the expectations gap on cost savings is just one of the interrelated customer challenges emerging as users embrace cloud for more strategic reasons. Providers see the top three challenges as: showing stronger evidence of cost savings (38 percent), devising usage-driven pricing (31 percent) and helping clients develop realistic business cases for switching to cloud (27 percent).

Nearly half of providers say that loss of control is still a business user’s biggest difficulty with cloud adoption followed by data loss and privacy risks, according to 39 percent. Fifty-seven percent of providers say they are addressing the data security issue with tighter restrictions on user access and applying more sophisticated data encryption.

Ongoing challenges with cloud adoption may point strongly to the increasing need for more tightly defined parameters on service level agreements (SLAs).

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