The Real Reason Midsize Companies Avoid the Cloud

September 13, 2011   //   News

IT Honchos in Midmarket Companies are Simply Too Busy and Too Broke to Deal with Cloud Computing — Yet

I love surveys that tell you what you already know. In this case, it’s SWC Technology Partners, which surveyed 210 midmarket IT and business leaders and found that cloud computing in the midmarket is still very early in its evolution.

The survey’s not-so-surprising conclusion: “The disconnect between the hype of cloud computing and the actual implementation of cloud computing reared its head in the SWC survey. Only 3.7 percent of respondents said that their company has adopted a cloud computing solution for the entire company. And over half (54.2 percent) of the respondents indicate that their company is not pursuing a single cloud computing initiative. Privacy and security (20.9 percent) were listed as the biggest concern when considering the cloud, followed by cost (9.8 percent).”

First of all, adoption never follows the hype. Indeed, hype typically leads adoptions by a few years. Although we all talk about the wonders of IaaS, SaaS, and PaaS, IT organizations in the real world are trying to get through this latest budget reduction without killing the business. They don’t have the time or the money to deal with cloud computing right now — or any new technology trend, for that matter.
Although security and privacy were cited as reasons not to pursue cloud computing, those are knee-jerk excuses at this point. I don’t believe many of those claiming those factors in busy IT shops could explain the facts behind their assertions. For the most part, it’s IT folklore that provides a quick reason to not do something you don’t have the time or the money for right now.

The sad part is that, in many instances, those midmarket companies would benefit more from the use of cloud computing than larger companies would. However, they are too small to have the resources at the ready to study the proper use of cloud computing — but I suspect that the smarter IT shops will make the time.

This article, “The real reason midsize companies avoid the cloud,” originally appeared at InfoWorld.com.