Research has revealed over a third (36 per cent) of UK businesses host less than ten per cent of their IT applications on the cloud. The news comes despite industry experts previously predicting a growth surge in cloud computing during 2015 (*₁).
The study, undertaken by Arlington Research on behalf of StratoGen(*₂), also found almost three quarters (74 per cent) of the 1,000 UK senior business executives surveyed, reported experiencing frustrations with using cloud hosted applications in their day-to-day working environment.
A fifth cited their main frustration with cloud is the high cost, 17 per cent said insufficient availability of applications, 16 per cent pinpointed a lack of IT support when problems occur, while a tenth blamed the amount of downtime.
These mounting frustrations with cloud technology are having a detrimental impact on business growth; 17 per cent of business leaders are concerned their incumbent cloud solutions are preventing their company from growing. In addition, 14 per cent are worried downtime is impacting employee productivity and resulting in a loss of company earnings.
As a result, the frustrations business leaders have with their cloud-based IT applications have led to a third (33 per cent) being ready to remove their business off the cloud completely. Meanwhile, a further 31 per cent are also considering such a move.
Karl Robinson, Chief Commercial Officer at StratoGen, says, “The research highlights a major problem for cloud technology, but in reality the actual ‘pain’ point lies in companies not having the right cloud solution in place from the outset.
“The perceived high cost of cloud hosting is a direct result of the unexpected metered costs businesses are all too often hit with. Migration challenges and the time invested in integrating cloud technology with legacy applications can further increase the cost of cloud computing.
“This doesn’t have to be the case though. A cloud platform should always be fit for a business’s individual needs, with in-built scalability to allow for growth, without surprising cost hikes.
“It is clear UK businesses today have a distinct lack of confidence in the cloud’s ability to deliver the benefits it is capable of. To truly instil trust cloud solutions must prove the business value being provided. Until then, the business benefits of mass cloud adoption will not be realised.
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Notes to editors
*₁KPMG research (2014)
*₂ Include link to whitepaper
About StratoGen Private Cloud
StratoGen Private Cloud is powered by OpenStack technology. The solution delivers the agility and efficiency of a public cloud combined with increased security, control and performance, without businesses having to take on the burden of designing, deploying and managing their own infrastructure.
The technology is designed to scale to the individual needs of growing businesses with API uptime guarantee and 24x7 technical support.
By ensuring there are no large upfront costs with predictable, fixed monthly price and no hidden metered payments, businesses and their customers are given the confidence to put their enterprise data into StratoGen’s hands.
Businesses ultimately benefit from having more time to focus on what they do best: innovating to grow their company and deliver great customer service and value.
About Access Group
StratoGen is part of Access Group, a leading author of fully integrated business management software. The portfolio spans solutions for ERP, finance, HR, Payroll, warehousing, business intelligence, professional service automation and manufacturing. More than 5,000 UK businesses and not-for-profit organisations use Access solutions to improve their performance, profitability and drive growth, unlocking their business potential through improved business insight.
Vertical focus and industry-specific solutions differentiate Access in the market and templated solutions make for rapid and easy deployments. Using Access software to automate operations, streamline processes and share real-time business information anytime, anywhere, businesses can benefit from significant performance improvements.
Access is one of the top five fastest growing UK software developers in The Sunday Times Buyout Track 100 2012 and featured in last year’s Profit Track 100. On-going commitment to excellence, customers and employees has also placed the company among the UK’s top employers in The Sunday Times’ 100 ‘Best Companies to Work For’ 2014.
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