PAC: Private clouds enhance data security

Users asked about experience with cloud strategies
(PresseBox) (Munich/Cologne, ) According to a recent study by the analysis and consulting firm Pierre Audoin Consultants (PAC), the reluctance to use cloud computing is still due above all to security concerns. At the same time companies which already employ cloud strategies count the enhanced data security as one of the technology's main advantages.

The study on the topic of private cloud computing which was commissioned by Pironet NDH reveals this contradiction between security concerns on the one hand and the actual increase in security on the other. It showed that 75 per cent of IT decision-makers in medium-sized and large companies hesitate to use cloud computing because they mistrust the technology with respect to data security and data privacy. "However, if you ask a company which already has experience with cloud strategies, these concerns are clearly unfounded," says Dr. Katharina Grimme, Principal Consultant Outsourcing & BPO at PAC. "70 per cent of the IT managers state that data security has improved since the technology was introduced." Increasing data security was also one of the main aims of the companies which have already switched to cloud computing. In the study analysts from PAC questioned 107 IT decision-makers about their experiences with private cloud strategies.

Cost reduction of 10 to 30 per cent

As the study shows, other value propositions connected with the introduction of cloud computing have already largely been translated into reality for the companies: 80 per cent of the cloud users state that the availability and performance of the IT systems have increased. For more than three quarters of those interviewed that was the primary goal of implementing the cloud strategy. Cost reductions are only in third place on the priority list for the IT managers. Nevertheless, almost all users were able to achieve savings as a result of introducing private cloud computing, in many cases of between as much as 10 and 30 per cent.

Private cloud popular

When it comes to the question of the correct technology strategy - private or public cloud - private cloud concepts located on the company's own premises are clearly the solution of choice. 71 per cent of companies only consider this type of cloud use. Almost half the companies which operate private cloud systems in-house use them comprehensively, for instance for business-critical applications such as enterprise resource planning (ERP) solutions. More than two thirds of the companies involved in the survey commission an external service provider to set up a private cloud. Thorsten Göbel, Head of Consulting Services at Pironet NDH, comments: "In practice we see time and again that companies increasingly wish to set up a private cloud, but very often the implementation is unsuccessful, and cloud projects threaten to fail without the specialist support of an external service provider."

The study shows that private cloud computing is already an established IT strategy. Furthermore, 15 per cent of the companies surveyed are planning to use an internal private cloud in the future. The use of managed or hosted private cloud strategies, on the other hand, is only in its early stage. Public cloud solutions are already employed by 22 per cent of the companies, although mainly only in marginal or sub-areas. That will not be changing in the immediate future, either. PAC assumes that public cloud strategies will only gradually gain in importance in everyday business applications.

Reluctance due to lack of information

At present 45 per cent of the companies in Germany have a positive attitude towards cloud computing. However, around one third of them are still extremely sceptical. According to PAC, one reason for the continued reticence with respect to the topic of cloud computing is the lack of information. For example, 24 per cent of the IT decision-makers in companies with 500 or more employees regard their knowledge of the technology in general as incomplete.

"Cloud Computing has for a long time not just been media hype, but a firmly anchored topic on the agenda of the decision-makers," states PAC analyst Dr. Grimme. "However, the lack of knowledge about the use of cloud strategies indicates a need for further information." It is the responsibility of cloud providers to point more clearly to the empirical figures gathered to date and to the benefits provided by cloud services.

Cloud computing market will grow to 14 billion euros in 2016

Overall, according to PAC the market for cloud computing will grow strongly in the coming years despite the concerns which some companies still have. PAC states that the expenditure for cloud services, including cloud-related consulting and system integration services, amounted to around five billion euros in 2012. According to the analysts' estimates, the cloud computing market in Germany will increase to 14 billion euros in 2016.

The entire study is freely available at www.business-cloud.de.

You will also find an information chart and a video interview with Dr. Grimme and Thorsten Göbel here.

About Pierre Audoin Consultants (PAC)

From strategy to execution, PAC delivers focused and objective responses to the growth challenges of information and communication technology (ICT) players.

Founded in 1976, PAC is an independent research and consulting firm for the software and ICT services market. PAC helps ICT vendors to optimise their strategies by providing quantitative and qualitative market analysis as well as operational and strategic consulting. We advise CIOs and financial investors in evaluating ICT vendors and solutions and support their investment decisions. Public institutions and organizations also rely on our key analyses to develop and shape their ICT policies.

For more information visit: www.pac-online.de

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