Stan Lepeak, Director, Global Research, KPMG Shared Services and Outsourcing Advisory

Cloud computing was one of the focus areas in KPMG’s 2Q11 Sourcing Advisory Pulse survey.   While the potential benefits of cloud computing have been loudly touted by both pundits and providers there has been less focus on the practical enthusiasm of the average buyer organization towards cloud computing.  Are they as excited, and occasionally as overly-evangelical, about the potential of cloud computing as many on the sell-side of cloud computing services?

To address this point, KPMG asked the firms’ sourcing advisors and third-party service providers to assess the typical level of “enthusiasm” for cloud computing among both IT and business professionals in end-user organizations. The purpose of this question was to gauge the degree to which business and IT professionals in end-user organizations are approaching cloud computing pessimistically, realistically, or overly optimistically.

In general, both advisors and providers felt that most IT and business professionals were generally realistic about cloud computing, and maintained a healthy degree of skepticism.  Forty-seven percent of advisors and 53 percent of service providers (see Figure 1) polled described IT professional enthusiasm for cloud computing as measured.  Only two percent of advisors and no service provider labeled the typical IT professional as very enthusiastic Business professionals were viewed as a bit more enthusiastic over cloud computing opportunities (see Figure 2).  Only 31 percent of advisors and 37 percent of service providers characterized the average business professionals’ enthusiasm for cloud computing as measured.  Five percent of advisors cited business professionals as very enthusiastic and evangelical.

There is nothing wrong with being enthusiastic about the potential benefits cloud computing can bring an organization, particularly one mired in expensive-to-maintain legacy IT systems that no longer adequately support key business and operational needs. The danger comes when enthusiasm “clouds” clear thinking, planning and assessment of cloud opportunities or is substituted for the required investment in obtaining the capabilities and skills required to take advantage of and optimize cloud computing opportunities.  Here the findings from the Pulse survey and KPMG’s field work with client organizations are more concerning.

Learn more about these trends by reading the full 2Q11 KPMG Sourcing Advisory Global Pulse survey. For more articles and research from KPMG on cloud computing, visit www.equaterra.com/cloud.

Filed under: Cloud Computing, Market Trends and News by EquaTerra