Cloud computing lacks a measure of success, survey finds

 

Connecting state and local government leaders

Organizations are struggling with how to measure the payoff for cloud computing, according to a survey conducted by The Open Group.

Organizations are struggling with how to measure the payoff from cloud computing, according to a survey conducted by The Open Group.

More than 60 percent of respondents surveyed say their organizations do not currently have a return-on-investment mechanism in place. The Open Group surveyed 307 cloud specialists at global organizations that ranged in size from fewer than 200 employees or more than 5,000 employees in February and March of 2011.

The survey included government IT professionals, but the results have not been broken out by sector, said a spokesperson for The Open Group, a vendor- and technology-neutral consortium that focuses on the development of IT certifications and standards.

Cloud computing provides on-demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or interaction from the service provider.


Related coverage:

How can you trust a cloud? Verify.


Cloud will continue to be at the forefront of IT discussions due to the potential system optimization and cost savings that are associated with it. However, industrywide motivation and the business impact of cloud implementation remains unclear, the survey states.

“Return on investment is probably the most commonly used measure of success of a technical change," Chris Harding, forum director for The Open Group Cloud Computing Work Group, wrote in a blog on May 9.

Some survey respondents think that cloud ROI should be easy to evaluate and justify. Cost, quality of delivered result, utilization, speed of operation, and scale of operation are the most useful metrics. But only 35 percent have mechanisms in place to measure cloud ROI, as opposed to 45 percent that did not, with the other 20 percent being unsure, Harding said.

“The question on the impact of cloud produced the most striking of the survey’s results,” he said. “While 82 percent said that they expected their cloud initiatives to have significant impact on one or more business processes, only 28 percent said that they were prepared for these changes,” Harding said.

Last year, The Open Group released a white paper, “Building Return on Investment from Cloud Computing,” to give organizations guidance on measuring cloud ROI.

The Open Group plans to do more to develop understanding of the business impact of cloud computing, Harding said. The organization will publish The Open Group Guide to Cloud Computing for Business later this year and will continue to develop the theme at conferences and in the Cloud Computing Work Group discussions, he added.

Federal and state agencies are increasingly moving operations to the cloud, looking to free up data center space, cut maintenance costs and power use, increase the availability of systems for mobile users, and, above all, save money. Also, the Office of Management and Budget requires federal agencies to move three applications to the cloud in the next 12 to 18 months.

Major conclusions of the survey include:

  • A majority of organizations needed buy-in from the CIO or another C-level executive to fund cloud computing initiatives.
  • The main drivers behind cloud computing implementations were cost, resource optimization and timeliness/agility of new services.
  • Most organizations using cloud computing did not have an ROI mechanism in place.
  • Eighty-two percent of survey participants said cloud computing would significantly impact one or more business processes.
  • The top concerns surrounding cloud computing were security, governance, integration issues and ability to cope with business process change.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.