Seventy-one per cent of UK businesses are spending 10 per cent or less of their IT budget on cloud services, a new study by KPMG has found.
The 8th Annual “Service Provider and Performance Satisfaction” survey took into account 2,100 contracts that cover £7.8 billion worth of deals. It found the top three reasons UK businesses are shying away from adoption of the cloud are as follows:
- 26 per cent cited concerns around data location, privacy risks and security of the cloud
- 16 per cent said they were worried about regulation and compliance
- 15 per cent were cynical about the ease of integration between cloud and legacy IT systems
The study also found an increase in the level of outsourcing IT services in a bid to improve service delivery, spending savings from HR, sales and financial support to fund this area.
The future of IT outsourcing
43 per cent of those surveyed said they plan to increase spending on outsourcing IT in the next two or three years – however, this is a considerable decrease compared to the previous year’s statistics. In the 7th Annual Report, 77 per cent of respondents said the same.
Why could the cloud boost your business?
Despite the fact that cloud adoption remains slow in many areas, there are tangible benefits to utilising this solution in a business environment.
Cloud computing eliminates the need to purchase expensive hardware and infrastructure for your business, saving you precious funds, in addition to space in your office or server room. The need to buy licenses is reduced as web-based software offers them on an as-you-use basis, allowing you to save on outgoings in this area too.
Beyond the cost, cloud computing boasts advantages in terms of access to information. As long as you have a device with an internet connection, you have the information you require at your fingertips. This improves productivity in terms of mobile working and can have significant benefits for customer service too, as the whole process becomes far more streamlined. Employees on the road have access to the same information as is available on their desktop PC.
File sharing and collaboration is improved, offering teams the ability to work on single documents, rather than tracking changes across multiple drafts, emailed back and forth.
Quite simply, the cloud makes your business more productive, more streamlined and more competitive, saving IT costs and boosting your bottom line.
Find out more about cloud computing with JDM.