Privacy and Security are Top Concerns of Cloud Platforms
- Nearly nine out of 10 respondents identified security as primary hesitation
- Greater cloud utilization translates to increased focus on bundled offerings
While the use of the cloud-based platforms and systems has become nearly ubiquitous among global businesses, Baker & McKenzie’s latest edition of its Cloud Computing Survey reveals the need for privacy and security remain the top-most concern among potential buyers.
As organizations enter the cloud in ever increasing numbers, the business realities of negotiating and concluding cloud arrangements are evolving around the globe. To track some of the trends in the cloud services market and identify the key concerns of its participants, the online survey solicited the input of C-Suite, senior management, procurement, IT and other personnel involved in the negotiation, sale, purchase or support of cloud services.
“Implementing cloud solutions certainly brings the appeal of ‘better, faster, cheaper’ approaches to everyday computing challenges—but our survey respondents continue to emphasize those benefits can not come at the expensive of security and privacy,” said Anne-Marie Allgrove, Global Chair of Baker & McKenzie's Information Technology & Communications Group. “In fact, as such technology becomes increasingly ingrained in any business, we are seeing buyers looking to more tightly integrate cloud solutions in day-to-day operations, such as with greater ability to audit providers’ platforms.”
Key Survey Findings
- Cloud adoption continues to gain momentum across all regions – Nearly one-third of respondents note implementing cloud solutions as part of a global organization operating in all regions of the world (North America, Asia-Pacific, Europe, Latin America and Africa).
- Flexibility and cost efficiency continue to be top drivers for cloud adoption – Over 88 percent of the respondents noted flexibility and cost savings as the top two most important drivers for their organizations’ growing shift toward the cloud.
- Security remains as top concern – 88 percent of respondents noted security as their primary hesitation to implementing a cloud solution, with privacy noted as a close second with 73 percent of prospective buyers.
- Respondents highly satisfied and looking to increase cloud spending – 87 percent of the respondents posted high satisfaction with their shift toward the cloud and meeting their organizations’ objectives, and nearly half of the total respondents expect their IT spend on cloud technologies to increase over the next 3 years.
- Added regulatory complexity for cross-border enterprises – While organizations today are generally less wary of the cloud’s ability to provide secure and reliable IT environments, over 50 percent of the respondents noted compliance as a key concern in their cloud strategy and over 17 percent were concerned about government surveillance, such concern being twice as higher in Europe than in North America.
- Integration of bundled cloud offering a key trend – Understanding how those various component offerings work together and addressing the complexity of contracting with multiple providers for integrated solutions was identified as an increasing challenge.
- Cloud offerings increasingly part of traditional outsourcings – Contracts must be flexible enough to support both the leveraged structure of cloud offerings and the much more customized requirements of traditional outsourcings.
- Robotic process automation – Parties are increasingly looking at integrating robotic process automation into delivery architectures, raising a host of contracting issues that buyers and providers must address, including service definitions, service level metrics, staffing obligations and pricing structures.