UK risks falling behind others as businesses admit data protection and regulation issues are delaying cloud adoption

In this video, Tom Salkield, Director of Professional Services at NTT Com Security outlines the key findings of a new research report commissioned by NTT Com Security.

NTT Com Security's global research covered 700 organisations in the UK, USA / Canada, Germany, Nordics, Singapore, Japan and Hong Kong. The study shows that while over a third (36 per cent) of UK companies have adopted cloud in the last one to two years, almost a quarter (22 per cent) have yet to adopt cloud technology. This is compared to an average of 14 per cent globally.

Although just 10 per cent of UK respondents have already moved the majority of data and services into the cloud, 42 per cent will transition it in the next two years. Yet, 30 per cent of UK respondents admitted that they would never move their data, a figure only topped by the Nordics with 42 percent.

Decision makers in UK organisations admit that issues around data protection, legislation and regulation are responsible for cloud computing being adopted more slowly than they would like.

While just over a quarter (26 per cent) say these issues have been the 'primary reason' for slow adoption, 31 per cent admit they have 'significantly' slowed adoption and 29 per cent say they have affected it 'to some extent' – a total of 86 per cent against an average of 76 per cent across all of the other countries surveyed.

At a global market sector level, Financial Services (36 per cent), Petrochemicals (39 per cent) and Healthcare (27 per cent) organisations are most affected by legislation and regulation issues, citing them as the primary reason for slow cloud take-up.

The report also revealed that all organisations fit into Five Cloud Personas defined by their levels of enthusiasm for cloud computing and the extent of their adoption. Ranging from Controllers at one end of the scale, distinctive by their lack of cloud enthusiasm, the five personas also include Acceptors, Experimenters, Believers, and Embracers who are the most cloud enthusiastic and have benefited most from its use.

The Five Cloud Personas

1.) The Controller – least likely to be using cloud, wedded to data centres and unlikely to experiment with new and emerging technologies. Controllers see no financial gain and cloud is not part of their IT strategy.

2.) The Acceptor – likely to have adopted cloud in the past two years and to adopt technology where there is a clear business case. Cloud is not central to their IT strategy and they are unlikely to see financial benefits.

3.) The Experimenter – likely to experiment with new technologies and to move the majority of services into the cloud in the next year. Used in half or more departments and a quarter of budget is dedicated to cloud.

4.) The Believer – very likely to actively seek out new technologies and to have moved the majority of services into the cloud in the next year. Critical to the deployment of services with a third of budget allocated to it.

5.) The Embracer – has been using cloud for 3+ years, very active in seeking out new technologies, dedicates over half its budget and is very likely to see an increase in revenues and profits from cloud.

Key statistics: Country differences

Organisations in the USA/Canada are the most cloud enthusiastic, with 28 per cent saying they have already moved the majority of their data and services into the cloud, followed by Germany (24 per cent).

When it comes to innovation, USA/Canada also stands out, with 59 per cent actively seeking out and experimenting with new and emerging technologies, followed by Singapore (41 per cent), Japan (26 per cent), Germany (21 per cent) and the UK (20 per cent).

Cloud adoption has increased in the last two years, with 36 per cent of UK companies indicating deployment within that time-frame, followed by Germany (34 per cent), the USA/Canada and Singapore (31 per cent each), Japan (25 per cent), and Hong Kong and the Nordics (18 per cent each).

While on average less than a quarter (22 per cent) of IT budget is dedicated to cloud versus a global average of 29 per cent, UK businesses are still enjoying the financial benefits – 40 per cent acknowledge an increase in revenue and 23 per cent an increase in profits from cloud computing.

Over 40 per cent of USA/Canada respondents say cloud is 'critical' to how they deploy and maintain services, compared to 32 per cent in Singapore, 29 per cent in Germany and 9 per cent in the UK.

Singapore (45 per cent) places most emphasis on 'cost' as a factor when considering deploying a new service or changing the delivery of an existing service. Hong Kong, however, places most emphasis on 'security' (38 per cent), followed by the Nordics (36 per cent) and UK (33 per cent).