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Moving to the cloud more costly than expected for many businesses

(Image credit: Image Credit: TZIDO SUN / Shutterstock)

For more than half of UK businesses, moving to the cloud has proven to be more expensive than expected. This is according to a new report from Capita’s Technology Solutions division.

Despite the cost, however, almost three quarters (72 percent) ranked cloud migration as their top transformational priority. Respondents prioritised migration over automating processes (45 percent) big data analytics (40 percent) and AI/machine learning (31 percent).

Businesses expect to enjoy a range of benefits as a result of cloud migration, including reduced costs (61 percent), improved speed of delivery (57 percent) and increased IT security (52 per cent).

The report also found that larger businesses are struggling to migrate swiftly. Organisations with 5,000 employees and more have migrated less than a third of their workloads and applications, whereas smaller businesses have migrated almost half.

Beyond cost, the survey found businesses are also wary of workload and application re-architecting, security and skills shortages.

Cloud adoption is a critical foundational step towards opening up real transformative opportunities offered by cloud-native technologies and emerging digital platforms and services," said Wasif Afghan, Head of Cloud and Platform at Capita’s Technology Solutions division.

"While some forward-thinking organisations are able to keep their eye on the goal, the complexity of the migration and application modernisation process tends to introduce delays and cost-implications that slow down progress,” he added.