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Outdated budgeting models slowing down cloud adoption

(Image credit: Image Credit: Melpomene / Shutterstock)

More than half (55 per cent) of CEOs in the United Kingdom say outdated capex budgeting models are making it difficult for their companies to adopt cloud services.

This is according to a new study from IT services provider Trustmarque. 

What-s more, almost three quarters (72 per cent) of Chief Information Officers (CIO) have said that having different ways to pay for cloud just makes finding the right solution for their business even more complicated. 

As if too many choices wasn't enough, licensing has made things even more complicated, with almost nine out of ten (87 per cent) of CIOs agreeing that current software licensing issues simply delay moving services to the cloud. The numbers have actually gone up – seven per cent – compared to the year before. 

On top of it all, the report says that necessary skillsets are changing. Almost two-thirds (65 per cent) of CIOs agree that cloud has now made it necessary for IT teams to have a different skillset.

Just half (50 per cent) believe cloud is actually delivering on its promised benefits. One in six (16 per cent) think cloud doesn’t deliver – at all.

“Cloud is now accepted as an essential part of every IT strategy, but in an era of constrained IT budgets – in both the public and private sectors – value for money is top of the CIOs agenda. Therefore, selecting the right payment model and understanding how to budget for cloud is critical,” said James Butler, CTO at Trustmarque. 

“Despite this, it is apparent there is widespread confusion over how to pay for cloud, which is hampering the speed at which organisations can adopt cloud solutions. The ‘on-demand’ nature of cloud, means unmanaged cloud can play havoc with long-term financial plans. CIOs must ensure they retain full visibility and control over their IT estate, across SaaS, IaaS and traditionally licensed solutions, to minimise the unplanned spend that poorly managed cloud infrastructure and services can result in.”

Image Credit: Melpomene / Shutterstock