Cloud Computing: Security and Privacy Still Concerns

A majority of executives polled by Deloitte (61%) believe Cloud computing will be a transformative technology in the industry and can drive financial benefits, or at least be useful for certain kinds of enterprise services. The executives were polled recently during the Deloitte webcast, “Cloud Computing in the Enterprise: Not If, But When and How?”

Cloud computing enthusiasm was somewhat tempered by executives’ concern over security and privacy, as 35% cited these issues as the largest considerations for adopting Cloud in their organizations. In addition, 22% of respondents identified data controls and ownership, as well as audit and assurance, as key adoption issues.

“Adoption and demand for Cloud services is growing as companies see a real revolution happening on the business side. Expectations for agility and flexibility in business operations have grown in response to the downturn, and in preparation for what comes next,” said Mark White, principal, Deloitte Consulting and the webcast moderator, in a statement. “Cloud services create the possibility of rapid business model innovation, improved service levels and new ways of controlling costs. Executives can also realize financial benefits, including reduced capital expenditures. In addition, business leaders responding to the poll clearly articulated security and data privacy issues as near-horizon hurdles to their viable Cloud adoption strategy.”

Other polling results included:

  • Only 3.8% believed Cloud computing would have no real short-term impact and that it is over hyped.
  • Roughly a quarter of respondents (23%) believed IT servers and storage are the areas that offer the greatest potential for optimization using Cloud. This is followed by IT outsourcing and technology services (18%) and enterprise software/ERP (17.5%).

Chris Weitz, director, Deloitte Consulting, also explained during the webcast how Cloud computing can offer opportunities for new business models in the IT industry, including:

  • Enterprise IT services can become a commodity resource, which can be resold from enterprises to third parties.
  • Cloud-based consortia can combine to present themselves as a larger market presence.
  • Brokers and aggregators will offer “two-way” markets for Cloud resources among enterprises.

“Cloud computing is emerging through the convergence of a variety of trends in information technology―utility computing, virtualization and IT service management model,” said John Hagel, co-chairman of the Deloitte Center for the Edge, in a statement. “Today, it is generally viewed as an attractive new form of low cost IT outsourcing that can also help to turn a fixed cost into a more scalable variable cost. Looking ahead, though, our research indicates that the evolution of Cloud computing will generate four waves of expanding disruption. These can be driven by a complex interplay of segments of customers with unmet business needs, evolving Cloud computing capabilities and new sets of providers emerging to deliver these capabilities.”

Hagel also noted that because Cloud computing has the potential to create significant opportunity for new forms of strategic advantage, both on the provider and subscriber side, it is critical for companies to engage early to build capability and to aggressively pursue the disruptive potential.

To hear the webcast please, visit:


The polling responses came from more than 750 technology executives ranging from upper management to consultant across multiple industries responded to the polling questions during Deloitte’s webcast on October 1.