Recession makes enterprises wary of cloud computing

In spite of its promise to minimize cap ex and control costs, cloud computing adoption is not being helped by the recession. Research among UK businesses that currently use proprietary IT systems by IT consultancy Avenade has uncovered that three-quarters haven't increased their interest in the cloud. 
Along with a more conservative approach caused by the failing economy, trust is cited as a key reason for not engaging with cloud computing. Fears of loss of control and security also rank highly in respondents minds. In addition, of those using some form of cloud computing, only 27% said the recession has encouraged them to make greater use of the technology.
However, cloud computing's older cousin, software as a service (SaaS), is beginning to move beyond its traditional applications according analyst firm Forrester, to newer areas such as IT services management, with collaborative apps being one of the hottest areas. Nevertheless, control and security concerns remain among users. In addition, the SaaS proposition of web conferencing is experiencing growth as the downturn clips business travelers' wings.
Anthony Plewes

After a Masters in Computer Science, I decided that I preferred writing about IT rather than programming. My 20-year writing career has taken me to Hong Kong and London where I've edited and written for IT, business and electronics publications. In 2002 I co-founded Futurity Media with Stewart Baines where I continue to write about a range of topics such as unified communications, cloud computing and enterprise applications.