CIOs fear poor cloud computing investment could harm competitiveness of businesses

CIOs fear poor cloud computing investment could harm competitiveness of businesses

Over three quarters of chief information officers (CIOs) and chief financial officers (CFOs) are concerned about the risk of enterprises missing out on the financial benefits of implement a cloud computing strategy.

That is the main finding of a new study conducted by Vanson Bourne and commissioned by Canopy – the Atos cloud powered by EMC and VMware.

It found that CFOs currently fear companies may have missed out on an average of €67 million (£53.32 million) in revenues last year by not having the right cloud system in place.

As many as 70 per cent of CIOs and CFOs said they thought their company were risking becoming uncompetitive due to falling behind on such practices. A further 75 per cent said this could happen by 2015, claiming underlying technology infrastructures were not capable of offering an adequate level of support for digital transformation.

The benefits of properly implementing a cloud system are significant, with respondents claiming it could generate double-digit growth by 2015, leading to an average boost in revenue of €123 million.

It also found that nearly two-thirds (64 per cent) of respondents believe a lack of cloud investment is one of the main factors holding back digital initiatives, while a further 90 per cent said there was a need to embrace cloud-based applications and infrastructure if digital transformation strategies are to be successful.

In terms of barriers to cloud adoption, around 50 per cent cited security concerns, while another 44 per cent had concerns about data protection, although the research maintains that there are still a number of benefits to overcoming those obstacles.

"As the survey highlights, digital must be in the DNA of every department to help the business take market share and maximise revenue,” Jacques Pommeraud, chief executive of Canopy, told Computer Weekly.

“From hospitality and retail, through to manufacturing, we see that those emerging as winners are taking advantage of digital capabilities and innovation to build entirely new revenue streams."