Cloud computing not being adopted due to cost and lack of knowledge

News by Dan Raywood

More than half of UK companies do not understand the idea of cloud computing.

More than half of UK companies do not understand the idea of cloud computing.


According to a survey released by Rackspace, 57 per cent of UK businesses are unaware of the term cloud hosting, compared to 59 per cent in the US.


Of the UK businesses that responded, 43 per cent chose to define it ‘as remote and multiple servers accessed via the internet', while 31 per cent believed cloud hosting was ‘applications via the internet'. However 27 per cent ‘don't know how they would use cloud hosting as part of their IT mix', a statement that a third of US businesses agreed with.


Despite the confusion over what it actually is, 36 per cent of businesses in the UK and 48 per cent in the US are ‘planning or considering using it'. Cost (25 per cent) was the largest deterrent for UK businesses, followed by ‘untested, new technology' (14 per cent) and reliability (15 per cent).


Lew Moorman, chief strategy officer at Rackspace Hosting, said: “Cloud technology is ideal for the current economic climate, but it is vital that businesses understand how it can best serve their organisation.


“At Rackspace we want to provide clearer guidelines on how they can get the most out of this technology as a matter of urgency. Cloud is going to be the hot business topic for 2009 and it is not just IT folk that will need to understand the benefits it brings but people across the business.”


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