The cloud hangover continues as Irish organisations suffer complexity headache
Research from Sungard Availability Services suggests Irish businesses need to focus on Hybrid IT approach when adopting cloud computing
Dublin, Ireland: 17th June 2015 – Sungard Availability Services® (Sungard AS), a leading provider of information availability through managed IT, cloud and recovery services, today announces research revealing that 40 per cent of Irish organisations believe that deploying cloud solutions has increased the complexity of their IT environment. These findings lead on from the recent revelations that the 'Cloud Hangover' is costing Irish businesses over €100m every year. The research questioned 50 senior IT decision makers in Irish businesses with over 250 employees, and an average cloud spend of €1,099,265 in the last year.
Despite being perceived by many as an IT cure-all for complex and sprawling legacy systems, cloud computing has not been the silver-bullet many anticipated. While decreasing the IT team's day-to-day maintenance was a key driver in cloud adoption for 46 per cent of organisations, 24 per cent of Irish of IT decision makers said that adopting cloud services has made their job more complex.
Increasing Sophistication, Increasing Stress
The findings revealed that cloud adoption has in fact left organisations facing more complexity than ever before. 28 per cent of IT decision makers complained that the cloud has made their job more stressful while just over a quarter (26 per cent) added that their role is now more difficult since deploying cloud. In fact, a staggering 80 per cent of Irish businesses believe that cloud computing has added a new set of challenges and processes to their workload.
Part of the problem may result from an increase in cloud suppliers, with respondents running an average of three separate cloud platforms. Running so many systems is beginning to take its toll with 18 per cent of respondents confessing to concerns that their organisation uses too many platforms.
Causes of complexity
Some of the complexity challenges highlighted in the research include:
- 56 per cent of Irish organisations admitted that staying in control of IT costs was one of their biggest challenges
- 48 per cent said that integrating cloud with their legacy systems was a big challenge
- 34 per cent are finding it difficult to marry cloud deployments with business objectives
- 20 per cent had issues in managing multiple cloud silos
Commenting on the findings, Keith Tilley, Executive Vice President, Global Sales & Customer Services Management at Sungard Availability Services, said: "First cost and now complexity – is it any wonder that Irish organisations have been left somewhat disappointed in their cloud deployments and are now rethinking their strategy?
"In many cases, cloud computing was presented as a silver bullet for the CIO, a way to cut down on administrative processes and allow IT departments to invest their time and resource in innovation and demonstrating technology's role as a business enabler. Instead we can see that IT departments have as much admin work as ever before, if not more. The cloud hasn't eliminated this maintenance work, and in fact, could even be said to have added more pressures for staff when ensuring that systems remains available.
"Of course when deployed in the correct situations cloud computing can have a very positive business impact – helping over a third (34 per cent) of organisations increase business agility, 40 per cent their overall availability and 36 per cent increase their competitive advantage.
"However, despite the benefits, there is still some education to be done in ensuring the market takes a realistic view of cloud. For most organisations, the challenge of deploying cloud correctly – as part of a Hybrid IT strategy that encompasses the whole IT estate means that going it alone is not an option. Working with managed services providers can help businesses adopt a tailored approach to their IT, working with both their legacy environments and cloud systems, to create an environment that is not too complex to manage."
The full report is available to download here.
*About the research
Interviews were carried out in February 2015 by Vanson Bourne on behalf of Sungard Availability Services. 400 interviews were conducted altogether: 150 from the UK, 150 from France and 50 each from Sweden and Ireland. The research spoke to IT decision makers in businesses of over 500 employees in the UK, France and Sweden and 250 in Ireland across a variety of sectors – including financial services, business process management and retail.
The term 'Cloud Computing' was defined in the following ways:
- Private cloud - the cloud infrastructure is provisioned for exclusive use by a single organisation comprising multiple consumers (e.g., business units). It may be owned, managed, and operated by the organization, a third party, or some combination of them, and it may exist on or off premises.
- Public cloud - the cloud infrastructure is provisioned for open use by the general public. It may be owned, managed, and operated by a business, academic, or government organisation, or some combination of them. It exists on the premises of the cloud provider.