Companies that tread lightly with cloud computing technology could be at a disadvantage. This study by the Economist Intelligence Unit suggests that organizations which demonstrate a high level of trust in cloud computing perform better financially.
Why is trust so critical? Companies that are willing to extend the full capabilities of cloud computing technology can achieve behavioral and process changes that lead to significant bottom-line results.
Organizations that report a high level of trust in the cloud averaged a 9.1 percent increase in profits over the last year versus the 1 percent improvement noted by companies reporting low trust in the cloud, the Economist reported. So how does the cloud drive business results? Respondents cited the following top three benefits:
- Cost/capital expense reduction
- Ability to scale up or down quickly
- Improved data access.
Other benefits listed include rapid access to the latest software/IT developments, the ability to experiment with or implement new business models and improved employee collaboration.
What Causes Low Organizational Trust of Cloud Computing Technology?
Despite all the benefits, many organizations are hesitant to implement cloud computing technology. The top three reasons cited by respondents include:
- Security issues
- Regulatory and compliance issues
- Inability to integrate with existing systems.
How Do You Build Trust?
Building trust requires a high level of executive buy-in along with confidence that the systems are effective and secure. Organizations must feel confident that their cloud service meets their own internal security standards, notes Norbert Kleinjohann, chief information officer at global engineering giant Siemens.
“We have a regular process to show the compliance of the service, which includes information security, data protection, those types of things,” Kleinjohann says. “What we are doing for cloud services is the same.”
Kleinjohann also suggests starting with “low-hanging fruit” to develop trust throughout the organization. For instance, the company began by introducing cloud-based document storage similar to services employees used personally on the web — but with greater security.
The Google Cloud Platform is utilized and trusted by users of over 4 million applications today. Check out additional insights from the “Trust in Cloud Technology and Business Performance: Reaping benefits from the Cloud” study here.