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Global executives are 'blocking' move to Cloud

Forty per cent of executives have stated that they have no plans to adopt Cloud Computing, claims a report from ISACA.

The fourth ‘Global Status Report on the Governance of Enterprise IT (GEIT)’, conducted by ISACA’s research affiliate the IT Governance Institute (ITGI), found that respondents who do not plan to use Cloud Computing in the near future list security (47 per cent) and privacy concerns (50 per cent) as barriers to adoption, followed closely by legacy infrastructure investments (35 per cent).

The 2011 study polled 834 executives from 21 countries, divided almost evenly between business executives (CEOs, CFOs, and COOs), and IT executives (CIOs and heads of IT). Of the executives who use or plan to use Cloud Computing for IT services, 60 per cent of usage was non-mission critical, and 40 per cent would also trust the Cloud for mission-critical IT services. Organisations are also actively employing outsourcing, with 93 per cent fully or partially outsourcing some of their IT activities, the report suggests.

Of the executives surveyed, 95 per cent consider governance of enterprise IT important. This reveals an almost universally-shared perception of IT as a ‘critical contributor’ to overall business strategy, ‘no matter where the organisation is on the path of GEIT maturity’.

The report’s other key findings include:

  • Value creation of IT investments is one of the most important dimensions of the IT function’s contribution to the business (mentioned by more than 90 per cent of respondents); but challenges exist: increasing IT costs, and an insufficient number of IT staff, are the most common IT-related issues experienced by respondents in the past 12 months.
  • There is a correlation between the position of the head of IT in the enterprise’s hierarchy and the pro-active nature of the IT department. Overall, 70 per cent of respondents noted that the head of IT is a member of the senior management team, but this figure increases to 80 per cent for those enterprises ‘where IT has a proactive role’.
  • Governance of enterprise IT (GEIT) is a priority with most enterprises—only five percent indicated that they do not consider it important. Two-thirds of respondent enterprises have some GEIT activities in place, the most common being the use of IT policies and standards, followed by the employment of defined and managed IT processes. The main driver for activities related to GEIT is ensuring that IT functionality aligns with business needs, and the most commonly experienced outcomes are improvements in management of IT-related risk and communication and relationships between business and IT.

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