SMBs say cloud computing still not safe enough

A new report has confirmed that SMBs believe security and privacy concerns still outweight the benefits of cloud computing.

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SMBs say cloud computing still not safe enough More than 50% of SMBs are adopting server virtualisation, but cloud computing is drawing few takers. (Getty Images)
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By  Imthishan Giado Published  December 22, 2009

More than half of SMBs cite security as the main reason why they are still wary of adopting cloud-computing based environments, according to a report from analysts Forrester Research.

In the report, Enterprise And SMB Hardware Survey, North America And Europe, Q3 2009, 51% of respondents from small and medium-size businesses believe that security and privacy concerns still outweigh the benefits of adopting cloud computing, while 49% of enterprise execs cited similar beliefs.

The report also revealed that adoption of cloud services in general is far behind market projections. Pay-per-use hosting of virtual servers, for example, has only drawn 4% of SMB respondents in the past year, with security again being referred to as the main stumbling block. However, adoption rates of x86 server virtualisation which cuts down on the number of physical servers required - has been unexpectedly strong, with 50% of SMB users using the technology and a further 24% expected to invest in it over the next 12 months.

Tim Harmon, senior analyst for Forrester, commented on the report: "2009 has been a challenging year for hardware and infrastructure technology vendors, but users' 2010 investment plans indicate that this market is set for a rebound next year,". "Despite the hesitancy about cloud computing, virtualisation remains a top priority for hardware technology decision-makers, driven by their objectives of improving IT infrastructure manageability, total cost of ownership, business continuity, and, to a lesser extent, their increased focus on energy efficiency."

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