About a third of IT executives globally are tackling with cloud integration and implementation issues, a KPMG survey found.
The survey, which consists of 674 senior executives from 16 countries across the world, found 33 per cent said they are seeing higher than expected implementation costs and 31 per cent are finding that integrating cloud services with existing architecture is more difficult than anticipated.
These challenges were ranked higher than security risks at 26 per cent, intellectual property theft at 21 per cent and legal/compliance at 18 per cent. However, one-third said data loss and privacy risks were a key challenge in cloud adoption.
KPMG Australia’s national head of infrastructure and architecture, Jonathan Taylor, said organisations are still maturing when it comes to moving beyond the realisation of benefits of the cloud and getting into practicalities of deploying cloud services.
“Organisations are traditionally used to working with multiple suppliers but with a traditional set of compute environments and locations,” he said.
“To a certain extend I think there’s a capability challenge in some organisations across all dimensions—the architectural capability within organisations. This is a fairly new area so the way that you design and deploy the applications is still a bit if a learning curve for people. I think from an operations point of view there’s some unfamiliar territory there.
“We think the people and the processes need to evolve and that always is a challenge. It’s not insurmountable by any means but it needs to be taken into consideration when you are planning, and planning the realisation of benefits.”
He said organisations need to look carefully at the suitability of workloads and portfolios to the cloud environments, analyse the total cost of ownership, investigate the hidden costs and analyse the operating model impact of what is being proposed to better prepare for the cloud.
“Implementation issues really can extend the timeline to deploy workload and they can potentially constrain the amount of workload that you are able to deploy to cloud environments, both of which will affect your business case,” he said.
However, the survey found that 70 per cent respondents said that the cloud had already delivered significant efficiencies and cost savings.
Taylor said the benefits still can far outweigh the integration and implementation issues. AMP IT director, Craig Ryman, said the cloud is a “game changer” once organisations put in place operational processes to support their new cloud model.
“It is critical that we realise maximum value from our investment. Beyond a focus on costs, we’ve deliberately taken a strategic, ‘whole of portfolio’ approach, recognising that changes to our operating model will be required to achieve our long-term growth objectives,” he said.
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