Cost of cloud computing higher than expected: KPMG

Typically, businesses resort to cloud-based computing in order to make it easier for them to break into new markets and to achieve a more efficient business process.

However, a survey conducted by professional services firm KPMG International said that one third of 650 organizations polled report that the cost of moving to the cloud was higher than they initially expected.

Expenses ballooned, respondents said, because the required changes to their IT architectures and existing businesses were more widespread that they had prepared for.

At least one quarter of the companies in the survey also labeled as “extensive” the security-related issues they encountered during their cloud implementation. Although these challenges necessitated that business executives and IT departments work more closely together to develop a cloud strategy, in most cases respondents said they did not hinder cloud adoption.

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Problems confronted by the organizations include inability to inability to meet changes required in IT management capabilities, business process, IT configuration, system integration and infrastructure.

Many also blamed confusion and vendor hype for misconceptions about cloud services, what they can deliver and what they entail, KPMG said.

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