Adopting cloud computing doesn't necessarily improve the bottom line. But cloud computing promotes greater profitability when corporate leaders trust the technology, according to a Google-sponsored report from the Economist Intelligence Unit (EIU).
An April EIU survey of 452 senior executives across 10 countries found that:
- 99% of organizations have adopted some level of cloud computing for their IT
- Only 35% said the have a "very high" level of trust in IT technology
- Those that did have a high level though had an ave. rise in profits of 9% in the past year.
- Compared to 1% from those with low levels of trust in the cloud
The results are not particularly surprising given that lack of trust in cloud computing represents an obvious barrier to adoption of the technology. When company personnel don't use the cloud technology made available to them, they're not going to see potential benefits.
But there's more to it than that, since utilization of cloud technology alone doesn't assure increased profitability. As the report suggests, trust in cloud computing has some correlation with out-of-the-box thinking -- with a willingness to adopt new processes and business practices.
Enthusiastic cloud adoption can thus be seen as a proxy for willingness to innovate. As might be expected, such operational boldness has a greater chance for business benefits than fear of change.
The survey findings underscore that organizations adopting cloud computing need executive commitment to organizational improvement.
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