Cloud computing is set to grow significantly over the next two years, but cios are still seeking clarity and defined value from vendors. This is according to new research by Xantus Consulting.

Eighty six per cent of those questioned by Xantus felt that vendors are using the term ‘cloud’ generically to sell products and services without being specific about what it means and almost half (45 per cent) appealed for greater differentiation in products.

The company's report, entitled 'A Clearer Horizon? Do cios have more clarity about cloud computing', reveals that 98 per cent of the those questioned from UK companies and public sector organisations have investigated the use of cloud services, almost a quarter are already using them with a further third planning to join them within the next six months, rising to 73 per cent within the next two years.

When equated to budget spend, cloud computing is already taking a reasonable slice of the IT pie, with around a quarter of cios currently spending between 30 and 40 per cent of their budget on cloud-based activities. The majority (76 per cent) felt a return on investment of up to 25 per cent was realistic, with agility, flexibility and business continuity all seen as major benefits of cloud computing.

"It’s clear that everyone has big expectations of cloud and most can see a compelling proposition in the long-term. But vendors still have a significant task in clarifying their message and products as well as demonstrating value to cios wrestling with the technical challenges and other dilemmas of introducing cloud computing to their organisations now,” highlights Mac Scott, associate director and head of architecture at Xantus.