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

Almost all CIOs (86 per cent) 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 Xantus report, "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 (27 per cent) 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.

Significant dark clouds remain to take the shine off the silver lining…
Physically, the challenge and complexity of integrating cloud applications and data services into existing IT infrastructure is currently the most significant block to implementation. Once 'in The Cloud', in terms of management, compliance and audit (which includes security) are the most significant hurdles.

According to Xantus Associate Director and Head of Architecture, Mac Scott: "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."

"Our research shows that everyone is looking to use cloud in at least part of their IT estate and that part is planned to grow over time. In essence, it’s good news for cloud computing. But one of the biggest questions is how do you make cloud work in the interim, with mixed IT estates, from both a technology and business case point of view?"

As well as the wider research, Xantus also assembled a specialist Panel from its client base of FTSE100 companies or equivalent organisations and government departments. The panel included: Julian Burnett – Chief Technology Officer, Sainsbury’s Supermarkets Pty. Ltd; Mike Naden – IT Director, United Utilities Plc.; Adrian Steel – former Head of Infrastructure Management, Royal Mail; Mick Mitchell – Interim Business Leader, Co-operative Banking Group, Peter Scott – Head of Information and Technology Architecture, Ministry of Justice and Drew Whitehead, Head of IT Architecture, Aviva.

Drew Whitehead, was clear about Aviva's future in cloud computing. He said: "I absolutely expect that in the next 12-24 months we will find ways to leverage our cloud-based services to work more effectively with our partners. Being able to make use of emerging capabilities (through the cloud) and adopting increasingly flexible ways of working will generate competitive advantage. Companies that can’t do this will be disadvantaged."

The report, "A Clearer Horizon? Do CIOs have more clarity about cloud computing?" is available here...