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CIT survey cautions cloud adopters: Be patient, and expect transition costs

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CIT survey cautions cloud adopters:  Be patient, and expect transition costs

A new survey of middle market executives reveals short-term pitfalls of cloud adoption, but cautions execs to be patient.

Middle market executives need to be more cognizant of transition costs when migrating to the cloud, and must be patient to realize anticipated cost savings.

Such is the conclusion of a new survey by Forbes Insights and the CIT Group Inc. of more than 250

senior middle market executives on cloud computing.  

“So far, many organizations have been duplicating existing services or using traditional financing products, preventing cloud from fully delivering on its promises. Just as the first roads were paved over cow paths, today’s cloud-based systems and services are built upon existing  IT infrastructure and processes. Costs will likely fall significantly as companies transition more fully; meanwhile, careful planning may minimize surprises.”

The survey also found that a third of public cloud users underestimated the costs of the cloud, while only about 8% saw lower-than-anticipated costs. 

But cloud is definitely here to stay.  The vast majority of companies surveyed use either the public cloud, a private cloud or a hybrid thereof.  Within the public cloud, 77% of executives surveyed are using it to replace existing applications, and the expansion of Software-as-a-Service (SaaS), Platfom-as-a-Service (PaaS) and Infrastructure-as-a-Service (IaaS) continues apace, with adoption rates of 74%, 34% and 24%, respectively, within the survey population.

The report can be found here.

 

 

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