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“Really? You must be kidding!” If you feel like reacting this way, then let me tell you that it’s absolutely fine! It’s not only you, but there are still many executives who view security as a significant threat to using cloud computing. For example, PwC IT Outsourcing and Cloud Computing Survey in 2011 surveyed 489 business executives globally, out of which there were 476 respondents to the question whether they are considering a shift to cloud-based computing infrastructure. 62% of the respondents to this question rated “Data Security” as serious to extremely serious risk. Few other serious concerns reported were – Data and systems integration, IT governance, and viability of third-party providers. (For our views on integration issues and solutions, please click here).

At the same time, a press release talks about a new study by Microsoft in five geographies, including India. This study says that small and medium sized businesses (SMBs) are gaining significant IT security benefits from using the cloud. (In the PwC’s survey there were 34% of companies which can be categorized as SMBs). The Microsoft’s study was funded by Microsoft but was conducted by ComScore in the U.S., India, Singapore, Malaysia and Hong Kong. The highlights of this study for Indian SMBs are:

1. 64% of the Indian SMBs have experienced higher levels of security since moving to the cloud.
2. 52% said that they spend less time “worrying” about the cyber threats.
3. In addition, they spend 72% less time per week managing security than companies who do not use the cloud.
4. The SMBs using the cloud were 22 times more likely to have reduced their “spend” on managing security as a percentage of overall IT budget.

Furthermore,

1. 61% of the SMBs using the cloud were able to employ staff that directly benefitted sales and business development.
2. 63% were able to invest more in product development.
3. 62% said that they experienced more business agility.

Another press release by Techaisle reports its recent survey of 1000 Indian SMBs across tier1, tier2, tier 3 and tier 4 cities. It says that only 18% of India SMBs are currently using cloud computing whereas India has over 32 million SMEs (SMBs in India are more commonly known as SMEs – small and medium sized enterprises).

So if anything can benefit the bottom line of 18% of SMBs, can it not bring the same results for others? And what do you think about the security threat as a barrier to adopting cloud computing by enterprise clients?