Cloud adoption more complicated and challenging than anticipated.

• Author: Heffes, Ellen M.
• Position: TECHNOLOGY

As companies become more comfortable with the benefits of a cloud environment, they are reporting higher-than-expected costs, as well as challenges, with implementation, operations and governance, according to The Cloud Takes Shape, a new survey from KPMG International that polled more than 650 business and information technology leaders across 16 major global markets.

More than half of the organizations polled said they are already working in the cloud, with about one-third reporting that the costs of moving to the cloud were higher than expected. A similar number noted significant implementation challenges.

Rick Wright, KPMG's Global Cloud Enablement program leader and a partner with the U.S. audit, tax and advisory firm, says it appears some companies are only focused on the technology aspects of cloud to the detriment of their core business goals. "One of the most important lessons uncovered by this research is that business process redesign needs to be done in tandem with cloud adoption, if organizations hope to achieve the full potential of their cloud investments."

Analysis of the survey data shows that business executives are moving past cost savings as a final goal for operating in the cloud. Wright notes that other long-term benefits can include more efficient overall processes, flexible operating models and faster speed to market.

In fact, two of the top three cloud objectives identified by more than 20 percent of executives were to enhance new market entry and drive business...