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September 2013

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The Good, the Bad, and the Ugly: Analyst Report Reveals Real-World Challenges of Cloud Computing

Much of the marketplace discussion about the benefits of cloud computing has centered around IT efficiency and agility. But what about the business benefits of the cloud? How are business organizations such as yours using the cloud and what are the results? A new independent market research report from Dynamic Markets reveals real-life experiences—both the successes and challenges—of organizations that have actually adopted cloud solutions.

While the report itself contains highly quantitative survey results, the title—Cloud for Business Managers: The Good, the Bad and the Ugly—makes one thing clear: Cloud technology is delivering benefits, but there are challenges and potential pitfalls along the way.

"Everyone talks about the benefits of the cloud, but who really achieves them?" asks Yaldah Hakim Rashid, principal product marketing director, cloud marketing. "This report sheds light on what the cloud means for line-of-business organizations and how they can use the cloud to create benefits."

The report is based on a survey of more 1,300 senior decision-makers at large organizations from around the world. The report's key findings include

  • Cloud solutions make best-in-class business applications accessible. While 32 percent of respondents say the cost of top-of-the range software has been prohibitive, 57 percent agree that cloud computing allows access to top-quality business applications.
  • Cloud integration is a key goal, but has proved difficult. Some 81 percent of respondents believe it is important that cloud applications be fully integrated with each other and with other software in the organization. Yet 50 percent of respondents say they are unable to access cloud data in other departments directly from within the business application used by their own department.
  • Cloud integration problems involve serious costs. Some 54 percent of respondents report that their department has experienced staff downtime in the last six months due to cloud integration problems, and the same percentage report that project deadlines were missed as a result. And half of the organizations abandoned the use of at least one departmental cloud application in the last three years due to integration problems.
  • Security breaches are a major concern. Some 42 percent of respondents have experienced a data security breach in their department associated directly with the use of cloud applications. Respondents are clear that silos increases risk, with 73 percent saying that having cloud data handled externally by one or more cloud vendors makes compliance more difficult. Yet 81 percent were not completely aware that many niche cloud application vendors contract out to other cloud vendors for data management services.
  • Adopters have difficulty ensuring mobile access. More than 80 percent of respondents believe all senior managers should be able to access cloud applications on their mobile devices—and that the apps should be able to talk to each other and integrate business data. Yet 20 percent complain that cloud applications are not usable on mobile devices.

As this survey makes clear, to drive orderly innovation for your business and excel in the marketplace, you need to consider a complete, modern, flexible, and secure cloud that is ready to move when you are.

Why Oracle?
Oracle offers the world’s most comprehensive, secure, and flexible cloud offerings, with an unmatched breadth and depth of products and services. With access to extensive functionality across business processes, Oracle’s cloud customers can solve their business problems using complete solutions that give them end-to-end execution and complete visibility. No information silos, no need to coordinate software upgrades between vendors, integrate data, or manage disparate security policies.

Read the Dynamic Markets report and learn more about Oracle’s full line of cloud solutions.

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