Concerns around security, regulation and integration are the main challenges the enterprise market has around the adoption of cloud-based services, a new study has revealed. 

The vast majority of UK businesses, 71 percent, are spending just 10 percent of their IT budget on cloud services, with the majority still preferring to outsource, research from KPMG has revealed.

When probed, 26 percent cited data location, security and privacy risks as their main concern around the uptake of cloud services, while sixteen percent pointed to regulation and compliance.

A further fifteen percent said they had reservations about the ease with which cloud systems could integrate with legacy IT setups.

The UK findings were pulled from a global study of almost 2,100 business contracts covering deals in excess of £7 billion (€9.5 billion).

Operators continue to talk up the opportunities that cloud services present their enterprise arms.

Last December, T-Systems announced one of the largest cloud contracts it had ever signed in a deal that saw it transfer 80,000 computer workstations and 10,000 server systems at ThyssenKrupp to the cloud.

Jason Sahota, director in KPMG’s Shared Services and Outsourcing Advisory team, said: “Despite widespread acceptance that cloud services offer access to the latest technologies, and make IT more accessible, adoption remains relatively sluggish.

“While concern about the security risks surrounding new technology is understandable it may also be disproportionate, as cloud options are just as safe as other outsourcing solutions.”

However, there may light at the end of the tunnel. Despite increased confidence in the UK economy, only 43 percent of businesses plan to increase spending on outsourcing in the next 2-3 years, compared to 77 percent a year ago.

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