Compliance, Security Issues Complicate Cloud Adoption in Hong Kong

Business realities including compliance issues and security continue to complicate the adoption of cloud computing in Hong Kong’s major enterprises, according to a new global research report looking at the attitudes of organisations to cloud adoption.


Commissioned by NTT Com Security (formerly Integralis), the research reveals that 86 percent of the 50 IT decision makers in Hong Kong organisations of 500+ employees claim that compliance issues have resulted in the cloud being adopted more slowly than they would like. This compared with an average of 76 per cent in the global survey of 700 IT decision makers across the USA/Canada, UK, Germany, Nordics, Singapore, Japan and Hong Kong.


The survey also revealed that Hong Kong places the most emphasis on security (38 per cent) when deploying a new service or changing the delivery of an existing service.


Meanwhile, only 28 percent (compared to a global average of 49 per cent), of Hong Kong organisations have either already moved the majority of their data and services into the cloud or intend to do so within a year.


Hong Kong companies were also less likely than average to think that the cloud is the best delivery method for adhering to stringent regulations.


“Cloud is a well-established and maturing technology, but levels of adoption still vary across different geographies,” explains Catherine Kung, Regional Director at NTT Comm Security.  “The report suggests that when it comes to the big enterprise companies Hong Kong  has fallen behind other markets when it comes to integrating cloud as part of their infrastructure, or moving data and services into the cloud – and it seems the growing challenges of compliance  and security are playing their part in this.”


The report conducted by market research company Vanson Bourne, characterises organisations as fitting into five cloud “personas” defined by their levels of enthusiasm for cloud computing and the extent of adoption. 


Ranging from Controllers at one end of the scale (distinctive by their lack of cloud enthusiasm), the five personas also include Accepters, Experimenters, Believers and Embracers, who are the most cloud-enthusiastic and have benefitted most from its use.


"Globally cloud adoption seems to be based on how quickly issues such as security and cost can be reconciled,” adds Garry Sidaway, Global Director of Security Strategy at NTT Comm Security.  “Once businesses have the right policies in place, they rapidly advance the number of services and applications delivered via the cloud.


“What's interesting though is that it’s possible to see attributes of different cloud personas in each country, even though they were defined globally, with the USA falling into the Embracer and Believer groups and Hong Kong belonging to the Controller and Accepter personas.  But whatever stage businesses are at, cloud is recognised as playing an increasingly important role as companies seek to move into new territories and be competitive on the global stage."


Global differences
Around the world, organisations in the USA/Canada are the most cloud enthusiastic, with 69 percent saying they have already moved, or are looking to move the majority of their data and services into the cloud within the next year, followed by Germany (58 percent).


When it comes to innovation, the USA/Canada also stands out, with 59 percent actively seeking out and experimenting with new and emerging technologies, followed by Singapore (41 percent), Japan (26 percent), Germany (21 percent) and the UK (20 percent).


Cloud adoption has increased in the last two years, with 36 percent of UK companies indicating deployment within one-two years, followed by Germany (34 percent), the USA/Canada and Singapore (31 percent), Japan (25 percent), and Hong Kong and the Nordics (18 percent).


Over 40 percent of USA/Canada respondents say cloud is ‘critical’ to how they deploy and maintain services, compared to 32 percent in Singapore, 29 percent in Germany and 9 percent in the UK.


Singapore (45 percent) places most emphasis on cost as a factor when considering deploying a new service or changing the delivery of an existing service.


Hong Kong places most emphasis on security (38 per cent), followed by the Nordics (36 percent) and UK (33 percent) when considering deploying a new service or changing the delivery of an existing service.


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