• Service: Advisory, Management Consulting
  • Industry: Technology
  • Type: Survey report
  • Date: 2/5/2013

Aiming for the blue sky 

Aiming for the blue sky
While experience shows that legal and regulatory compliance is often a complex challenge for many organizations and can vary from one operating region and industry to the next, only 18 percent of respondents said it was impacting cloud adoption within their organization.

According to Shahed Latif, a Principal with KPMG in the US, this result is likely to be more a function of complacency or lack of awareness of regulatory challenges and risks than of buyers’ skills or prowess at actually addressing these challenges.

“Ask any executive to list their top three business challenges this year and you are likely to find both cloud and regulation at the top of the list,” noted Shahed Latif. “Yet few seem to be aware of the complex challenges that arise when you combine the two.”

Using a private cloud to enhance compliance

A number of organizations are exploring how private cloud environments may help them solve potential legal and regulatory challenges. Almost a quarter (24 percent) of respondents cited these as reasons for exploring private cloud, particularly respondents in the retail and academia sectors.

Other factors related to legal and compliance were also seen to be increasing private cloud’s perceived value. Almost a third of respondents said their decision to use a private cloud was related to concerns about data loss, privacy and loss of control, while only slightly fewer respondents cited transparency of operational controls.

“It will not be long before regulators start to enforce new rules that will have a significant impact on the way organizations (particularly global ones with cross-border activities) use the cloud.”

- Shahed Latif, KPMG in the US

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