CAMPBELL, Calif. -- (BUSINESS WIRE) -- Bitglass today announced the results of its first annual Cloud Adoption Report that found a majority of companies are delaying deployment of cloud applications due to security and compliance concerns. Among the companies adopting cloud apps strategically, Bitglass found that Google is outpacing Microsoft in cloud-based email adoption.
“We wanted to separate hype from reality with regard to cloud adoption in the enterprise. We found that while more strategic, company-wide adoption of the cloud is starting to take hold, there are still basic security mechanisms that have not been put into place,” said Nat Kausik, CEO of Bitglass. “As new technologies to secure cloud apps gain footing, we expect accelerated adoption to occur, especially among larger companies and those in regulated industries.”
Using real world and survey data aggregated by Bitglass’ data analytics team, Bitglass’ inaugural Cloud Adoption Report sampled 81,253 companies across a range of industries and varying company sizes.
Cloud-based Email is Bellwether of Cloud Adoption
Bitglass found that private companies are more likely to have adopted cloud-based email than public companies. Gmail was adopted by 16.5 percent of private companies sampled compared to 11.9 percent among all companies sampled. Office 365 was adopted by 7.6 percent of private companies sampled, but adoption actually increases to 8.8 percent with publicly traded companies.
“Since public companies are generally larger and older, they are more likely to have history and substantial ties to Microsoft,” added Kausik. “We believe that the lower rate of cloud adoption among public companies is due to additional regulatory and reporting burdens that private companies do not face. Given the compliance and audit capabilities lacking in most cloud apps, we expect third-party security technology will be required to help close this gap.”
Who Is Winning the Cloud Battle? Microsoft versus Google
Of Bitglass’ sample, Google Apps demonstrated a higher adoption rate (16.3 percent) than Microsoft (7.7 percent). However, when accounting for company size, Microsoft matched Google at 8.8 percent with organizations of more than 1,000 employees.
The No. 1 Reason Companies Are Not Adopting Cloud Applications
The leading reason both large-sized companies (more than 1,000 employees) and small to medium-sized companies (under 1,000 employees) are not moving to the cloud is security concerns, according to ChangeWave Research. More than half of large-sized companies (52 percent) and approximately one-third of small to medium-sized companies (33 percent) cite security as their primary concern. In addition, the percentage of companies concerned about security is increasing – not decreasing: While 25 percent of companies expressed concern in October 2011, this figure increased to 42 percent in July 2013.
“Because larger companies have more established IT processes, they generally have a higher amount of paranoia with respect to cloud security issues. However, they also have the largest economic gains to be had from moving to cloud,” stated Kausik.
Bitglass recommends companies take a strategic approach to cloud and suggests five security areas that must be addressed before moving to the cloud:
To access the Bitglass Cloud Adoption Report, visit http://www2.bitglass.com/thefiveessentials-mc.
Bitglass (bitglass.com) enables IT to secure sensitive corporate data in cloud applications and mobile devices while respecting employee privacy. Founded in 2013, Bitglass is based in Silicon Valley and backed by $10M from NEA and Norwest Venture Partners.