IT Decision Makers Scared of Cloud Hosting

October 23, 2009; 01:17 PM

VANCOUVER, BC. October 23, 2009: A study commissioned by PEER 1 Network Enterprises, Inc. (TSX: PIX), the global online business hosting provider has found that 88% of IT decision makers do not use cloud technologies, with 39% of respondents claiming that lack of knowledge is putting them off. The independent study which canvassed the opinions of over 200 IT decision makers reveals that concerns about security put off 24% of would-be cloud users, whilst 21% perceive that lack of control outweighs the benefits of cloud hosting.

Despite the concerns, 49% of those surveyed say that they are considering the technology. The availability and reliability of cloud computing are viewed as key benefits for 69% of respondents, whilst another 63% are attracted to its performance benefits. Scalability and flexibility are both factors that appeal to over 60% of potential cloud hosting users, with 43% citing security as being a reason to choose cloud hosting.

Tim Varma, Director of Product Management at PEER 1 commented: “We commissioned this study in order to get a clear view of the perceptions surrounding cloud hosting. We were surprised by the degree to which confusion about the benefits and limitations of cloud hosting seem to prevail, often conflicting with each other. For example, the security of cloud hosting appealed to 43% of decision makers – whilst 23% cite their perceived lack of security as a deterrent.

“More needs to be done to explain the benefits and address the concerns surrounding cloud technologies if the uptake is to accelerate. Cloud can reduce costs and increase flexibility for businesses, which is appealing for any IT decision maker. The industry needs to work together to provide standards that will address concerns around security and compliance.” 

PEER 1 this year launched its CloudXcelerator™ program to foster and support the growth of cloud computing. The CloudXcelerator™ program allows qualifying partners to develop, test and run cloud applications on PEER 1’s high performance 10GB SuperNetwork™ infrastructure, helping them to bring cloud innovations to fruition faster, more reliably and more cost-effectively.

Sinclair Schuller, CEO at Apprenda, a member of PEER 1’s CloudXcelerator™ program said: “Our involvement in PEER 1’s CloudXcelerator™ program has highlighted to us the importance of working with partners who truly understand cloud technology.  We are still in the early days, and as this research shows, key industry players are only just beginning to test the water. The more we, PEER 1 and other cloud providers can demystify the topic, the more confidence and adoption will grow.”

Ends

About PEER 1

PEER 1 believes in the limitless opportunity of the Internet, and the business growth potential it provides for its more than 10,000 customers. As a global web business hosting provider, PEER 1 offers a reliable high performance Internet network supporting scalable Managed Hosting, Dedicated Hosting through the ServerBeach brand, and Colocation solutions.

Backed by its 100 percent uptime guarantee and 24x7x365 FirstCall Support™, PEER 1 ensures customers’ online presence is always fast, always available. Since 1999, PEER 1 has grown to include 16 state-of-the-art data centers and points-of-presence throughout North America and Europe. The company’s headquarters are in Vancouver, Canada, with European operations headquartered in Southampton, UK.  PEER 1 shares are traded on the TSX under the symbol PIX. For more information visit: www.peer1.com or www.peer1hosting.co.uk

About Apprenda

Apprenda is the creator of SaaSGrid, a powerful SaaS Application Server that gives independent software vendors a business and technological foundation to build, deploy, and monetize their service-oriented applications for on-demand use without technological lock-in. SaaSGrid empowers software companies with the ability to build powerful SaaS applications at break-neck speeds, smashing time-to-market barriers, removing implementation roadblocks, and significantly reducing risk. This leaves developers with one job: to build on-demand software that meets customers' needs without worrying about the difficulties of on-demand delivery.  For more information visit Apprenda's website at: http://www.apprenda.com.

For PEER 1 inquiries please contact Marcela Peake on 604-909-6428 / mpeake@peer1.com