Canadian enterprises adopting cloud computing slower than American companies

February 13, 2012

American enterprises continue to migrate critical business applications and extensive data sets to the cloud, but the country's northern neighbor is lagging behind in the widespread adoption of cloud services.

According to the Globe and Mail, Canada is potentially a major market for cloud vendors, but most of the nation's businesses are currently missing out on the technology's ability to reduce IT costs, improve efficiency and expand scalability. Despite most IT experts and United States government officials proclaiming the cloud is a safe, secure option for a variety of functions, many Canadian firms still have security and privacy concerns.

Some Canadian technology professionals expect cloud computing to catch on as a mainstream IT solution after the federal and provincial governments standardize data protection for the cloud industry.

"It's an amazing thing for today's business. The most obvious reason is cutting costs and using the dollars saved for more value-added services," Sri Prakash, president of technology risk management firm E-Com Canada, told the source. "Having clear policies around cloud computing is going to dictate the rate of adoption. For Canada, moving to the cloud is a no-brainer once the policies are in place."

The source cited a recent Leger Marketing survey of businesses and government leaders, which revealed only 29 percent of organizations are using cloud technology.

The low rate of cloud adoption among Canadian enterprises and government agencies is vastly different to the current American IT landscape, where several recent studies have found that cloud computing is among the top IT investment priorities for U.S. enterprises this year. Although most experts say the cloud is secure, many businesses have implemented private cloud solutions to foster more control over their systems.

-McAfee Cloud Security