Growing Concerns with Data in the Cloud

The promise of cloud computing might seem limitless, but the challenges it presents are significant, especially in the area of information management, according to a recent study.

The applications and software tools that enable doing business in the cloud also are new places where corporate data resides and is accessed, which requires management and integration with other enterprise data stores.

These elements have created questions about data consistency, data integration, data quality and data governance, according to a study from Ventana Research, which found that users in finance and supply chain ranked lowest at 8 percent and 6 percent respectively in support of cloud-based functions. Over the next 12 months, 34 percent of businesses reported they plan to support finance with cloud-based applications.

"Organizations [providing cloud-based services] need to recognize that to the extent [businesses are] investing in cloud- based applications they need to help their users trust that data," said David Menninger, vice president and research director at Ventana Research. "Educating their users when they adopt cloud-based applications on security and the processes that are used to ensure the integrity of the data will help.

The findings also show the processes for working with new sources of information have not kept pace with adoption.

"The technology is being adopted for some immediate benefits that it provides, but the organizational processes and infrastructure to support those things needs to be modified to catch up," said Menninger.

This could stem from the fact business groups drive the purchasing decision, usually without considering all the issues related to integrating data, utilizing data from multiple applications that are in the Cloud and relating that data to other applications.

According to the report, it is important for the line of business and IT to work hand-in-hand to find the best solution for the company. The line of business knows the outcomes it wishes to achieve, while IT knows how to find the proper software to make those goals happen.

"There is a measurable difference in the satisfaction of organizations where those groups work together," Menninger said.

The next step, he added, is to determine how best to integrate Cloud-based data for optimal success. Fifty-six percent of responders report the main technology used to integrate data is exporting to spreadsheets through text files.

"If you're exporting to text files and spreadsheets, you're inviting problems," said Menninger. "Think back to the trust issue: the opportunity for errors and the fact it can't be automated, that's not good."

Other technologies used for data integration reported are 39 percent use custom coding, 39 percent use data extraction tools or utilities provided by the SaaS vendor, 38 percent use data integration tools installed in the enterprise and 27 percent use data integration tools designed for Cloud computing.

Another factor with trust is the frequency with which companies access this data. Respondents reported 57 percent integrate information on a daily basis. Ensuring all data is uploaded correctly and in a timely manner is paramount.

"Most organizations are getting to the point that everybody expects every piece of information to be instantaneously updated," said Menninger.

Benefits

The biggest financial benefit of using Cloud-based applications, at 51 percent, is reducing the total cost of ownership, while 46 percent reported reducing implementation fees.

The report also shows the biggest process benefits from using the Cloud, at 50 percent, is improved data quality, while 46 percent reported reducing installation and maintenance effort.

Ways to Improve Success with the Cloud

• Access your organization's maturity with business data in the Cloud
• Investigate moving Cloud-based data on premises and vice versa.
• Assess your needs for integrating Cloud-based data with other types.
• Do not rely on desktop tools or custom code to export cloud-based data.
• Address your security concerns about Cloud-based data directly.
• Ensure that users trust Cloud-based data and metadata.
• Look for ways to automate information management processes.
• Deal with obstacles to integrating Cloud-based data.
• Identify key benefits of managing data in the Cloud.
• Do not ignore life-cycle issues for Cloud-based data.
• Have IT help lines of business manage Cloud data.
• Insist that vendors expose their Cloud-based applications' data models.
• Evaluate "Cloud-aware" technologies for information management
• Focus more on information management in general.