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Cloud adoption in Hong Kong faces challenges

Veronica C. Silva | Nov. 25, 2011
Lack of industry experience and standards are some of the challenges that organisations need to hurdle to be able to implement cloud computing.

Organisations in Hong Kong are finally ready to move into cloud computing, according to IT research and advisory firm Gartner. However, these organisations face challenges that are keeping them from implementing cloud computing and other disruptive technologies.

Gartner said in its recent report that the IT services market in Hong Kong is expected to grow at 5.5 percent by 2011 and IT management will grow at 6.8 percent. These are expected as organisations in the economy are finally ready to bring forward cloud computing from mere boardroom discussions to implementation.

But implementation is not that easy as Gartner noted that the support infrastructure may not be ready. 

According to Gartner's report titled "Forecast: IT Services, 2008-2015, 3Q11 Update," among the challenges facing Hong Kong organisations are the insufficient experience of vendors and the lack of industry standards to benchmark cloud computing implementation. Gartner even warned of market hype as some service providers are merely providing lip service without beefing up their capabilities.

Cloud benefits

These challenges are unfortunate given that organisations in Hong Kong have realised the importance of cloud computing and other disruptive technologies to their businesses. 

"Disruptive technologies like cloud computing, mobility and social media will drive IT services adoption in Hong Kong in 2012. CIOs will see these new delivery models as an opportunity to take stock of what they've invested on and determine if course corrections need to be taken as they strive to lower cost, improve productivity and efficiency. Cloud computing is enabling business units and management to put pressure on IT to improve its efficiency," said Twiggy Lo, principal research analyst, Gartner.

Gartner noted that CIOs and IT decision makers in Hong Kong are currently in a dilemma on how and when to best implement cloud computing. On the one hand, organisations are aware of the importance of cloud computing. They know they have to start moving into cloud computing lest they be left out by competition. On the other hand, they are also aware of the business risks involved in exposing themselves to cloud computing.

Lo also warned that there is a lot of hype in the market, with service providers not having sufficient experience in implementing cloud computing. Lo said vendors and service providers should advise and educate organisations on the benefits of cloud computing to their business.


"Businesses need to better understand these disruptive technologies and how these can be applied to their business. Some of these are hype, others can really be applied to the business. More importantly they need to evaluate the service providers to see if they have the capability to deliver on the promises of the technology," she adds.


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