Organizations Willing to Pay Premium for Cloud Security, Survey Finds

By: Jeff Bertolucci| - Leave a comment

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Cost savings are a major driver of cloud adoption and for good reason: IT leaders see the cloud as a great way to cut expenses. But this doesn’t mean companies aren’t willing to pay a little extra for better service that guarantees cloud security and performance.

According a quarterly study by 451 Research, higher levels of cloud service attract customers willing to pay higher rates. However, cloud providers often fail to meet the expectations of customers in several categories, including cloud security services bundled with an infrastructure or application service.

Willing to Pay More

The 451 Research report is based on analysis conducted using responses from about 600 global IT professionals, as well as interviews and survey responses from more than 60,000 senior IT buyers and enterprise technology executives. The study found that 75 percent of organizations are willing to pay more for guaranteed cloud security and better performance.

About 48 percent of businesses marked cloud security guarantees as their most desired improvement. This is followed by better service performance at 43.3 percent. Organizations are less interested in paying service providers to assume operational management, a service requested by only 27.9 percent of respondents.

What a Premium Service Is Worth

451 Research notes that cost savings are a major motivator for cloud adoption. This doesn’t mean, however, that customers aren’t interested in higher-priced services that add value. For cloud providers, these findings open the door to new services that distinguish their offerings in an often crowded and competitive market.

“We frequently talk about pricing competition in cloud infrastructure and applications, which leaves many service providers wondering how they can differentiate themselves,” said Liam Eagle, 451 Research manager and study author, in the official press release. “The good news is that many customers tell us they’re evaluating vendors on value rather than cost. That value can reside in services like guaranteed levels of performance, security and support.”

Room for Improvement

Although customers say they’re willing to pay more for better service, cloud providers often fail to meet these expectations.

“We have found that customers still see shortcomings when it comes to service providers helping them strategize and execute around hosting and cloud,” Eagle said. “Service providers focused on adding value should regard these gaps as opportunities they can capture by improving the quality of their own service in specific areas.”

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About The Author

Jeff Bertolucci

News Writer

Jeff Bertolucci is a Los Angeles-based journalist specializing in technology, digital media, and education. His work has appeared in Kiplinger's Personal Finance, InformationWeek, PCWorld, Macworld, The Saturday Evening Post, The Los Angeles Times and many other publications.