An increasing number of companies have been hit by costs associated with cloud computing, according to research by consulting firm Research In Action.
The survey of 468 CIOs from large and medium sized global businesses found that 79% of CIOs are concerned about hidden costs that come with cloud computing.
When asked what the biggest management concerns were, 64% cited poor end user experience from performance bottlenecks. Another 51% said poor performance had worked against branding and customer loyalty, while 44% cited a loss of revenue from poor availability and performance.
Bernd Greifeneder, CTO at Compuware, said: “The dynamic and remote characteristics of cloud-based applications require a new, smart and automatic approach for deep, proactive monitoring that not only identifies end-user experience problems but also provides deep diagnostics for problem resolution.”
The study also revealed that more companies than ever are using the cloud to deliver business applications, with 81% of CIOs already using cloud-based ecommerce platforms or planning to within the next year.
However, 73% of companies said they are still using outdated methods to track and manage application performance.
Thomas Mendal, managing director at Research In Action, said traditional monitoring tools don’t work in the cloud. He added: “Effectively monitoring and managing modern cloud-based applications and services requires a new approach designed to work in today’s complex, hybrid and dynamic environments. Failure to do so could have a hugely detrimental impact on reputation, customer loyalty and revenues.”