Cloud computing is seductive. Incredibly so. Reduced capital costs. No more power and cooling of a server closet or data center. High-speed Internet backbones. Outsourced disaster recovery. Advanced edge caching. Deployments are lightning fast, with capacity ramp-ups only a mouse-click away, making the cloud a panacea for Big Data applications.

Cloud computing is scary. Vendors come and vendors go. Failures happen, and they are out of your control. Software is updated, sometimes with your knowledge, sometimes not. You have to take their word for security. And the costs aren’t always lower.

An interesting new study from KPMG, “The Cloud Takes Shape,” digs into the expectations of cloud deployment—and the realities.

According to the study, cloud migration was generally a success. It showed that 33% of senior executives using the cloud said that the implementation, transition and integration costs were too high; 30% cited challenges with data loss and privacy risks; 30% were worried about the loss of control. Also, 26% were worried about the lack of visibility into future demand and associated costs; 26% fretted about the lack of interoperability standards between cloud providers; and 21% were challenged by the risk of intellectual property theft.

There’s a lot more depth in the study, and I encourage you to download and browse through it. (Given that KPMG is a big financial and tax consulting firm; there’s a lot in the report about the tax challenges and opportunities in cloud computing.)

The study concludes:

About Alan Zeichick

Alan Zeichick, founding editor of SD Times, is principal analyst of Camden Associates.