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Survey: SLAs important to mitigate cloud performance concerns

A new report by service provider Alcatel-Lucent revealed that the global cloud computing market will generate up to $177 billion in revenue by 2015. Despite this growth, there are still major inhibitors that may slow down the market, including performance concerns associated with the technology.

The study noted that roughly two-thirds of businesses don't host mission-critical applications in the cloud for fear of outages, which cause important solutions to be inaccessible. Another 25 percent of survey respondents said there is no alternative path to take when service-level agreements are not met.

"A typical large enterprise supports between 250 and 750 IT applications, so before it decides to move them to the cloud it must be confident of a smooth migration," Alcatel-Lucent executive Dor Skuler said. "It needs to ensure that there are substantial efficiencies to be gained, risks to its operations are minimal, it is easy to use and that cloud performance is guaranteed with service-level agreements."

A separate report by InformationWeek said that decision-makers need to set realistic expectations when discussing SLAs with cloud vendors. The document should reflect user experience, meaning all web hosting and performance issues should be worked out before the deployment of the technology.

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