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Growing Numbers of Cloud Apps Still Face Performance Challenge

Are IT teams equipped to fully embrace cloud apps and services?
Patrick Carey

The good news - Cloud apps and services continue to gain traction in enterprises with both business users and IT departments. The trend is being driven by much more than cost savings too.

The bad - Big obstacles still remain including a lack of confidence about service performance and availability, a lack of management tools and continuing concerns about data security.

These observations come from a recent survey of over 200 business executives and IT managers in North America to better understand their current and planned use of cloud-based applications and services, the drivers behind cloud adoption, and the obstacles that stand in their way. Some of the highlights include:

Both Businesses and IT Teams Plan to Use Cloud Apps

Both business and IT users surveyed indicated a major role for both Infrastructure as a Service (IaaS) and Software as a Service (SaaS) models in their future IT plans. To date, much of the usage of cloud apps has been driven by business users.

IaaS Dominates Today, But SaaS Adoption is Catching Up

While IaaS offerings like Amazon Web Services and Microsoft Azure represent a larger share of the cloud pie today, SaaS offerings are gaining ground. This includes expanding the use of established SaaS applications like Salesforce.com as well as deploying newer offerings such as Microsoft Office 365, Google Apps and Dropbox as core applications for most employees.

Cloud Use is Being Driven by More Than Cost Savings

The CapEx and OpEx benefits of cloud services are clearly understood and well documented, but adoption today is being driven by the operational agility and flexibility advantages more so than the cost benefits. The ability to deploy new services quickly and reconfigure them easily as the needs of the business change is becoming critical.

As Cloud Adoption Gains, IT Roles and Responsibilities Shift

The requirements in a cloud-based environment shift from managing apps and supporting infrastructure to coordinating and ensuring the availability of the services business users need to do their jobs. The challenge is how to manage and assure app service levels and data security for users when they don't have the same control over cloud-based services that they have over on-premise applications.

Security Concerns and Lack of IT Visibility Hamper Adoption

The biggest obstacles to cloud adoption are security concerns and a lack of confidence in app/service performance and availability. Related to this, over 40% of respondents indicate that their IT team has no tools to monitor and manage their cloud apps. Just 17% of respondents feel like their existing tools do a good job managing and monitoring their cloud-based apps.

What Should We Take From This?

It's no surprise that data security remains a primary concern with cloud deployments. Although the major service providers implement security measures that are more sophisticated than those in place within most business datacenters, businesses remain wary of the risks of storing their sensitive data in the cloud.

What may be surprising to the readers of APMdigest is the concern over cloud app performance and availability and the lack of good cloud management tools.

IT teams adopting cloud apps often find themselves in a challenging position today. Their users and business management still look to them to "own" application availability and performance even though they no longer own the application hosting environment. Unfortunately, the tools they use to manage their on-premise applications don't give them the same visibility and control in the cloud. This issue is further highlighted by the fact that nearly two-thirds of respondents indicate that their IT team either has no tools to monitor and manage their cloud apps or they simply rely on whatever health dashboard is available from their cloud service providers.

This data suggests a significant gap in systems management. Traditional tools, which have relied on direct access to servers, network equipment, log files, and APIs, are unable to effectively support cloud apps and services that do not expose those interfaces. Network management tools address part of the problem by focusing on network health, but they too are often limited in their visibility outside the company firewall and generally unable to provide insight into application/service health.

When asked how well the tools they use today address their cloud app monitoring and management needs, over 75% of the respondents indicated that they are at best, ambivalent about the tools. And more respondents feel their tools are not up to the task than feel they are.

Most mature systems management and monitoring solutions on the market today have evolved alongside the on-premise applications, operating systems, server and network infrastructure they have been used to manage. Organizations are now realizing how profoundly a cloud-centric IT architecture differs from their legacy on-premise architectures and with that how different their management and monitoring needs will be going forward. This is the key to driving cloud adoption in the enterprise and enabling businesses to take full advantage of all it has to offer.

Patrick Carey is VP Product Management & Marketing at Exoprise.

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Growing Numbers of Cloud Apps Still Face Performance Challenge

Are IT teams equipped to fully embrace cloud apps and services?
Patrick Carey

The good news - Cloud apps and services continue to gain traction in enterprises with both business users and IT departments. The trend is being driven by much more than cost savings too.

The bad - Big obstacles still remain including a lack of confidence about service performance and availability, a lack of management tools and continuing concerns about data security.

These observations come from a recent survey of over 200 business executives and IT managers in North America to better understand their current and planned use of cloud-based applications and services, the drivers behind cloud adoption, and the obstacles that stand in their way. Some of the highlights include:

Both Businesses and IT Teams Plan to Use Cloud Apps

Both business and IT users surveyed indicated a major role for both Infrastructure as a Service (IaaS) and Software as a Service (SaaS) models in their future IT plans. To date, much of the usage of cloud apps has been driven by business users.

IaaS Dominates Today, But SaaS Adoption is Catching Up

While IaaS offerings like Amazon Web Services and Microsoft Azure represent a larger share of the cloud pie today, SaaS offerings are gaining ground. This includes expanding the use of established SaaS applications like Salesforce.com as well as deploying newer offerings such as Microsoft Office 365, Google Apps and Dropbox as core applications for most employees.

Cloud Use is Being Driven by More Than Cost Savings

The CapEx and OpEx benefits of cloud services are clearly understood and well documented, but adoption today is being driven by the operational agility and flexibility advantages more so than the cost benefits. The ability to deploy new services quickly and reconfigure them easily as the needs of the business change is becoming critical.

As Cloud Adoption Gains, IT Roles and Responsibilities Shift

The requirements in a cloud-based environment shift from managing apps and supporting infrastructure to coordinating and ensuring the availability of the services business users need to do their jobs. The challenge is how to manage and assure app service levels and data security for users when they don't have the same control over cloud-based services that they have over on-premise applications.

Security Concerns and Lack of IT Visibility Hamper Adoption

The biggest obstacles to cloud adoption are security concerns and a lack of confidence in app/service performance and availability. Related to this, over 40% of respondents indicate that their IT team has no tools to monitor and manage their cloud apps. Just 17% of respondents feel like their existing tools do a good job managing and monitoring their cloud-based apps.

What Should We Take From This?

It's no surprise that data security remains a primary concern with cloud deployments. Although the major service providers implement security measures that are more sophisticated than those in place within most business datacenters, businesses remain wary of the risks of storing their sensitive data in the cloud.

What may be surprising to the readers of APMdigest is the concern over cloud app performance and availability and the lack of good cloud management tools.

IT teams adopting cloud apps often find themselves in a challenging position today. Their users and business management still look to them to "own" application availability and performance even though they no longer own the application hosting environment. Unfortunately, the tools they use to manage their on-premise applications don't give them the same visibility and control in the cloud. This issue is further highlighted by the fact that nearly two-thirds of respondents indicate that their IT team either has no tools to monitor and manage their cloud apps or they simply rely on whatever health dashboard is available from their cloud service providers.

This data suggests a significant gap in systems management. Traditional tools, which have relied on direct access to servers, network equipment, log files, and APIs, are unable to effectively support cloud apps and services that do not expose those interfaces. Network management tools address part of the problem by focusing on network health, but they too are often limited in their visibility outside the company firewall and generally unable to provide insight into application/service health.

When asked how well the tools they use today address their cloud app monitoring and management needs, over 75% of the respondents indicated that they are at best, ambivalent about the tools. And more respondents feel their tools are not up to the task than feel they are.

Most mature systems management and monitoring solutions on the market today have evolved alongside the on-premise applications, operating systems, server and network infrastructure they have been used to manage. Organizations are now realizing how profoundly a cloud-centric IT architecture differs from their legacy on-premise architectures and with that how different their management and monitoring needs will be going forward. This is the key to driving cloud adoption in the enterprise and enabling businesses to take full advantage of all it has to offer.

Patrick Carey is VP Product Management & Marketing at Exoprise.

Hot Topics

The Latest

As discussions around AI "autonomous coworkers" accelerate, many industry projections assume that agents will soon operate alongside human staff in making decisions, taking actions, and managing tasks with minimal oversight. But a growing number of critics (including some of the developers building these systems) argue that the industry still has a long way to go to be able to treat AI agents like fully trusted teammates ...

Enterprise AI has entered a transformational phase where, according to Digitate's recently released survey, Agentic AI and the Future of Enterprise IT, companies are moving beyond traditional automation toward Agentic AI systems designed to reason, adapt, and collaborate alongside human teams ...

The numbers back this urgency up. A recent Zapier survey shows that 92% of enterprises now treat AI as a top priority. Leaders want it, and teams are clamoring for it. But if you look closer at the operations of these companies, you see a different picture. The rollout is slow. The results are often delayed. There's a disconnect between what leaders want and what their technical infrastructure can handle ...

Kyndryl's 2025 Readiness Report revealed that 61% of global business and technology leaders report increasing pressure from boards and regulators to prove AI's ROI. As the technology evolves and expectations continue to rise, leaders are compelled to generate and prove impact before scaling further. This will lead to a decisive turning point in 2026 ...

Cloudflare's disruption illustrates how quickly a single provider's issue cascades into widespread exposure. Many organizations don't fully realize how tightly their systems are coupled to thirdparty services, or how quickly availability and security concerns align when those services falter ... You can't avoid these dependencies, but you can understand them ...

If you work with AI, you know this story. A model performs during testing, looks great in early reviews, works perfectly in production and then slowly loses relevance after operating for a while. Everything on the surface looks perfect — pipelines are running, predictions or recommendations are error-free, data quality checks show green; yet outcomes don't meet the ground reality. This pattern often repeats across enterprise AI programs. Take for example, a mid-sized retail banking and wealth-management firm with heavy investments in AI-powered risk analytics, fraud detection and personalized credit-decisioning systems. The model worked well for a while, but transactions increased, so did false positives by 18% ...

Basic uptime is no longer the gold standard. By 2026, network monitoring must do more than report status, it must explain performance in a hybrid-first world. Networks are no longer just static support systems; they are agile, distributed architectures that sit at the very heart of the customer experience and the business outcomes ... The following five trends represent the new standard for network health, providing a blueprint for teams to move from reactive troubleshooting to a proactive, integrated future ...

APMdigest's Predictions Series concludes with 2026 AI Predictions — industry experts offer predictions on how AI and related technologies will evolve and impact business in 2026. Part 5, the final installment, covers AI's impacts on IT teams ...

APMdigest's Predictions Series concludes with 2026 AI Predictions — industry experts offer predictions on how AI and related technologies will evolve and impact business in 2026. Part 4 covers negative impacts of AI ...

APMdigest's Predictions Series concludes with 2026 AI Predictions — industry experts offer predictions on how AI and related technologies will evolve and impact business in 2026. Part 3 covers barriers and challenges for AI ...