CIOs' vision clouded by 'fake' service providers
ElasticHosts' survey of IT executives shows disgruntlement with misuse of terminology and with attitudes in the channel.


More than 80 per cent of IT directors have found their efforts to move to the cloud frustrated by fake clouds' and a lack of product availability in the channel, research suggests.
A survey of 200 CIOs from a cross section of businesses demonstrated a problem of cloud' being used as a marketing term for services that are merely conventional hosting, infrastructure-as-a-service provider Elastic Hosts, who commissioned the research, claimed. 67 per cent of respondents has been offered fixed term cloud services, while 40 per cent had been offered services that were neither elastic, nor scalable. A further 32 per cent had found many products were not self-service, all of which are the key attributes of NIST's definition of cloud computing.
Richard Davies, CEO of ElasticHosts, told IT Pro sister site Cloud Pro his company commissioned the research as it had increasingly been hearing complaints around fake cloud' from its customers.
"We wanted to really get out and prove this is a problem among buyers and then try to ... clarify to end users what they should be looking for and what they shouldn't be looking for," Davies said.
"What we have seen more recently is the word cloud computing' has become so powerful and so much of a buzzword that large numbers of other vendors that, frankly, can't provide these capabilities have rushed in to rebadge their products as cloud," he added.
Davies believes buyers will not get the benefits they expect from cloud unless they understand what it is supposed to be, allowing them to identify true' cloud providers.
"[If] they can ask the right questions when they are buying, they will end up with a genuine cloud provider ... which means they will have a good experience," Davies said.
Get the ITPro daily newsletter
Sign up today and you will receive a free copy of our Future Focus 2025 report - the leading guidance on AI, cybersecurity and other IT challenges as per 700+ senior executives
The research also revealed disappointment with the channel. 86 per cent said they would buy cloud products through the channel if it provided the services they need, however the majority have found it does not.
"It is clear that there is a growing appetite for cloud services and a good opportunity for the channel to make profits [however, it is] missing opportunities and driving business away," Davies concluded.

Jane McCallion is Managing Editor of ITPro and ChannelPro, specializing in data centers, enterprise IT infrastructure, and cybersecurity. Before becoming Managing Editor, she held the role of Deputy Editor and, prior to that, Features Editor, managing a pool of freelance and internal writers, while continuing to specialize in enterprise IT infrastructure, and business strategy.
Prior to joining ITPro, Jane was a freelance business journalist writing as both Jane McCallion and Jane Bordenave for titles such as European CEO, World Finance, and Business Excellence Magazine.
-
RSAC Conference 2025: The front line of cyber innovation
ITPro Podcast Ransomware, quantum computing, and an unsurprising focus on AI were highlights of this year's event
-
Anthropic CEO Dario Amodei thinks we're burying our heads in the sand on AI job losses
News With AI set to hit entry-level jobs especially, some industry execs say clear warning signs are being ignored
-
Protecting CIOs' IT budgets is "paramount" in maintaining business growth
News If CIOs are forced to make emergency budget cuts, they should also explain the risks to high level stakeholders so the responsibility is shared
-
The IT Pro Podcast: Accelerating digital transformation
IT Pro Podcast Implementation is just as important as the value of change
-
Podcast transcript: Accelerating digital transformation
IT Pro Podcast Read the full transcript for this episode of the IT Pro Podcast
-
Fit-for-purpose IT infrastructure for digitally determined organisations
Whitepaper Your innovation engine: Guiding organisations through change in the new digital economy
-
IT Pro News in Review: CIOs face a challenge, Ofcom's telecom fines, Apple expands Xcode
Video Catch up on the biggest headlines of the week in just two minutes
-
CIO role has 'drastically changed' over last 24 months, says Lenovo
News Globally survey suggests chief information officers have greater influence over their company now the role has expanded beyond technology
-
How can CIOs help to close the tech skills gap?
In-depth The most well-equipped IT leaders can take a number of practical steps to close the divide within their organisations
-
What is a virtual CIO (vCIO) and does your business need one?
In-depth With tech skills in short supply, organisations are turning to temporary expertise to see through critical digital transformation projects