Businesses are still hazy about cloud technology and often don’t know what level of service to expect from cloud tech service providers, according to a new report published by Auxilion.

The 16-page report was authored by Mark O’Loughlin, head of cloud advisory and consulting at Auxilion, an Irish-owned cloud services company with offices in Dublin and Sheffield. The firm is a subsidiary of I.T. Alliance Group and was launched in 2012.

According to O’Loughlin, cloud computing and cloud-based services are growing exponentially, but organisations are unaware of the questions they need to ask to ensure quality of service.

“For example, customers may assume that their applications and services are fully resilient and backed up, only to find out during a service outage that they have inadequate arrangements in place,” said O’Loughlin.

“The legal jurisdiction of where the data is stored also poses serious legal and compliance issues, such as who has access to the data from a legal perspective and what data protection laws apply.”

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O’Loughlin’s report, entitled ‘IT Service Management And Cloud Computing’, suggests several questions that companies should ask their cloud services providers, such as the levels of availability offered, continuity plans for recovering data and whether ITIL principles are being implemented.

The report recommends implementing ITIL principles to support the adoption and use of cloud computing and cloud-based services, describing ITIL as the most recognised framework for IT service management in the world.

O’Loughlin also pointed out that contrary to perception, cloud computing is not a new technology. “The basic principles of cloud computing date back to the mainframe era of the 1950s and ‘60s,” he said.

“Customers of cloud computing and cloud based services should expect, and demand, at least the same levels of service as that provided by traditional IT service providers and internal IT organisations.”

O’Loughlin continued: “Applied properly, cloud computing has huge cost and productivity benefits. For example, businesses no longer need to procure, operate and maintain full and complete back-end IT infrastructure and applications.

In addition, smartphone and tablet devices have enabled new mobile business models which did not exist ten years ago, via cloud-enabled applications and improvements in data communications and broadband access and speeds.

“However, when adopting cloud computing and cloud-based services, businesses should not forget the basic principles of IT service management,” O’Loughlin concluded.

Mark O'Loughlin, head of cloud advisory and consulting at Auxilion