"Early adopters know they'll get new services but they'll also have to deal with problems," Kagan explained. "The problems are just coming up and they don't have a fix yet. Yeah, they look hot with this new technology but they're the ones dealing with the problems. Some companies will adopt it late because they don't want to deal with any problems at all."
"I don't know whether it's accurate to say cloud providers are hiding things," Kagan said. "It's a brand new experience for everyone. Cloud operators just don't know what's hiding around the corner until they're hit with something and they get a bloody nose."
Kagan recommended that enterprises work with multiple providers. They also should ask about any problems the provider has had in the last six months to a year. And be sure to talk to other customers.
"Realize that every cloud provider will have problems," he said. "The real issue is how quickly they deal with them. And you're going to find that out by talking with other customers."
Rebello said while companies should be cautious about the cloud, they certainly shouldn't ignore its advantages.
"The cloud provides benefits but go at a pace that makes you feel comfortable," he added. "It's not a technology that you should shirk but try to get as much information as you can. Look at it and then move some applications that have lower security implications for the company. Move those first. And make sure you have a gradual transition."
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