Most IT leaders see cloud computing as viable technology that can help the bottom line, but concerns about security and control slow adoption. That's the result of a recent report from IT consulting firm Avanade.

Avanade, a company founded by Accenture and Microsoft, commissioned Kelton Research to conduct the study of more than 500 C-level executives worldwide.

First, more than half of those surveyed use technologies to cut costs. A majority of 80% in the United States also believe that cloud computing reduces up-front costs and ongoing operational expenses. According to the results, 71% of respondents agree that cloud computing is a viable option. They recognize that such a model allows firms to focus on the core business, react more quickly to market conditions, gain access to the latest technologies, and improve ability to be flexible.

However, a full 61% aren’t using cloud computing systems at this time. And most of them don’t intend to implement it in the next 12 months. IT and business leader do have concerns about security threats and loss of control of systems and data, leaving them to place more trust in their internal systems which are often too expensive.

“Companies need to continually embrace best practices and consider new technologies in order to remain competitive in this global market,” says Tyson Hartman, Avanade global chief technology officer. “This research shows cloud computing may be the next wave of IT evolution.”

Amy Schurr is the former managing features editor of Network World.