While companies across the United States seem to be having a great amount of success in cloud computing, Canadian companies are a bit more hesitant. A recent study by TELUS and IDC showed that 71 percent of Canadian businesses are risking their competitive edge due to not being open to IT delivery models.

The survey showed that 91 percent of Canadian businesses have concerns about the public cloud's ability to secure data, and 63 percent of Canadian business leaders list security as one of their top two concerns in the cloud. Companies may be overstating the security risks of the cloud, as the technology is now more mature and has a greater ability to provide security in the marketplace.

"Many larger Canadian organizations miss the opportunity to exploit the benefits of cloud because they fixate on security. To properly weigh public, hosted and private cloud options versus traditional IT delivery, multiple criteria are important including data residency," said David Senf, vice-president of Infrastructure and Cloud Solutions, IDC. "Security is critically important, and in fact, is one of many pillars of cloud success."

Former U.S. federal CIO Vivek Kundra said the cloud computing security concerns are exaggerated. He believes people are amplifying their concerns to preserve the status quo, according to an article from last year in Computerworld.