A new survey from managed hosting services provider NTT Europe Online has revealed that a majority of Chief Information Officers and Chief Financial Officers at UK enterprises either have no plans to adopt cloud or are unsure if they will move to cloud computing during the next two years.

NTT’s Cloud or Fog survey quizzed 200 CIOs and CFOs at large UK businesses (with over 500 employees and turnover ranging from £100m to £69bn) and found that nearly half (46%) felt definitions of cloud computing remained unclear.

With 35% of respondents saying they are not planning to adopt cloud computing over the next two years and a further 32% claiming to be unsure whether their business is planning to adopt it, it seems that cloud computing has quite a way to go before wide-spread enterprise adoption occurs.

Despite these figures, 60% of respondents said their organisation was more likely to invest in software and services delivered online as a result of the recession and 85% said that they are looking for more flexibility in their software licensing agreements. 68% claimed they are looking to avoid long-term IT contracts.

“Decision makers at large UK companies clearly see the benefits of investing in online delivery of software and services however many are unconvinced about taking the plunge with a cloud computing model in the next two years,” said Rob Steggles, marketing director Europe at NTT Europe Online.

77% of respondents said that their company is not using cloud computing – and cited security, concept immaturity and uncertain reliability as the main reasons for shunning adoption. Over half (55%) said that financial and accounting systems should never be put into the cloud.

“Given the model’s lack of maturity, it’s understandable that businesses are waiting to see how cloud computing pans out for early adopters,” said Steggles. “If the security and reliability concerns can be ironed out, cloud computing has a bright future – but until then, it will continue to be a work in progress.”

NTT Europe Online provides managed hosting, security and application management services. Its customers include Tottenham Hotspur Football Club, UEFA, Aviva, Expedia.co.uk, Virgin Mobile and Audi.