According to the report, this is a result of three main concerns about Cloud deployments, namingly security, compatibility and inconsistent or nonexistent planning.
Red Hat A/NZ regional vice-president and general manager, Max McLaren, said many business leaders are still reluctant to let go of the traditional model of capital expenditure, hardware budgets and datacentres.
The report showed data sovereignty and security concerns continue to be an issue for organisations looking to consume Cloud services, with 60 per cent of respondents experiencing security issues.
The survey also revealed that many companies fear applications won't be suitable for deployment into IaaS or PaaS.
Of those surveyed, 38 per cent believe that less than 40 per cent of their existing applications would fit into a Cloud architecture. The report also indicated Cloud planning is not advanced in A/NZ, with only 22.7 per cent of respondents claiming they were in the advanced planning stages.
"Choosing a hybrid Cloud management platform lets organisations use policy-based enforcement techniques across multiple Cloud providers and virtualisation systems, quarantining systems that are not up to the required standard," Mclaren said.
"Not every application can be moved to the Cloud, so any Cloud strategy must take into account the proportion of applications that can be moved immediately, those that need to be integrated, and those that will never be suitable for Cloud deployment.
"Cloud transformation isn't as simple as a 'lift and shift' but requires planning around legacy systems and newer systems to see how they can interact and integrate.
"A well-executed Cloud strategy delivers benefits including increased agility, shorter application deployment times, increased efficiency and reduced costs through virtualisation, less on-premise infrastructure and faster computing performance.
"Once CIOs are aware of these three main barriers, they can develop a Cloud strategy to overcome these obstacles and improve their organisation's competitiveness, cost efficiency and agility," he explained.