More than four in five IT managers do not use cloud technologies, says Peer 1.
Research by the web hosting company also revealed that more than a third of those that don't use the cloud admitted it was because they didn't have enough knowledge of the technology.
Peer 1 said that nearly half of those surveyed said they would consider using cloud technologies in the future, with two thirds attracted to its availability and reliability.
Furthermore, the performance benefit offer by cloud technology was cited by 69 percent of IT managers as a popular reason for employing the technology, while 43 percent said the security offered by the cloud was the biggest draw.
Dominic Monkhouse from Peer 1 said the company conducted the research to gain a better understanding of IT decision makers' perceptions of cloud hosting.
"The results clearly illustrate that there is lot of confusion around the benefits and limitation of cloud hosting. There are some very mixed messages out there."
Monkhouse said that while there are many benefits to the cloud such as a reduction in costs and increase flexibility for businesses, the industry can help IT managers make an informed decision by providing standards that will address concerns around security and compliance.