Cloud Computing Saves Organizations Money on IT Spending

 
 
By Nathan Eddy  |  Posted 2014-02-17 Email Print this article Print
 
 
 
 
 
 
 

Organizations are benefiting from the efficiency, low costs and flexibility that come with cloud use, according to a recent survey by Capita IT Services.

Organizations fully utilizing cloud computing save on average more than 15 percent in IT spending, whether measured as a percentage of revenue or on a per-user basis, according to a report from Computer Economics.

A more detailed analysis of respondents' IT spending mix shows that the savings come not only from a reduction in data center spending but also in IT personnel costs.

The cloud user organizations that participated in the study include two manufacturing companies, a life sciences organization, a wholesale distributor, a systems integrator and an online content provider.

The full study provides a description of the survey respondents, including their industries, sizes and cloud system portfolios.

The report then outlines the strategic benefits of cloud computing beyond cost savings, including feedback from the respondents.

Recommendations for business and IT leaders in developing a strategic road map for full migration to the cloud are also detailed in the report, which is available for purchase on Computer Economics' Website.

Survey respondents use a variety of cloud providers, including Amazon, Autodesk, Box.com, Coupa, Docusign, Insperity (ExpensAble), FinancialForce, Google, Infor, Microsoft Dynamics, NetSuite, Okta, Paylocity, Plex, Rootstock, Salesforce.com, Saleslogix, Ultimate Software, Virtustream, Workday and yieldEx.

The companies included in the report have annual revenues between $50 million and $550 million and between 135 and 860 employees.

The study also compares high-level IT spending metrics of the cloud respondents against Computer Economics' standard industry benchmarks, documents the savings they achieved, analyzes their shift in IT spending to activities with higher business value and summarizes focus on innovation instead of ongoing support.

Cloud computing is now regarded as a key enabler to corporate innovation, with organizations benefiting from the efficiency, low costs and flexibility presented by cloud use, according to a recent survey by Capita IT Services.

The survey of 35 chief information officers (CIOs) and IT leaders across 10 markets found that almost two-thirds (61 percent) believe increasing innovation and the business's commercial agility through IT has gained more importance and is now one of their organization's highest priorities.

The majority of respondents have moved, or are in the process of moving, into the cloud, which was cited as being a key to increased innovation for two main reasons.

These include 1) simplification, as the cloud offers an operating simplicity, especially across business divisions, both in terms of functionality and commercial agreements; and 2) flexibility, which comes with commercial contracts with cloud providers evolving and becoming more flexible in terms of prices and services offered.

"The organizations that we work with are increasingly using IT as a route to innovation," Peter Hands, executive director of Capita IT Services, said in a statement. "Cloud technology is making the process easier, allowing companies to increase productivity by offering trusted applications on the go and on their choice of device."

 

 
 
 
 
 
 
 
 
 
 
 
 
 

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