The Cloud Continues to Prove Its Value

By the DynaSis Team

We talked about the benefits of cloud computing several times in our articles―and published survey results where executives of adopting companies tout its value. Today, we’re going to share some independent, concrete figures that may impress you. A February 2014 study by technology research firm Computer Economics found that migrating to the cloud reduces IT expenditures by at least 15% over maintaining a traditional technology infrastructure.

In the introduction to the report, Computer Economics noted, “We find that organizations that have fully or largely migrated to the cloud save on average more than 15% in IT spending as a percentage of revenue. Savings come not only from a reduction in data center spending, but also from lower IT personnel costs. Because cloud-based systems reduce the effort needed for ongoing support, cloud users are able to devote a higher percentage of their IT spending to new initiatives. The cost savings, combined with strategic benefits in speed, scalability and agility, argue in favor of organizations moving aggressively to the cloud.”

To assess the savings associated with the cloud, Computer Economics looked at six metrics: personnel, applications, data center, network, user devices and “other.” The analysis indicated that cloud technology makes processes easier and increases productivity (especially mobile productivity).

For the survey, the firm evaluated organizations in a variety of industries, including a wholesale distributor, a systems integrator and an online content distributor. Each had migrated all or a significant portion of their technology assets and services to the cloud. All were major enterprises―many of which have already optimized their technology systems and processes for cost-effectiveness before migrating to the cloud. Consequently, the savings for small and medium-sized businesses should be even greater.

On a related note, two recent surveys found that cloud adoption has finally hit fever pitch. One survey, released in late 2013 by 451 Research, indicated that 60% of CIOs are increasing enterprise spending on the cloud (2013 and 2014). Another study, from market research firm Vanson Bourne, found that 87% of North American businesses have already moved, or are looking to move, their services and data to the cloud within the next two years.

Despite this progress, roadblocks remain. In the Computer Economics study, 83% of respondents indicated they faced significant roadblocks―and not in the IT realm. Roadblocks they cited included people, processes and politics, indicating that management and perhaps personnel are still not fully on-board the cloud bandwagon. The Vanson Bourne study cited different barriers―specifically, regulatory and compliance issues―but these arose in conjunction with cloud provider selection rather than cloud adoption. Vanson Bourne also found that, among IT professionals, security remains the biggest bottleneck.

Despite being big fans of the cloud, we at DynaSis do understand that it isn’t for everyone―at least, not yet. Not everyone is ready to embrace the cloud yet, for security or other reasons. This is why we offer both a full-service, managed IT services plan for those with traditional IT infrastructure as well as a hybrid (cloud and on-premise) offering, in addition to our cloud-computing solution. To learn more about what the cloud can do for your firm, or to explore any of our IT services, fill out our inquiry form or give us a call.