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SaaS and Cloud Computing: Adopters Report Greater Flexibility, Simplified Operations, and Cost Savings
Businesses that have moved to the cloud are spending more than 15 percent less than the average spend on IT from over the last twenty years. That’s the result of a study conducted by Computer Economics.
Considering that IT budgets are often in the ballpark of 3-5 percent of the revenue for a business, 15 percent savings can be significant.
The result was surprising to the analysts at Computer Economics. Frank Scavo, President of Computer Economics and author of the report, wrote that “when we first started this research I expected the answer was going to be that companies that went to cloud computing spent about the same amount on IT as those on-premises but spend it in smarter or better ways.”
61 percent of the businesses surveyed said that adoption of the cloud allowed them to improve on innovation and business commercial agility. Companies reported that the move to cloud computing has allowed them to be more innovative because of the following two factors:
- Use of the cloud significantly simplifies their day-to-day operations
- Cloud services offers them greater flexibility in managing their costs and selection of the services which they consume
Scavo elaborated on details of the report, telling Diginomica that “one respondent indicated that cloud systems allows his company to grow 25% through acquisition, without having to increase back office costs. Another respondent pointed to the same benefit. A third respondent mentioned the ability to quickly bring new functionality online without the risk that comes with buying licenses. All of the respondents were big on the flexibility and scalability benefits of cloud systems. In fact, it was hard to get them to indicate any downside.”
