The often quoted financial benefit of using cloud computing technologies has got another confirmation in a new research carried out by Navint Partners LLC. The most important finding related to usage and deployment of cloud technologies is related to the cost savings – 90% of respondents confirmed that SaaS models and cloud technologies significantly reduced costs in their companies.
The survey Trends in Cloud Adoption 2012 contained 27 questions about implementing cloud technologies and examined CIOs from companies with more than 5,000 employees. Both positive and negative sides of the cloud were tackled on and the findings were mostly in accordance with what the users claimed about the cloud before.
First positive thing that is often attributed to the cloud is its potential for reducing corporate IT costs. Survey respondents justified these implications and 90% of them noted they got 100% of forecasted savings after adopting cloud technology.
Robert Summers, CIO of tax preparation firm Jackson Hewitt and John Robosson, senior partner at Navint further analyzed the given results. They explained that perhaps the biggest mistake business managers make when forecasting cost savings is thinking it would take a longer time period before the results are actually tangible. On the contrary, tangible results may come much sooner depending on the methodologies applied, says Robosson.
Besides cost reduction, eliminating hardware equipment can bring many other benefits. Storing files and applications gives more disaster recovery possibilities when the cloud providers are in charge of it. Furthermore, as 64% of respondents said, cloud technologies also improve the processes of efficiency and effectiveness. Summers pointed out that organizations may often require a neutral party to decide upon the processes and models that should be shifted to the cloud and SaaS models.
Not quite unexpectedly, security was found to be a major negative indicator for cloud implementation. This limitation was once again proved to be the main inhibitor to moving “mission-critical” applications to the cloud.
- Vendor Flexibility
Even though cloud technologies get increasingly popular among SMEs, many CIOs still express some dissatisfaction with the options vendors offer regularly. Hewitt points out that none of the major vendors they talked to offered pay-as-you-go option which many businesses could find more suitable.
In addition to this, a significant percentage of CIOs expect the budget companies dedicate to cloud computing to grow up to 20% by 2014. This belief into expansion of cloud services seems to be what many CIOs share. A survey carried out by North Bridge Venture Partners few months ago also found that a great number of their respondents believe that the cloud is to expand significantly in future.
In conclusion, Navint points out how important it is to discover and understand the major drivers and inhibitors to cloud adoption. Researches like this may help both clients and vendors to understand the cloud so the services could be improved and users could better implement and manage them.