The Amazing ROI of Cloud Computing


A recent study by Nucleus Research shows that cloud computing delivers a greater return on investment (ROI) than previously thought. The firm, which does ongoing technology-based research and specializes in cloud computing, found that companies that invested in the cloud had a 1.7 times greater ROI than those who invested in on-premise projects. This study further reinforces the thinking that cloud computing is a valuable asset for your company to invest in.

The study covered a wide range of investments in cloud computing and looked at 70 cases studies with investments ranging from $30,000 to $10 million. Nucleus discovered that ROI improved over time for those businesses who invested in cloud computing over the long term. With the 70 case studies in this research project, the companies which invested in cloud computing saved 40% on consulting fees and 25% on personnel costs associated with application support.

ROI improves over time

Not only were the companies involved in the cloud computing case study able to reduce their costs, but the benefits of their investments grew over time. The reasons for this were that because companies are only paying for the applications and services they need, they can tailor packages to suit their existing needs and adapt them as they grow. Companies can gradually expand their cloud computing footprints without having to engage the services of consultants or application support personnel.

A study on cloud computing ROI by the 1105 Government Information Group surveyed 460 respondents who all agreed that cloud computing has a lower cost of ownership than in-house investments. From FCW: “About half [of the 460 respondents] also indicated that the ROI associated with new cloud computing programs will happen faster than for comparable IT initiatives implemented via traditional on-premise approaches.”

How to maximize your cloud computing ROI

It’s important to invest wisely when you embark on a cloud computing platform. Sensible initial investments will help you to get the most out of your cloud computing ROI and you would do well to invest some time and money to completely understand the cloud landscape before dipping your toes in.

Invest in tools that are specifically designed to manage the structure of your cloud platform. Adequate management software will give you the control and automation you need to boost your cloud computing ROI.

Don’t ditch your IT department; these employees can provide invaluable support in authoring and implementing your cloud computing policies and infrastructure. Ensure that they have the training and knowledge they need to design cloud computing scaffolding that supports the functionality that you need. Invest in educating all of your employees so that they understand the underlying structure of cloud computing and how to adapt their current practices to best utilize the kinds of control and automation that you now wield.  This is a lengthy process that entails changing both mindsets and processes. It also requires a comprehensive cloud computing policy which governs how, when and where the cloud can be accessed and how data is loaded onto your online databases and retrieved.

Measuring ROI

This is an essential step in gauging the success of your move to the cloud while also helping to tweak areas where you could be doing better. It’s easy to measure the savings in consulting and IT support hours, but it’s also important to find ways to measure the savings you get from increased productivity. Automation will also save you time and money and will provide a better service to your clients. Increased access to your online databases as well as the anytime/anywhere access that you now provide all employees will have a great impact on the way you do business.

Tech Cloud Computing provides a handy cloud computing ROI calculator which can give you an overall idea of how your investment in the cloud is performing. When it comes to investing in cloud computing, most companies agree that it’s a far better way to spend your money than on in-house IT investments. When considering a cloud computing infrastructure that’s right for you, it’s important to invest the time and money you need to get your cloud platform right. Don’t skimp on software management tools so that you maintain complete control over shaping your platforms and getting the most out of your online databases. Measure your ROI to establish areas where your company can improve and grow.