The Economic and Strategic Benefits of Cloud Computing 2014

February, 2014


Based on a recent Computer Economics survey, 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. (12 pp,. 4 Fig.)
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