Cloud Computing Reshaping the IT Budget

Companies are rapidly adopting Cloud Computing saving money and increasing profits which they are re-investing on their core business capabilities.

Cloud is a pervasive technology adapted from early stage start-ups to Fortune 500. Cloud Computing help start-ups to bootstrap on a shoe-string budget. The power of the cloud computing pricing model comes from turning CAPEX expenditure into OPEX. With no upfront costs start-ups can spin up servers on a low budget and scale-up as they grow. Large companies on the other hand save from this on-demand usage basis model. For example let’s take a 100 compute node Big Data Cluster used for only 1 hour per day for Data Analytics, the machines would be turned on-demand for the computational needs thereby having a large cost savings as opposed to having dedicated hardware.

Rackspace Hosting together with Manchester Business School conducted a study of 1300 organisations in the UK and US revealed that:-

·         56 per cent have been able to increase profits through using cloud services

·         49 per cent have been able to grow their business through use of the cloud

·         60 per cent say that cloud computing has reduced the need for their IT team to maintain infrastructure, giving them more time to focus on strategy and innovation.

References
1. 88 per cent of cloud users point to cost savings according to Rackspace Survey
https://blog.rackspace.com/newsarticles/88-per-cent-of-cloud-users-point-to-cost-savings-according-to-rackspace-survey/
2. The Economic and Strategic Benefits of Cloud Computing
https://www.computereconomics.com/custom.cfm?name=postPaymentGateway.cfm&id=1931