The Buzz: Top 7 Benefits of Enterprise Cloud – As Reported by the Enterprises Themselves

In this week’s issue of The Buzz we report what enterprises are saying about the benefits they’ve realized in going to the cloud. We can certainly wax poetic about the benefits of enterprise cloud (and we have, including here, here, and here), but in this post we’re getting it right from the horses’ mouths, so to speak. We use two 2014 surveys to report what enterprises themselves are saying about the benefits of the cloud and augment those insights with information from analysts and journalists.

Top 7 Reported Enterprise Cloud Benefits

1. More speed and flexibility for taking new products or services to market

  • RightScale 2014 State of the Cloud Report: 52% of respondents reported faster access to infrastructure as a benefit of cloud; 46% reported faster time to market as a benefit.
  • InformationWeek 2014 Private Cloud Survey: Respondents ranked their private clouds as highly successful in meeting the goal of shortened time to deliver applications to the business.
  • Gigaom: “The ability to provide business agility…IT’s ability to align with business…An enterprise that can quickly change IT services around new business opportunities can take advantage of those opportunities.”
  • Deloitte: “Speed of deployment…Cloud computing can reduce the time between identifying an information technology need and acquiring the means to fulfill it.”
  • Forbes: “On-demand cloud resources provide the way to try out new ideas without extreme investments in supporting systems. And a shift in business focus can be made fairly quickly.”
  • SAP: “With cloud deployments, capacity and location planning are no longer in the hands of the customer, but are the responsibility of the cloud vendor. This allows companies to respond quickly to any business changes that may arise unexpectedly.”

 

2. Cost avoidance (capex to opex) and cost reductions (greater IT staff efficiency)

  • RightScale 2014 State of the Cloud Report: 34% of respondents reported cost savings as a benefit of cloud and 33% of respondents reported IT staff efficiency as a benefit.
  • InformationWeek 2014 Private Cloud Survey: Respondents ranked their private clouds as highly successful in meeting the goal of more efficient use of IT’s time as well as the goal of lowering capital costs, operational costs, and total cost of ownership.
  • Gigaom: “The ability to avoid capital costs…the enterprise can leverage hardware and software that it consumes as a service.” In addition, “The ability to become more cost-efficient is the ability to operate the business of IT at a lower cost than leveraging traditional systems.”
  • Deloitte: “Companies buy computing literally by the drink, converting the cost of computing from capital expenditures to primarily an operating expense.”
  • SAP: “Cloud solutions provide an ‘easy out’…the business risk is in the hands of the cloud vendor and not the company itself.”

 

3. Scalability

  • RightScale 2014 State of the Cloud Report: 53% of respondents reported greater scalability as a benefit of cloud.
  • InformationWeek 2014 Private Cloud Survey: Respondents ranked their private clouds highly successful in meeting the goal of better scalability.
  • Deloitte: “Cloud allows companies to easily scale resources…they simply pay for more storage or users when the requirement arises. In addition…a company can more efficiently manage their peak load capacity.

 

4. Better performance (higher availability)

  • RightScale 2014 State of the Cloud Report: 33% of respondents reported higher performance as a benefit of cloud.
  • InformationWeek 2014 Private Cloud Survey: Respondents ranked their private clouds highly successful in meeting the goal of better overall reliability.

 

5. Ability to duplicate or adopt successful business processes

  • InformationWeek 2014 Private Cloud Survey: Respondents ranked their private clouds as highly successful in meeting the goal of enabling standardized OS builds.
  • Forbes: “Cloud services are based on the collective learning and input of customers, and new customers immediately are exposed to processes, formulas and interfaces that are well-tested and proven to deliver the best business results.”

 

6. Business continuity

  • RightScale 2014 State of the Cloud Report: 34% of respondents reported business continuity as a benefit of cloud.
  • Forbes: “One of the sticking points of many mergers is the months, or even years, it takes to bring data and records from one system into another…With systems in the cloud, however, the transition is much faster.”

 

7. On-demand, self-service compute

  • InformationWeek 2014 Private Cloud Survey: Respondents ranked their private clouds as successful in meeting the goal of providing business users a self-service portal for select IT services.

 

Sources:

  • Deloitte, “CFO insights: Heading for the clouds.”
  • Forbes, “5 Benefits Of Cloud Computing You Aren’t Likely To See In A Sales Brochure,” 21 Jul 2013.
  • Gigaom Research, “Steps for finding the best route to the cloud,” 6 May 2013.
  • InformationWeek, “2014 Private Cloud Survey,” 30 Nov 2013.
  • RightScale, “2014 State of the Cloud Report,” 2 Apr 2014.
  • SAP, “6 Benefits of Cloud Computing – If You Haven’t Considered It, You’re Way Behind,” 6 Jun 2013.

 

DISCLAIMER: This document is for reference purposes only. The information contained herein should not be relied on and neither IO Data Centers, LLC nor any of its affiliates makes any warranties or representations as to its accuracy.