Benefits of cloud computing continue growing

Benefits of cloud computing continue growing

March 2

Businesses of all sizes considering implementing cloud computing may be tempted to do so sooner rather than later. A new survey of 1,300 organizations from the United States and U.K. by a cloud hosting provider, Manchester Business School and Vanson Bourne found that a majority of respondents are enjoying many benefits from using the technology.

Overall, nearly 90 percent of participants said they have saved money since adopting cloud-based environments, while more than 60 percent are reinvesting these funds back into their businesses. Another 56 percent said the solution has improved their revenue and 49 percent indicated that their firms have grown since implementing the cloud.

The cloud also allows companies to focus on other aspects of their operations, because 60 percent of respondents said they no longer require as many personnel to manage their infrastructures.

Of the startups polled, 90 percent said that cloud computing made it easier for them to establish themselves. Brian Nicholson of the Manchester Business School, noted that the cloud’s flexibility reduces the investment needed to launch startups.

“It has arguably never been easier to start a business and much of that is down to the flexibility of cloud computing,” Nicholson said.

The potential challenges of the cloud
Cloud computing clearly has many attractive advantages, but some firms can still experience challenges implementing hosted environments. A recent survey of more than 650 business and IT leaders by KPMG found that more than 50 percent of organizations are currently using the cloud. However, a third of respondents said the costs associated with adopting the cloud were higher than expected, while a similar percentage said they experienced some complications deploying the technology.

These problems may be a direct result of businesses putting too much emphasis on the technological aspects of the cloud, rather than how the solution fits within their company goals, according to KPMG Program Leader Rick Wright. If successful, however, cloud adoption can deliver positive results.

“One of the most important lessons uncovered by this research is that business process redesign needs to be done in tandem with cloud adoption, if organizations hope to achieve the full potential of their cloud investments,” Wright suggested.

Cloud computing has quickly become an IT staple and this impact is expected to continue in the near future. Even small businesses and startups have an opportunity to ultimately change how they operate, thanks to hosted environments.