How Cloud Computing Helps Cut Costs, Boost Profits

Grazed from CIO. Author: Thor Olavsrud.

The decision over whether to move your organization’s IT to the cloud can be a daunting one. After all, it means a wholesale change in the sourcing and delivery of IT products and services. However, many companies are making the leap, at least for select capabilities—a recent by CDW of 1,242 IT professionals found that more than half of organizations are moving a variety of capabilities to the cloud. And a majority of them are recognizing cost savings and increased profits, according to another study by Rackspace Hosting.

"The findings were pretty telling in terms of the adoption of cloud computing and the benefits of cloud computing," says John Engates, CTO of Rackspace Hosting. "The bottom line is cloud saves companies money and increases their profits." Rackspace, in conjunction with the Manchester Business School and Vanson Bourne, recently conducted a survey of 1,300 companies in the U.K. and U.S., supplemented by qualitative telephone interviews by the Manchester Business School with companies that used the cloud during December 2012 and January 2013…

The study found that 88 percent of cloud users pointed to cost savings and 56 percent of respondents agreed that cloud services have helped them boost profits. Additionally, 60 percent of respondents said cloud computing has reduced the need for their IT team to maintain infrastructure, giving them more time to focus on strategy and innovation. And indeed, 62 percent of the companies that have saved money are reinvesting those savings back into the business to increase headcount, boost wages and drive product innovation…

Read more from the source @ http://www.cio.com/article/730036/How_Cloud_Computing_Helps_Cut_Costs_Boost_Profits