Research Study: Cloud Financing And Associated Justification

Research Study: Cloud Financing and Associated Justification

Queries surrounding cloud computing financing and associated pecuniary rationalization have lately been investigated in a novel research study involving feedback more than 900 business professionals and IT firms combined. The study has been undertaken by CompTIA, the foremost IT vendor industry association.

In majority of circumstances, the relevant information technology departments are responsible for the fiscal arrangements pertinent to the organizations’ cloud appetite. A hefty 56% of the surveyed ventures pay for their cloud computing resources via the IT departmental budget head. In addition, 28% of the companies fervently wait for their ever essential hop onto the cloud computing bandwagon that remains subject to approval of the special endowment requested for the said shift.

The findings unveil another prevalent trend – businesses now are not reliant upon the IT department alone for cloud funding. About 48% of companies have been found billing their respective cloud service provider(s) by means of dedicated line-of-business budget provisions perceived as imperative to running the enterprise.

The multitude of available options aimed at fuelling the relevant cloud services translates to the important development that ventures nowadays are ankle deep in investigating the dynamics of cloud financing. Justifying the cloud-incurred expenses has become equally vital for companies. A greater number of present day financial advisors and managers are eager to determine where the recompense will take place. An estimated 53% of the repliers that actually do compute a prospective gain on investment require a higher level of fiscal dynamics detail; while on the other hand, 47% are in need of a comparatively moderate level of the same.

Probing further, the associated return on investment reveals splendour for cloud zealots. A whoping 79% of companies, having passed though the painstaking dual stage process of (i) scrutiny before allocating funds for cloud initiatives and (ii) post-implementation follow up, proudly report that the shift to the cloud has lead to unsurpassed savings. The gains have either been well in-line with or have easily surpassed the formulated return estimates.

The research findings shed light upon another dimension of rate of returns relatable to the ever-important cloud shift. Regardless of how tempting it seems, the cost savings might not be the optimized quantifier of cloud computing success. The report clearly points out that the number of firms experiencing cloud returns dipping below the original estimates significantly increases after the second year of cloud adaptation courtesy of latent costs mounting over time. The beginning of cloud endorsement, however, is cost efficient and appealing.

It would be unjust not mentioning the plausible positives that may lead to superior return on investment, but at the same time, are complicated to quantify. Such factors include but are not limited to suppleness, elasticity, customer satisfaction and time to market. The impact might not be as mathematically traceable as soaring ROI measures; cloud computing endorsement is still bound to influence the said factors constructively, bringing excellence to the venture overall.

By Humayun Shahid

About Humayun

With degrees in Communication Systems Engineering and Signal Processing, Humayun currently works as a lecturer at Pakistan's leading engineering university. The author has an inclination towards incorporating quality user experience design in smartphone and web applications.

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