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

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.
FacebookTwitterLinkedInGoogle+Share

Sorry, comments are closed for this post.

Join Our Newsletter

Receive updates each week on news, tips, events, comics and much more...

Advertising Programs

Click To Find Out!

Sponsored Posts

Sponsored Posts

CloudTweaks has enjoyed a great relationship with many businesses, influencers and readers over the years, and it is one that we are interested in continuing. When we meet up with prospective clients, our intent is to establish a more solid relationship in which our clients invest in a campaign that consists of a number of

Popular

Top Viral Impact

Cloud Computing Adoption Continues

Cloud Computing Adoption Continues

Cloud Computing Adoption Continues Nowadays, many companies are changing their overall information technology strategies to embrace cloud computing in order to open up business opportunities.  There are numerous definitions of cloud computing. Simply speaking, the term “cloud computing” comes from network diagrams in which cloud shapes are  used to describe certain types of networks. All

Cloud Infographic – Big Data Survey: What Are The Trends?

Cloud Infographic – Big Data Survey: What Are The Trends?

Jaspersoft Big Data Survey Shows Rise in Commitment to Projects and Decline in Confusion Nearly 1,600 Jaspersoft Community Members Participate in Second Jaspersoft Big Data Survey San Francisco, February 4, 2014 – Jaspersoft, the Intelligence Inside applications and business processes, today shared results from its Big Data Survey. Nearly 1,600 Jaspersoft community members responded to

Can I Contribute To CloudTweaks?

Yes, much of our focus in 2015 will be on working with other influencers in a collaborative manner. If you're a technology influencer looking to collaborate long term with CloudTweaks – a globally recognized leader in cloud computing information – drop us an email with “tech influencer” in the subject line.

Please review the guidelines before applying.

Whitepapers

Top Research Assets

HP OpenStack® Technology Breaking the Enterprise Barrier

HP OpenStack® Technology Breaking the Enterprise Barrier

Explore how cloud computing is a solution to the problems facing data centers today and highlights the cutting-edge technology (including OpenStack cloud computing) that HP is bringing to the current stage. If you are a CTO, data center administrator, systems architect, or an IT professional looking for an enterprise-grade, hybrid delivery cloud computing solution that’s open,

Public Cloud Flexibility, Private Cloud Security

Public Cloud Flexibility, Private Cloud Security

Public Cloud Flexibility, Private Cloud Security Cloud applications are a priority for every business – the technology is flexible, easy-to-use, and offers compelling economic benefits to the enterprise. The challenge is that cloud applications increase the potential for corporate data to leak, raising compliance and security concerns for IT. A primary security concern facing organizations moving