With Cloud computing, you can scale your computing consumption up and down. The net result is quicker ROI and sustainable savings.
I'm browsing through the Capgemini Application Landscape Report 2014. This is our second edition—an attempt to decode the current state of business applications. The findings are based on an online survey conducted in 12 languages with over 1,100 CIOs and decision-makers from a diverse sample of companies.
One of the questions is aimed at gauging the impact of IT on strategic business priorities. Up to 42% of the respondents expect IT to impact operational excellence. 41 percent expect it to play an active role in risk mitigation. Moreover, a third of the sample size expects it to impact time-to-market.
It’s remarkable how the strategic goals of IT are expanding. There are buzzwords—like outcomes, agility and speed-to-market—floating around the industry. However, cost-saving—for all the talk of going beyond it—still remains a top priority. More than half of the sample size, a staggering 55%, expects IT to impact cost reduction.
And why not, who likes to leave cash on the table? One of the main goals any CIO has is to reduce his/her spend without losing functionality yet improving the user experience.
Well, Cloud computing can help. But, in order to reinvest top dollar in what matters most, it’s imperative to understand how.
For starters, on-premise applications are costly, difficult to enhance, expensive to maintain and inhibit business agility. Cloud computing helps eliminate upfront capital investments. You pay for what you use and pay as you go. It’s like renting applications and infrastructure that deliver business solutions as a service without the headache of ownership. Effectively, you convert rigid CAPEX to flexible OPEX.
Cloud computing leverages economies of scale by offering access to pooled infrastructure. Cloud-managed applications are designed to balance their workload across multiple servers. This is of great advantage, especially to applications with unpredictable and cyclical usage patterns. Sharing computing power enables appropriate provisioning for resources and accurate cost prediction. It allows you to scale up or ramp down usage to suit your business needs, reduce downtime, and boost savings.
Cloud computing also promotes manageability—it allows organizations to focus on their core competencies while Cloud service providers manage non-core aspects. Realized cost savings can be invested in areas like innovation, research, and new product development. This allows you to focus on building apps, being innovative, and deliver value rather than muddle through the mundane tasks required to "keep the lights on."
Getting back to the Application Landscape Report, we asked the sample size to assign a level of significance to Cloud, as a cost-reduction driver. An astounding 66 percent see Cloud adoption as an important driver of reducing business costs. This is certainly true and will be a marker for big change in enterprises as they find themselves able to repurpose dollars and effort towards more meaningful tasks.
To find out more on the state of business applications, click here to download the Capgemini Application Landscape Report 2014: http://www.capgemini.com/alr