Benefits Of Moving IT Capabilities To The Cloud

By Kristin Amico | Small Business

Moving certain IT capabilities to the cloud is becoming one of the most important issues facing businesses in today’s digitalized environment. Most organizations still can’t decide whether to take this step because it requires a thorough change in the way IT products and services are sourced and delivered. Shifting into a cloud environment, however, helps businesses trim costs and foster profits, providing them with extra cash to expand their workforce, increase salaries and fuel innovation, according to CIO magazine.

Figures taken from a survey among 1,242 IT professionals from tech expert CDW prove that businesses are already starting to realize the benefits as over 50% of organizations now move certain IT resources to the cloud. Other research from Rackspace Hosting shows that the bulk of businesses are already enjoying higher earnings and reduced costs as a result of cloud computing.

According to CDW, the type of IT capabilities going to the cloud is broadly contingent on company size and the industry they specialize in. Larger businesses and government organizations chiefly move conferencing and collaboration applications, while smaller firms look to get the most from cloud storage. Messaging, office and productivity suits, business process applications and compute power are also among the services both small and large firms now tend to assign to a cloud provider.

A separate survey from Rackspace and Manchester Business School, established that 88% of companies using the cloud in the US and UK have managed to curtail costs and 56% said that it resulted in higher profits. Another 60% of the 1,300 companies approached stated that cloud computing allowed IT staff to concentrate on strategy and innovation as they no longer need to maintain infrastructure. Moving to the cloud also allowed 62% of organizations to make cost savings and put the money back into their businesses.

In addition to cutting IT operating costs, cloud computing also helps businesses enhance business efficiency, according to 55% of the respondents to the CDW survey. For 49% of organizations, it is a way to enhance employee mobility, 32% consider that the cloud improves their ability to innovate, while 31% said it gives their IT team more time to work on other projects.

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