Cloud storage

cloud computing savingsResearch commissioned by cloud specialist Rackspace and given respectability by Manchester Business School says 88 percent of firms who move to the cloud save money.

That’s impressive, but considering cloud companies sell their service on the promise of saving money, that means one in eight customers hasn’t saved money.

And 60 percent of companies said moving to the cloud meant they need fewer IT staff to support infrastructure – that gives them resources for dealing with strategic matters.

Most impressive are the 56 percent of companies who say cloud computing has helped boost profits.

Although this kind of research is often of dubious value – do you think Rackspace would trumpet its survey if it found cloud customers weren’t saving money – there’s an important big picture. Forget Rackspace’s numbers, forget the spin. Here’s what matters:

88 percent of cloud users point to cost savings, according to Rackspace Survey.

4 thoughts on “Cloud saves money, boosts profits

  1. Yeah, baloney.
    Cloud computing doesn’t increase profit, how could it? It’s like saying using MYOB over Excel increases your profit.

    The thing is, you’re trading power/control for money. Okay in some instances, but essentially you are handing your data to someone else and trusting them to be enacting adequate levels of security and redundancy.

    To me, in my situation that would be okay for, say, old emails, but baby photos and videos are getting backed up myself too. Remember, MegaUpload was a cloud storage platform.

  2. Also like to point out the difference between doing research and doing a survey which can be twisted and worded so they can pull what they want out of it. I good example is Time Warner Cable saying their customers say they don’t want gigabit Internet connections. I wonder what the actual question they asked in their survey was? ‘Do you want to pay triple per month for your Internet?’?

  3. My take on the ‘improved profits’ is that it means lower costs and assumes the money not spent on servers and support is all taken as profit.

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