Enterprises can glean different benefits from moving their data and applications to the cloud. When companies choose to place their money and trust in new technology, they want to know whether or not it’s a good investment for the future. Is it cost-effective? What are the advantages? These are questions that executives will ask before jumping into the cloud, but more often than not, their worries are assuaged when they see the significant gains that cloud computing can offer.
Cloud computing is catching on, and global cloud traffic estimates show that adoption of cloud services is growing at a fast rate. Cisco projected that by 2018, 69 percent of global cloud workloads will be in private cloud data centers. In addition, from 2013 through 2018, annual global cloud IP traffic will reach 6.5 zettabytes, basically quadrupling during that five-year span. This means that more businesses – enterprises and small- and medium-sized companies alike – are going to continue migrating their computing portfolios to the cloud and taking advantage of those benefits in the process.
Why is cloud computing worth your money? Here are a few reasons:
“Activision garnered a 378 percent ROI from deploying a cloud solution.”
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One of the most important cloud computing advantages that companies can experience is a significant return on investment. Harnessing more computing infrastructure and being able to run workloads in the cloud environment allows companies to perform better, be more secure and maintain a higher level of business continuity – this all leads to cost-cutting benefits in the short and long term.
For instance, when video game publisher Activision invested in a cloud deployment to create a more modern approach to customer support, the cloud solution the company utilized was efficient and useful. It assisted IT workers in handling the global scale of the enterprise with ease, routed cases to appropriate team members and helped define and implement reporting tools that Activision can use to analyze its data stored in the cloud. Activision also garnered a 378 percent ROI from deploying this cloud solution, according to Nucleus Research.
The disaster recovery and security benefits enterprises can gain from utilizing the cloud should alone be enough to motivate a shift to a cloud environment. A 2014 study from the Ponemon Institute found that the average cost of a data breach is $3.4 million, a 15 percent increase over 2013. You want to protect sensitive information and make sure your company continues to function in case of a disaster. With cloud backups, DR can be easy and painless.
Along with significant ROI numbers, cloud infrastructure can be utilized as a pay-as-you-go model – in other words, you only pay for the computing power your company actually uses. Traditional on-premises server equipment purchased by enterprises has finite computing power, and as businesses grow, they may have to invest in additional machines that can become outdated and require regular maintenance. With an on-premises strategy, computing power is limited to the physical infrastructure an enterprise has.
You could be running too many workloads for on-premises servers – or too few. A recent Anthesis Group report found that worldwide, 30 percent of servers in data centers are comatose, meaning the lights are on and they’re using up energy, but they aren’t running any workloads or doing any meaningful computing. On a smaller level, enterprises may find that they aren’t fully utilizing the power provided by their IT equipment. With pay-as-you-go cloud infrastructure, you pay for what you use. This means that cloud deployments grow as your company does – providing the kind of easy scalability that can help ease budgets.
These are only a couple reasons why a cloud investment is a sound choice for 2015 and beyond.