July 21, 2014
A recent Harvard Business Review Analytic Services study shows that the most aggressive companies going after cloud computing services are looking primarily for improvements in business agility, not costs savings.
This information comes from a recent CIO article that discusses the nature of the study, and the possible downfalls for businesses looking to the cloud to simply save themselves some money. Angelia Herrin, research director at HBR, spoke about the results of her company's study:
"The people that are really getting competitive advantage are the ones who are moving aggressively," Herrin said. "And they're certainly not leading with cost as a reason to do this."
For its research, which Verizon (News - Alert) sponsored, HBR surveyed 527 "Harvard Business Review" readers in large and mid-size companies around the world. Among those readers, 70 percent of them indicated that their companies had adopted cloud computing, and within the 70 percent, 35 percent said their organizations were "aggressively" going after cloud computing solutions where ever it would benefit them.
Furthermore, respondents showed that business agility was leading reason for why their enterprises were exploring cloud-based solutions. Nearly a third of all 527 respondents, 32 percent, said business agility "was their primary reason for pursuing cloud," CIO states. This is followed not-so-closely by increased innovation, lower costs, and scalability at 14 percent, and 13 percent respectively. Among those respondents the study classified as "aggressive adopters," 41 percent said business agility was their primary reason.
Results show that businesses may be saving some money by moving operations to the cloud, but even the businesses which are not entirely immersed in cloud computing did not say that their primary reasons for pursuing it was to lower costs. This has led Herrin to claim that businesses taking that sort of angle are "really losing out", because there is so much else that cloud computing can do for businesses. Agility itself, she says, helps businesses enter new markets, improve their productivity, and improve their responses to customers...Read More
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