According to a new report, firms that have migrated the majority of their IT to the cloud save over 15% on IT spending as a percentage of revenue. The research, carried out by Computer Economics, found reductions in data centre and IT personnel costs.
The survey of seven organisations that either fully or largely migrated their systems to the cloud found that IT operational spending as a percentage of revenue was reduced by 16.3 per cent on average, while IT operational spending per user was reduced by an average of 18.5 per cent.
The organisations that were that surveyed included two manufacturing companies, a life sciences company, a wholesale distributor, a systems integrator and an online content provider. All had annual revenues between $50 million and $550 million and employed between 135 and 860 people.
Respondents used a variety of cloud providers, including Amazon, Autodesk, Box.com, Coupa, Docusign, Insperity (ExpensAble), FinancialForce, Google, Infor, Microsoft Dynamics, NetSuite, Okta, Paylocity, Plex, Rootstock, Salesforce.com, Saleslogix, Ultimate Software, Virtustream, Workday, and yieldEx.
As a result of the savings delivered by cloud uptake, it was found that organisations are able to spend more on new initiatives and less on ongoing support.
In a statement, Computer Economics wrote: "The cost savings, combined with strategic benefits in speed, scalability, and agility, argue in favour of organizations moving aggressively to the cloud."