Cloud computing economics confuse and confound firms

Research from The Cloud Circle reveals decision makers are still unsure when they will see a return on their investment

Businesses are still struggling to get to grips with the economics of cloud computing, research from The Cloud Circle has revealed.

More than 250 senior business, IT and finance decision makers were questioned for the research – entitled The 2nd Cloud Circle Industry Trends Report.

Results show that 56 per cent picked saving money as a primary reason for moving to the cloud. But conversely, 56 per cent of respondents also admitted that they did not know how much they will be able to save from the move.

Additionally, 45 per cent did not know how much money they will need to invest upfront for their cloud computing project, and 30 per cent were unsure of the time frame in which they can expect to realise a return on their investment.

Emma Taylor, founder and managing director of The Cloud Circle, said: “One of the things we hear most often from our members who have either gone through cloud implementations already or are now planning to do so, is that while cost savings are undoubtedly achievable, working out the different figures involved can be very difficult. This is particularly true when comparing potential costs from vendors. We will continue to pass this feedback to them in the hope that they will look to create common, transparent pricing structures that make procurement simpler.

“It is no surprise that agility and flexibility are seen to be as important as cost efficiencies, particularly during these times of serious economic and political uncertainty. Many organisations are looking to use the cloud for innovation purposes – to add value to their processes and offerings – and to give them critical competitive advantage. This is a very positive reaction to the current business climate we face,” she added.