BlogHave You Performed a Cloud Economics Analysis?

Cloud computing can deliver a plethora of business benefits, and as a result, organizations today feel significant pressure to move their services and applications to the cloud. Unfortunately, many companies push towards their cloud initiatives without first having defined goals, concrete business cases, or a complete and accurate picture of the true costs.

The rate of cloud adoption is indeed strong. An Intel report shows that in just over a year, US enterprises will be allocating 80 percent of their IT budgets to cloud computing services. In addition, the report reveals:

  • Organizations are currently using on average 44 cloud services.
  • Companies are storing the following types of data in the cloud:
    • 52% – business intelligence
    • 52% – financial accounting
    • 48% – employee records
    • 40% – customers’ personal information
    • 13% – do not know
  • 13% of companies completely trust the public cloud with securing sensitive data

But is cloud computing financially beneficial to your organization?

With our Cloud Economics Analysis, we help you make knowledgeable and informed financial decisions about the cloud. By comparing the current state of your IT costs with alternative private, public, or hybrid cloud options, we provide objective and realistic comparisons of your cloud versus on-premise solutions. We can help you identify the services that will yield the greatest cost savings and efficiencies in the cloud, and we can help you avoid the risks and pitfalls that ensnare too many IT organizations.

As part of our multi-year analyses, we consider not only expected costs but frequently overlooked expenses such as possible changes in cloud pricing, the performance of the cloud provider, and unexpected usage charges. That means you’ll be more prepared for change management fees, the effect of growth on your cloud costs, and potential exit risks and costs.

Cloud adoption rates are accelerating and will continue to do so. A robust cloud computing policy is a must today to counter Shadow IT, BYOD and other hybrid IT concerns – not to mention the approved use of cloud services. To learn more about our Cloud Economics Analysis, feel free to contact us.  


About the Author

Bob Mauro

Bob Mauro, IT Economist

As an IT Economist for ASG, Bob works as a client advocate by developing business cases, building financial models, and creating customized tools to help customers evaluate return on investment (ROI) and other financial considerations. He also offers a broad base of experience in accounting, finance, and business analysis.