Will Cloud Computing Really Cut Costs?

It's being sold as one of the key advantages of cloud computing. But is there really money to be saved, wonders Simon Brew?

As Ovum analyst Laurent Lachal told us when we asked whether he thought cloud computing could save organisations money, "it depends". And it depends on a series of factors, from the cloud solution that's deployed, to the manner in which it's utilised.

The ideal result, and it's a feasible one, is that cloud computing can result in a more efficient way of working and can bring in economies. But it's not a simple menu of choices sitting in front of those considering adopting the cloud.

It's not necessarily because of the complexity of getting a solution set-up, more that real and solid thought needs to be put into what's required before a solution is chosen. Common sense, perhaps, but nonetheless not always adhered to.

Furthermore, Ovum also noted in the key messages of its extensive report that "public cloud costings evolve, not always as expected or for the better," and at one stage it points towards a "pay as you grow" approach.

Advertisement
Advertisement - Article continues below

While, therefore, the cost of physical software is negated by a cloud approach, there's still a level of spending, which varies depending on what mix and scale of private and public cloud solution is deployed.

There's not necessarily a one-model-fits-all answer here (there's an abundance of different routes that can be taken, after all), and nor is their a guaranteed economic benefit to following the cloud route. Yet there are benefits beyond the balance sheet, and, in truth, a carefully-managed cloud project can yield both productivity increases and budget savings.

Approached with just one of those criteria in mind, and the cloud may just be a tougher sell. But with both? That's where the current benefits of cloud computing arguably lie.

So ultimately, yes, cloud computing can save money. But, as Ovum notes, "the lure of cost savings usually turns out to be a triumph of hope over experience."

Featured Resources

Application security fallacies and realities

Web application attacks are the most common vulnerability, so what is the truth about application security?

Download now

Your first step researching Managed File Transfer

Advice and expertise on researching the right MFT solution for your business

Download now

The KPIs you should be measuring

How MSPs can measure performance and evaluate their relationships with clients

Download now

Life in the digital workspace

A guide to technology and the changing concept of workspace

Download now
Advertisement

Most Popular

Visit/operating-systems/25802/17-windows-10-problems-and-how-to-fix-them
operating systems

17 Windows 10 problems - and how to fix them

4 Nov 2019
Visit/strategy/28115/the-pros-and-cons-of-net-neutrality
Business strategy

The pros and cons of net neutrality

4 Nov 2019
Visit/domain-name-system-dns/34842/microsoft-embraces-dns-over-https-to-secure-the-web
Domain Name System (DNS)

Microsoft embraces DNS over HTTPS to secure the web

19 Nov 2019
Visit/social-media/34844/can-wikipedia-founders-social-network-really-challenge-facebook
social media

Can Wikipedia founder's social network really challenge Facebook?

19 Nov 2019