Cloud Computing Offers Flexibility, Pay-As-You-Go Elasticity

We recently completed Savvis’ second annual study into IT outsourcing and cloud computing adoption. It revealed the industry now believes the flexibility of cloud computing is seen as an asset in helping organisations recover from the global economic downturn.

The downturn is still having an impact, with strong underlying pressure to do more with less budget highlighted as the biggest issue facing organisations.

IT decision makers now express confidence in cloud computing’s ability to deliver budget savings. Both commercial and public sector respondents predict cloud use will enable IT budgets to decrease by an average of 15 percent, with some expecting savings of more than 40 percent.

Flexibility and pay-as-you-go elasticity are the key drivers for cloud adoption. In the current business climate, people cannot afford to wait 12 weeks - at best - to deploy new infrastructure. Instant deployment of capacity from the cloud is shaping up to be a business advantage.

Witness the 86 percent of business decision makers in financial services who reported they have been unable to develop or pilot business services or projects due to the cost of, or constraints within, their IT infrastructure. For 55 percent of these study participants, this remains a current issue.

The perceived value of managing your own data centre is being replaced by recognition of the value of linking capacity, up and down, to fluctuations in business demand – allowing opportunities to be seized with less capital outlay.

Enterprises that want to take full advantage of the cloud must be sure to work with a provider that not only delivers savings but also enables tight integration between technologies, applications and infrastructure on a global scale, both in the cloud and with legacy systems.