Can moving to the cloud REALLY save money?
A new Nucleus Research white paper helps answer that question. In fact, it shows that cloud-based systems deliver 2.1X the ROI of on-premise systems.
According to the white paper, Cloud application projects deliver 2.1x times the relative return on investment (ROI) of on-premises ones – up 24% since their 2012 analysis, which marked the difference at 1.7x times. And because cloud applications have become increasingly feature-rich, they offer increasing ROI, with little end in sight.
“Companies continue to invest in cloud applications and infrastructure projects because of the lower initial cost and faster time to value. As more and more vendors have invested in moving their solutions to the cloud, the breadth of availability of cloud platforms, applications, and services has grown – as well as the complexity of cloud applications available,” writes Rebecca Wettemann, analyst for Nucleus.
This means that all the great things about cloud applications—adaptability, integration, and customization, not to mention relatively low startup costs and negligible maintenance—are still true, and only become more so as time moves on.
How Your Organization Can Save Money With Cloud Applications
Cloud Delivers 2.1 Times More ROI points out two main numbers that should make anyone considering a switch to the cloud sit up and pay attention.
- Consulting and Implementation: The cost to implement cloud applications is 63% lower than on-premise, up from 40% in 2012.
- Support Personnel: The cost in support personnel for cloud applications is on average 55% lower than on-premises.
Why is the cloud so amazing? It changes seamlessly right along with your business, without the burden of upgrades that require debugging and retraining. As companies like yours realize the multiple benefits of cloud applications, they can feed the high ROI back into the company to grow it in more and better ways.
The Many Benefits of Cloud Applications
Here’s a couple of other things the white paper points out.
If something goes wrong, the vendor for the cloud application has to fix things. And they have to fix it all the way, not just “good enough to keep working”… unlike an on-premises IT department might need to do.
It’s also a good idea to find a vendor you can trust, such as CAL Business Solutions. It prevents the likelihood to “cut and run”—as Nucleus puts it—in the first six months. Save yourself the hassle of switching from a less than satisfactory vendor by doing some additional research on the front end and finding a partner who really understands the needs of your business.
A final number to help persuade you that 2.1 times really is the ROI for cloud implementation: cloud applications use an average of 91% less energy than on-premises. That’s great for your budget and the environment.
The lower startup costs, the flexibility of the applications, the reduced need for support personnel, the maintenance responsibility of the vendor, and the environmental savings—these provide overwhelming proof that “it’s hard to argue against the cloud.”
For more details and analysis, click here to read the whole whitepaper about the very real ROI of cloud solutions.
by CAL Business Solutions, Acumatica Cloud ERP Partner, www.calszone.com/acumatica
