Cloud Technology’s Positive Impact On The ROI

Cloud computing in India is not only about low cost of implementation and fast deployment of newer technologies, there is much more than that in it. Confirming this view, Nucleus Research has published a study which says, companies can meet 1.7 times of ROI when implemented in-house. The research was done on 30 companies varying greatly in their sizes, from $30,000 to $10 million. This report verified that there is indeed more than only fast implementation or heavy cost cutting in cloud technology.

One of the information which came out of this study was that companies need to spend 40 percent less on consulting fees and 25 percent less on application support personnel. Changes in the applications can often done by business developers without needing the developers to meddle every time. Also, the cloud vendors take over traditional means of application support and maintenance.

However, ROI improvement belittles every other benefits which cloud can offer. The significant improvement of ROI over the time is attributed to three key differences, as pointed out by Nucleus Research.

  • As the cloud projects are mostly iterative in nature, the business users can adapt and expand freely and at any time, without the need of consulting every time, the companies can easily expand their workflow or the footprint of cloud based applications, without needing to pay any consulting fees.
  • As users can be added (or removed) at any point of the time, the companies are expected to expand their footprints rapidly and identify and utilize the scopes for expansions.
  • Cloud upgrades are transparent to the end users. Thus, the companies can take the advantage of incremental upgrades to drive higher productivity. There is no need to upgrade all at once which can be a bottleneck to many of the start-up companies. Areas like mobile access, improved workflow, a more intuitive user interface or an integrated analytic are few of the aspects which can benefit from this.

In the survey, it was found that 4 out of every 5 companies using cloud technology, that is 80 percent of those companies using cloud computing solution, found that incremental increment of benefit can be achieved without increasing the cost.  Let us quote the conclusion Nucleus Research drew in that report, “Only organizations that plan to never grow, change, or upgrade their application after its initial deployment are likely to achieve better ROI from on-premise applications than cloud ones.”.

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