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Report: Cloud Computing Reduces Costs by 15%

The savings comes from lower personnel costs and reduced data center spending.


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A report from Computer Economics finds that full utilization of cloud computing reduces IT expenses by more than 15 percent, whether measured as a percentage of revenue or on a per-user basis. Those savings occurred because organizations reduced their data center spending and because they were able to reduce their personnel costs.

A separate study by Capita IT Services finds that cloud computing helps companies innovate by simplifying their IT structure and enabling greater flexibility. "The organizations that we work with are increasingly using IT as a route to innovation," stated Peter Hands, executive director of Capita IT Services. "Cloud technology is making the process easier, allowing companies to increase productivity by offering trusted applications on the go and on their choice of device."

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