Rackspace Survey Finds Companies Save Money Through Cloud Computing

March 6, 2013

It's no secret that cloud computing makes things easier and more efficient for businesses on a daily basis, but you could even go a little further – embracing the cloud also works wonders for your bottom line. A new Rackspace survey of 1,300 executives found significant budgetary savings for companies that adopted cloud technologies, according to Cloud Times.

The vast majority of executives polled, 94 percent, said that cloud computing helped them save money. Furthermore, more than 62 percent said the cloud increased their profits. Researchers also found a 26 percent reduction of the IT budgets in the companies surveyed.

Not all cloud users were created equal. The survey found new startups were the most cloud-dependent by far – 92 percent said that cloud technologies played a key role in their early development, while older, more established companies were much less reliant on the cloud.

Companies are taking notice of all the profits to be made from cloud computing and adopting the new technology at a rapid pace. CDW's 2013 "State of the Cloud" report revealed that 39 percent of organizations are currently implementing cloud solutions or maintaining already existing ones – that figure is way up from the 28 percent recorded at the end of 2011.

Corporate cloud adoption in recent years has been driven by the increase in individuals' cloud use – 73 percent of IT officers polled in the "State of the Cloud" survey said that their employees' habits influenced their decisions to adopt cloud solutions. Also, 68 percent said their employees had directly asked for cloud computing in the workplace.

A number of factors influenced IT officials' decisions to delve into cloud computing in 2012, according to CDW​. Among the most significant factors were software management and licensing costs, IT labor costs and IT-related electric bills.

With all the money companies are generating by adopting cloud solutions, they can turn around and invest that cash in other areas. Rackspace found that 68 percent of the saved funds were invested into developing company products and adding new services.

The study also disproved the conventional wisdom that cloud technology leads to fewer jobs – in fact, 60 percent of the companies that saved money spent some of it on hiring new employees.

The benefits to cloud computing are seen every day on our computer screens, and they're felt in our wallets as well. Businesses both small and large are adjusting accordingly.