Why Cloud Computing Is A Good Business Decision

IDG reported that about 90 percent of all Fortune 1000 companies have adopted some form of cloud computing and Forrester found the concept has risen from No. 11 to No. 3 on the CIO's agenda for 2011. But a recent CFO Magazine survey found that cloud computing is not necessarily a top priority for CFOs concerned with the overall bottom line.

IT experts from executive services firm Tatum, however, say cloud computing is a good business decision that should be on the CFO's agenda as it provides new options to improve profitability and offers the ability and flexibility to scale operations up or down as the business climate fluctuates.

Comment from Bill Jeffery, partner and technology practice leader for Tatum: CFOs need to understand the positive impact cloud computing has on business. It is not uncommon for companies to achieve sixty percent or more in savings on variable costs in their IT budgets by adopting the cloud to provide some of their IT services. Furthermore, having IT expenses vary with business activity and frees up dollars which can be better spent on initiatives that provide for business agility and competitiveness in the marketplace. Cloud computing is extremely valuable to maintaining a lean IT business and keeping costs at a minimum. Similar to traditional outsourcing, opting for the cloud can be a purely technical decision; however, market leaders position it more as a strategic business decision that allows a shift from fixed IT costs to a variable cost structure--freeing up capital and providing flexibility in uncertain times. 'The cloud is a great place to do business if you know how to do it right. There are so many advantages relative to cost savings in terms of less cash outlay for materials and for personnel needed to support and maintain it. The migration to cloud computing must be well thought out. There is no one 'right' time to move to cloud; it's a decision only your organization can make. That decision can significantly impact the bottom line.

Eight reasons why switching to the cloud would be a wise business decision:

1. Substantial savings for startup costs the first year with no upfront cash outlay for hardware and software purchases
2. Implementation timeframe for cloud is shorter by several weeks and upgrades can be done as needed
3. Implementation cost significantly less with less disruption to the business
4. A lower fixed monthly fee to maintain
5. Decreases stress/burden on IT departments that might already be stretched beyond capability
6. No additional IT infrastructure necessary as the solution provider provides all required hardware and software
7. No need to increase IT staff
8. Automatic routine optimization and regular upgrades to system

Contact: http://www.tatumllc.com