Rackspace Survey: Cloud Computing Helps Startups Increase Profits

Study of cloud computing among 1,300 U.S. and U.K. executives, conducted by Rackspace Hosting with support from Manchester Business School in the U.K., found that cloud technologies enable significant budgetary savings.

The objective of this study was to determine whether to allow companies to reduce the cloud computing technology budgets, and determine where they will then invest the savings. Overall, the researchers were able to count the reduction of the IT budget by 26% of respondents in U.S. companies. The vast majority of all respondents (94%) stated that cloud computing somehow helped them save money.

More than 62% of respondents said that cloud technologies contributed to the increased profits of their company. Most dependent on cloud technologies, according to the survey, were startups: 92% of respondents said the representatives of start-up companies that cloud technologies have played a key role in the early stages of company development.

Businesses of all sizes, from the very largest global corporations to startups, say their operations are seeing multiple benefits from cloud computing. Thanks to the cloud, at least half of businesses on both sides of ‘the pond’ are growing with increased profits despite the ongoing economic backdrop. Savings from the cloud have enabled these companies to hire new employees, increase wages and drive innovation.

The money saved by cloud technology, most often (in 68%) is invested in the further development of the company. Businesses use these additional funds for the development of the product line, the development of new services, and other similar tasks. Interestingly, the researchers have been able to refute the widespread belief that cloud technology lead to a reduction in staff. It was found that 60% of companies are spending saved money on the clouds to hire new employees, raise rates and to pay bonuses and raises. Overall, the number of employees in the companies surveyed increased by 28% from the time they moved to cloud computing.

Cloud business applications, as compared to on-premises-solutions, have developed tools to support business processes and communication with clients, as well as powerful research and information services company showing how well it works, how it helps to highlight the weaknesses in the business processes and then fix them. It has arguably never been easier to start a business and much of that is the result of the flexibility cloud computing allows.

One comment

  1. At many sites the majority of datacenter costs are in their personnel. To be truly disruptive, don’t you need to directly attack and displace this cost area?

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