ROI assessment crucial before implementing cloud technologies

International IT provider Unisys has released a new study which cautions businesses making the shift to cloud technology, advising them to do a full return on investment assessment before commencing. The report claims that firms who execute an ROI in preparation are nearly 50 per cent more successful in cutting costs.

The poll, which was carried out by IDG, surveyed 400 businesses and IT executives throughout eight countries. The results show that 80 per cent of participants expected cost savings when adopting cloud technology, and 82 per cent of those who embarked on a full ROI analysis beforehand eventually achieved savings that matched their initial expectations. This compares favourably with the 57 per cent of those who did not carry out an ROI study who were satisfied with their cost savings afterwards.

Similarly, 68 per cent of participants revealed that they used an external firm to help them migrate to the cloud, with 72 per cent using this partner for cloud planning and strategy. An even higher percentage (79 per cent) said this cooperation with a third-party specialist helped them to achieve the cost savings they expected.

Respondents also reported shrinking numbers of onsite data centres. Presently, 43 per cent of organisations are still using them, but this is expected to drop to 29 per cent within two years. During the same period, public cloud usage will increase from 18 per cent to 21 per cent and private cloud usage from 20 per cent to 28 per cent.

The poll’s questions concentrated on the advantages of cloud computing, with enhanced business continuity and disaster recovery, flexibility, agility, lower capital costs, more efficient storage and IT standardisation all high on the list.