The Economics of Cloud Computing

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When exploring the cost benefits of leasing analytics software via the cloud model, there are several factors to examine.

Time to Market

One of the key consideration for using cloud-based analytics is time to market. Under a cloud model, end users can be up and running within a matter of hours, not months. This can enable targeted users and project teams to act more quickly on time-sensitive market or customer opportunities ahead of competitors.

Each day a company is able to make use of analytics is time the organization has to solve business problems, identify new business opportunities, and optimize operations.

Buy Only What You Need

One of the benefits of a cloud-based analytics model is that you only pay for what you use.

For instance, let’s say a company’s executive team decides that it wants members of the purchasing department to use analytics to evaluate all the company’s third-party contracts to identify possible cost savings and other alternatives in the market. Let’s further add that this, at most, is a six-week project.

While some employees will make extensive use of analytics software, some might only be occasional or seasonal users. For the purchasing department example above, it may make more sense for them to lease analytics software for the duration of their project, rather than buy.

Reduced Maintenance for Cloud Access

Another economic benefit of cloud analytics is easier maintenance. With on-premise analytics tools, new functionality and features are typically not upgraded immediately, so users can spend months – sometimes years – using older software.

Using cloud analytics, upgrades can be done with the flip of a switch and conducted transparently for end users. This saves time for the enterprise while making it easy for employees to access the latest functionality they need.

Lower Operational Costs

Cloud-based analytics also provide important ancillary benefits to organizations that are looking for opportunities to reduce operational costs. With a cloud model, all hardware and personnel requirements shift to the analytics provider. This enables resource-constrained IT teams to focus their energies on those IT/business projects that deliver the greatest business value to the company, resulting in more productive use of IT personnel.

Next Steps:

  • We invite you to watch our complimentary, on-demand webcast, “Why Analytics Belongs in the Cloud: Live Q&A with Martha Bennett.” In this webcast, Martha Bennett from Forrester Research Inc. and Ivan Casanova from TIBCO will discuss the trends – and the risks – in cloud computing. They will also help you figure out which risks are real, which are overhyped and which are real but solvable.
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