Nucleus Research Reveals Cloud Applications Deliver 2.1x ROI Than On-Premises Systems
May 3, 2017
More executives are making a big decision: stick with an on-premise application or switch to the cloud? A new whitepaper released by Nucleus Research that highlights how the cloud saves organizations money might help nudge them in the right direction.
In the first place, cloud application projects deliver 2.1x times the relative return on investment (ROI) of on-premises ones – up 24% since their 2012 analysis, which marked the difference at 1.7x times. And because cloud applications have become increasingly feature-rich, they offer increasing ROI, with little end in sight.
“Companies continue to invest in cloud applications and infrastructure projects because of the lower initial cost and faster time to value. As more and more vendors have invested in moving their solutions to the cloud, the breadth of availability of cloud platforms, applications, and services has grown – as well as the complexity of cloud applications available,” writes Rebecca Wettemann, analyst for Nucleus.
This means that all the great things about cloud applications—adaptability, integration, and customization, not to mention relatively low startup costs and negligible maintenance—are still true, and only become more so as time moves on.
Consulting and Implementation: The cost to implement cloud applications is 63% lower than on-premise, up from 40% in 2012.
Support Personnel: The cost in support personnel for cloud applications is on average 55% lower than on-premises.
Why is the cloud so amazing? It changes seamlessly right along with your business, without any burdensome need to roll out a bi-annual upgrade that requires debugging and retraining. As companies like yours realize the multiple benefits of cloud applications, they can feed their insanely high ROI back into their company to grow it in more and better ways.
Even More Benefits of Cloud Applications
Here are a couple of other things the Whitepaper points out. (Spoiler Alert: Cloud is better in still more ways.)
If something goes wrong, the vendor for the cloud application has to fix things. And they have to fix it all the way, not just “good enough to keep working”… unlike an on-premises IT department might need to do.
It’s also a good idea to find a vendor you can trust (learn more about DimeSoft here). It prevents the likelihood to “cut and run”—as Nucleus puts it—in the first six months. Save yourself the hassle of switching from a less than satisfactory vendor by doing some additional research on the front end and finding a partner who really understands the needs of your business.
A final number to help persuade you that 2.1 times really is the ROI for cloud implementation: cloud applications use an average of 91% less energy than on-premises. That’s great for your budget and the environment.
The lower startup costs, the flexibility of the applications, the reduced need for support personnel, the maintenance responsibility of the vendor, and the environmental savings—these provide overwhelming proof that “it’s hard to argue against the cloud.”