Are You Headed Towards Irrelevance?

  • By zoltan-szakal
  • November 10, 2016


Why are organizations skeptical about moving to the cloud? Many are not sure what that truly means. Many are concerned about cost. And yet cloud vendors tout that cloud solutions are easier to implement and less expensive to deploy than on premise solutions. Perhaps an example can help.

Intacct was deployed at a leading field service software provider and the statistics are astonishing. Over $300K in average annual benefit and a payback in two and a half months for an ROI of 532%!!!  Nucleus Research, an independent ROI analysis firm, found key benefits of the project included increased productivity and the ability to support rapid growth without a similar growth in staff.

In fact, compared to on-premise alternatives, the ROI delivered by cloud applications is on the rise. Nucleus found that cloud application projects deliver 2.1 times the ROI of on-premise ones—up 24 percent since 2012.

Features and functionality are constantly being added to cloud solutions, many would think that costs would be driven up as a result of this.  Not so

Nucleus noted: “While the average time to deploy a cloud application has increased somewhat (increased complexity of applications such as ERP drive great variability in time to deployment), the relative cost of cloud implementations has actually gone down since 2012. Cloud deployments incur 63 percent lower initial consulting and implementation costs than on-premise ones (in 2012, companies spent 40 percent less on consulting for cloud deployments than on-premise ones). Personnel time to deploy cloud applications in comparison to on-premise ones has dropped as well. On an ongoing basis, companies spend 55 percent less (on average) on personnel to support cloud applications compared to on-premise deployments.”

The fact is, the cloud is not just the way of the future, it’s now. To avoid irrelevance, organizations must be both adoptive and adaptive.

Are you headed towards irrelevance?

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