News Feature | October 5, 2015

Can Cloud Increase Revenue?

Katie Wike

By Katie Wike, contributing writer

Healthcare Cloud Clients

Businesses believe adopting cloud computing technologies will ultimately increase their revenue, according to a study sponsored by Cisco.

A recent Cisco report finds a second wave cloud adoption may be on the way, spurred by promises of increasing revenue. According to the study, companies are "no longer focusing just on efficiency and reduced costs, but rather looking to cloud as a platform to fuel innovation, growth, and disruption."

“As we talk with customers interested in moving to the second wave of cloud, they are far more focused on private and hybrid cloud — primarily because they realize that private and hybrid offer the security, performance, price, control, and data protection organizations are looking for during their expanded efforts,” explains Nick Earle, SVP, Global Cloud and Managed Services Sales, Cisco in a press release. “This observation, which drove our strategy to build a portfolio of private and hybrid infrastructure and as-a-service solutions, is reflected in the new IDC study, which shows that 44 percent of organizations are either currently using or have plans to implement private cloud and 64 percent of cloud adopters are considering hybrid cloud.”

Fierce Content Management reports the study found of the 3,400 organizations surveyed:

  • 44 percent currently use a private cloud or have plans to do so in the near future
  • 37 percent currently use the public cloud
  • 83 percent said they intend to "work with their major incumbent provider" to carry out upcoming cloud use or adoption

Respondents also believed the cloud had a positive impact on their organization’s revenue. Between reduced costs and additional revenues, the estimated benefit per cloud based application ranged nearly $3 million.

“Numerous IDC studies have shown that organizations with advanced cloud adoption have better business outcomes, including stronger business performance, better top-line revenue, improved strategic IT allocation, greater flexibility, reduced costs, and increased service performance, and these gains compound as cloud use grows,” said Robert Mahowald, VP, SaaS & Cloud SW, IDC. “But most organizations are not very far along the adoption journey, and need to focus on the skills, methodologies, and best practices required to get themselves to the next level.