New Report Links Cloud Usage to Faster Revenue Growth
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Companies with advanced cloud computing operations grow revenues 2.3 times faster than their peers, according to research released Thursday by CloudHealth Technologies.
The Secrets of the Cloud Leaders survey shows that enterprises executing a cloud plan are also 2.3 times more likely to see cloud as a driver of competitive advantage.
CloudHealth surveyed 388 decision makers at U.S. enterprises, focusing on organizations with over 500 employees. It found no major demographic indicator of cloud leadership, meaning that any company has the opportunity to gain the advantages of trailblazers with the right tactics and processes.
“That the cloud has redefined business is undeniable,” Melodye Mueller, VP of Marketing and Strategic Alliances at CloudHealth Technologies said in a statement. “The question has now become: how do you unlock its maximum potential? Even top cloud users wonder where they stand in terms of their cloud operations best practices. They want to know which strategies yield optimal results and how they are doing against their peers.”
CloudHealth says challenges related to chaos and sprawl, including lack of visibility and cost spikes, are preventing companies from achieving the speed and profit gains they were hoping for from cloud computing. This is despite 90 percent of companies having some kind of cloud strategy, according to a recent study by North Bridge and Wikibon.
Cloud leaders were almost unanimous (99 percent) in reporting they are “somewhat or extremely efficient” in delivering applications and services, versus 41 percent of those in the bottom tier of cloud results, and leaders are four times more likely to roll those new applications an services out quickly. They are three times more likely to respond quickly to risks, three times as likely to take advantage of sophisticated pricing strategies, and 2.5 times as likely to have a comprehensive and clearly communicated strategy for managing cloud costs.
Education and approach appear to be major distinguishing factors between those enterprises benefiting most and least from the cloud. Leaders are 50 percent more likely to understand the benefits and differentiators of different cloud platforms, and are 4.6 times as likely to view cloud deployment optimization as a continual process, according to the survey results.
Leaders are also ten times as likely to have a “crystal clear vision” for the transition from a traditional build philosophy to the cloud, and twice as likely to have centralized governance for migrating workloads.
Clarity of vision and a continual optimization as key indicators of achieving cloud benefits for enterprises makes sense given the likelihood that it involves hybrid environments, as suggested by an EMC report last year.