Sep 292012

Cloud Delivers 1.7 Times More ROI


Companies continue to invest in cloud applications such as AirVault because of low upfront cost and faster time to deployment, but those are not the only reasons to move to the cloud. Beyond their initial payback, Nucleus found that cloud applications deliver 1.7 times more ROI than on-premise ones, largely because four out of five cloud deployments deliver increasing benefits over time.

As Nucleus predicted in its 2012 Predictions, (Nucleus Research l107 – Top Ten Predictions for 2012, October 2011), organizations have continued to invest in cloud applications because of fast deployment and low initial cost. Companies are devoting an increasing share of their IT budgets to cloud projects, with good reason: in examining the ROI of the cloud versus traditional deployments, Nucleus found that, on average, cloud applications deliver 1.7 times more ROI than on-premise ones.

Nucleus found that cloud applications deliver 1.7 times more ROI than on-premise ones. Nucleus’s analysis included more than 70 ROI case audits of cloud and on-premise enterprise application projects over the past three years including CRM, ERP, content management and collaboration, and human resources applications. Overall 3-year project budgets for both the cloud and on-premise deployments examined ranged from approximately $30,000 to multi-million dollar deployments; in fact, the largest project included in the analysis was a global cloud CRM deployment with a 3-year budget of slightly more than $9.5 million.

Download and read the Nucleus study here.