Business Agility and the True Economics of Cloud Computing

Category: Cloud   |   Presented By: Vmware

Executive Summary
New groundbreaking global survey findings demonstrate
the true value of cloud computing to the business. While it is
understood in the industry that cloud computing provides
clear cost benefits, CIOs are having difficulty getting a true fix
on the business value that cloud might offer beyond cost
reduction. These survey results reveal a direct link between
cloud computing and business agility—how business outcomes
are associated with agility, the role of IT for agile companies
and the importance of cloud computing to business leaders.
Rebalancing the IT Equation
What drives IT in your organization—cost or agility? In
economics, it is a supply-and-demand equation. Within the IT
organization, it is a cost-agility equation with most discussions
today focused on cost controls rather than the greater potential
benefit—business agility. We hear “How much capital and
operational expense can I cut with cloud?” more often than
we hear “How will cloud improve revenue or my company’s
competitiveness?” Yet business decision makers outside of
the IT organization have a different perspective.
In a newly released business-agility survey, corporate decision
makers linked cloud computing directly to business agility. This
data is helpful in reevaluating the IT cost-agility equation,
looking at cloud approaches and reframing assessments of IT’s
value to the enterprise. It shows that the hype around cloud
computing is maturing into facts about what cloud can really
deliver to both IT and the business. Game-changing CIOs think
business transformation first, then how technology enables it.
They are the ones strategizing with their CEOs and other
business leaders to look beyond simple cost calculations to
the business agility that cloud computing can enable.
Defining Business Agility
Business agility is the ability of a business to adapt rapidly
and cost-efficiently in response to changes in the business
environment. According to McKinsey & Company, the leading
global management consulting firm, the benefits of agility include
faster revenue growth, greater and more lasting cost reduction,
and more effective management of risks and reputational threats.
Direct Link from Cloud to Business Agility
Forward-thinking CIOs are deploying cloud computing as a strategic
weapon—not just for IT, but to enable full business transformation,
eventually changing how they operate their business.
In a couple of years, many companies will talk about how
cloud helped them create a much tighter connection between
IT transformation and business transformation. That will be the
win in this cloud era.

tags Cloud Computing