Cloud computing reduces costs by a quarter

Early adopters of cloud computing models seem to have reaped the benefits, according to new research released today.

The study by Fujitsu showed 97 per cent of respondents had made savings by implementing cloud computing projects, with 71 per cent of them saying savings met or exceeded their expectations.

On average organisations were saving 24 per cent on the projects, but for some this cost benefit was as high as 40 per cent.

Only three per cent of companies claimed to have found no cost saving whatsoever.

Darren Ratcliffe, manager of cloud platforms for Fujitsu in the UK and Ireland, said: "There are few technology trends which have caused as much debate and polarisation as cloud has in the last two years. This research is invaluable in helping to separate cloud fact from cloud fiction."

"The findings show that cloud users are reaping the benefits and are achieving and exceeding their expectations."

The most common applications users put into the cloud were website workloads, test and development, and email, whilst finance, accounting and HR/payroll were the least likely.

The majority of respondents had entered into private cloud offerings 73 per cent rather than public cloud 30 per cent proving there were still concerns about taking important data outside of the office firewall.

The biggest concern companies voiced was not knowing where their data was located. Yet, despite the nerves surrounding cloud security, only 13 per cent were worried about their data being accessed by an unauthorised third party.

Ratcliffe claimed private clouds were the right choice when it came to "sensitive data" but the public option offered "IT flexibility, low costs and fast deployment of new business projects with no investment risk."

Overall though, the research made a strong case for the cost benefits of moving towards the buzz word of the year model.

"These results are encouraging for private and public sector alike," added Ratcliffe.

"For business, the speedy implementation of cloud services and the walk-away benefits with no hefty set-up costs, means that it is easier to enter into new innovative technology with less business risk. This makes cloud a key enabler for growth in tough economic times."

"For Government too, the news from early adopters is good with trusted cloud delivering real cost savings that would help make a chancellor smile," he concluded.