The (Tangible) Business Outcomes of Moving to the AWS Cloud Revealed
How much are organisations saving on average by moving to the Cloud? Can I really increase my business’ productivity? How can the Cloud actually create new efficiencies while reducing risks for my business?
In this post we will answer these questions and more! Learn the tangible benefits of moving to the Cloud. Including average savings and productivity increase.
By the end of this post you will have the information you need to assess the TANGIBLE benefits of moving to the AWS Cloud for your business.
In 2015, IDC interviewed ten organizations from various industries about their use of the Amazon Web Services Cloud.
These AWS customers are using it as their cloud computing solution for business-critical workloads and applications. Industries include: Government, Media/Publishing, Professional Services, Cloud Services, Retail, Software, Financial Services.
What are the tangible benefits for organisations to adopt the AWS Cloud? Here is what the interviewed organisations reported:
“We have happier customers now with AWS who are more willing to stay engaged with us. We’ve reduced our churn rate by about 5 percentage points, which is millions of dollars per year.”
“We faced network bottlenecks with our hosting provider. We put our e-commerce sites on AWS because there’s better connectivity and integration into the mobile community.”
“We’ve gotten at least two grants, in support of an application that we’ve been able to develop with AWS. We wouldn’t have gotten those grants without being able to deploy it – almost $2 million in grants.”
According to the IDC report, surveyed organisations are using AWS because it offers them the best combination of business agility, ease of application development, cost, security, stability, and efficiencies in use and management.
Here is an overview of the results from the IDC study.
TANGIBLE FINANCIAL BENEFITS
- IDC projects that the interviewed organisations will realise increased revenue and productivity benefits worth an average of $173,003 per application per year over five years, or $7.04 million per organisation.
- IDC projects that these organisations will realise savings worth an average of $8,665 per application per year over five years, or $0.35 million per organisation.
- IDC calculates that these organisations will achieve savings on datacenter-related capital and operating expenditures worth $131,073 per application per year over five years, or $5.33 million per organisation.
- AWS customers are managing and maintaining applications 68.1% more efficiently in their AWS environments by reducing the time needed for day-to-day support. According to the report, these efficiencies are valued at an annual average of $133,389 per application over five years, or $5.43 million per organisation.
TANGIBLE BUSINESS PRODUCTIVITY BENEFITS
AWS has dramatically impacted the interviewed organisations’ ability to scale IT resources to support their businesses. This translates into these organisations being able to deploy new equipment such as server resources 97.1% faster and respond to unexpected IT changes in 97.6% less time!
In addition, the average productivity gain among users whose productivity has been impacted by an application running in the AWS environment was 23.1%, which equals an average net productivity increase of 2.5% across all IT users.
TANGIBLE IT STAFF PRODUCTIVITY BENEFITS
Surveyed organisations are managing applications in their AWS environments an average of 68.1% more efficiently compared with maintaining the same environment on-premise or in a hosted environment.
Here is an overview of IT staff productivity benefits in terms of avoided time by tasks.
TANGIBLE IT INFRASTRUCTURE COST REDUCTION BENEFITS
- Servers cost (hardware and related software). AWS has enabled Amazon customers to not only retire servers (372 on average), but to avoid costs for scaling their datacenter environments to support business growth.
- Hosting cost and other services. Organisations reported that they have saved significantly with AWS on hosting costs for growing environments.
TANGIBLE RISK MITIGATION BENEFITS
Organisations using AWS also acknowledged its reliability, stability, and security. They reported experiencing fewer unplanned outages of applications running in the AWS environment, minimising the loss of productive time during downtime.
TOTAL COST COMPARISON
The IDC research shows AWS customers will reduce datacenter hosting and infrastructure costs by 64.3%, IT staff costs for their AWS environments by 63.5%, IT staff time costs for deployment by 57.8%, and the cost of unplanned downtime on productivity by 81.7%.
CONCLUSION AND TAKEAWAYS
Organisations that adopt the AWS Cloud are reportedly able to be more competitive, increase customer satisfaction, innovate faster, and achieve greater productivity with resources that focus on core business enablement.
Here are the highlights of the tangible business benefit AWS brings to organisations.
Apply the following proven parameters to your business to calculate the total tangible benefit of moving to the Amazon Web Services environment.
- 560% 5-year ROI;
- $1.54M Average 5-year discounted business benefits per application;
- 64.3% lower Total Cost of Ownership (TCO);
- 68.1% More efficient IT staff operations;
- $76,800 Additional revenue per year per application;
- 118.4% more applications delivered;
- 81.7% less downtime.
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