While many businesses slammed the brakes on spending and opted to weather out the storm living with existing systems, many decided to act strategically and invest in systems that would lower their overhead without sacrificing functionality and empower them with greater insights into their business allowing them to flourish while other businesses tried to slow the backsliding. The businesses that flourished made the move to cloud computing.
A recent report by Global Industry Analysts Inc. explains that the recession served as a “push” factor for cloud computing:
The recent economic recession saw hordes of companies take to cloud computing as a cost saving strategy. Cloud computing came as a boon for companies during tough economic and financial climate, given that the technology can potentially slash IT costs by over 35%. The bad economy fed the global cloud computing services market as cash, and revenue starved companies prowled for IT solutions that are cost-effective, require minimum to zero investments, and low management of computing resources. Technically, the feature of multi-tenancy, or the ability to scale up or scale down services on demand, makes fiscal sense in tough economic climate. And with cloud computing fitting the bill in every respect, the business case for the technology stands exemplified. In short, recession became the push factor, which tripped the market into the mass adoption stage.
Global Industry Analysts Inc. identified NetSuite as one of key players businesses turned to during the recession. The report also states that given the critical mass of early adopters during the recession, cloud computing is poised for a post-recession boom.
InnoVergent is a cloud computing evangelist. We have seen first hand the benefits that solutions like NetSuite and OpenAir have brought organizations – rapid deployment, streamlined processes stripped of time-consuming and error-prone duplicate data entry, customized dashboards that provide department leaders with key data on key performance indicators, and more.
Savvy business leaders realize that optimizing profitability while growing the business is a far more rewarding exercise than sweating out the cash flow month in and month out. It’s a matter of thriving versus surviving.
