Trends Report

Drive Savings And Profits With Cloud Economics

May 22nd, 2012
James Staten
With contributors:
Christopher Voce , Jessica McKee


We all believe that cloud computing can save us money but aren't sure how to maximize these savings. Firms almost always consider cloud computing a cost advantage compared to the in-house, always-on enterprise data centers. The cost benefits could be legitimate if you pinpoint your traffic patterns; there is something great about the pay-per-use model of cloud computing, but it makes no real difference if you are using it all the time. The key is in understanding how the applications you place in the cloud align with the economics of the various cloud services out there today; for instance, understanding when to use a public versus private cloud. As a CIO, you need to gain knowledge and awareness of the costs of cloud services. This report, an update to "The Three Stages Of Economics" originally published on April 28, 2011, outlines the business plan of Forrester's solution for CIOs working on cloud computing. In this report, Forrester describes three stages of cloud economics and how you can achieve higher return for your company by moving through the stages.

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