Does SaaS save money?

“Based on a survey of organizations that have fully or largely migrated to the cloud, we find that such organizations save on average more than 20% in IT spending as a percentage of revenue.”

For companies to make intelligent decisions regarding the cloud, it is important to understand the relative costs of cloud vs. on-premises systems.

In this report, by the industry group Computer Economics, 13 survey respondents are described in terms of their industries and cloud portfolios. To help better understand the costs and ROI of cloud computing they are then compared by:

  • Their high-level IT spending metrics against standard industry benchmarks
  • Savings they each achieved moving to the cloud
  • Their spending on innovation as opposed to ongoing support.
  • The strategic benefits of cloud computing beyond cost savings, supported via feedback from the respondents.

The report is concluded with recommendations on developing a strategic road map for full migration to the cloud.