Companies waste billions with unused software – Five good reasons for the cloud

August 8, 2014

The european mid-sized companies waste billions of IT investments with inefficient use of the solutions they bought. This is the devastating result of a study done by software vendor Sage. If we take a closer look to the different reasons of this disaster we find out five good reasons for the cloud.

5_Reasons

The cloud will conquer the market.

Not only in IT security but also in efficiency of IT investments the european mid sized companies prove themselves as disasterous. A survey including 600 IT decision makers shows the devastating situation: On average each participants wasts 43.000 Euro of IT investments with inefficient use of the solutions. Assumed to all european mid sized companies this means that every year 9.6 billions are tossed out of the window.

Funcional overlay and bad training cause inefficiency

Most participants of the study claim functional overlays to other solutions and insufficient employee training to be the main reason for the deficits. Fortunately the study also shows a light at the end of the tunnel: 70% of the IT deciders consider the use of cloud solutions.

Five good reasonst for the cloud

If you ask us, there sould be 100% willing to join the cloud. Especially after the other results of the study. Because the cloud gives solutions to the problem of IT inefficiency.

  • Pay-per-Use means more efficiency:
    One of the basic cloud principle is you pay only what you use. As long as this is your payment model, you do not waste any money for not using a service. Beyond that you can cancel most of the cloud services whenever you want to.
  • IT ressources are not bound
    Trustable cloud providers give you service level agreements that bind them to an unobstructed service. This means not only saftey for you but also less use of physical ressources and less maintainence efforts.
  • Software is always up to date:
    Cloud vendors update their services centralized. You do not need to care about updates and still you always have the latest version.
  • Train your employees:
    Cloud services are scalable. With one click you create hundreds of new user accounts. With this feature you can easily start trainings for your employees where everyone has their own working environment. And remember Pay-per-user: You only pay for what you use.
  • The cloud will come anyway
    Most software vendors switch their product development to the cloud. Big players like Microsoft or Adobe are only the first movers of a whole market development. Most ERP and CRM vendors go the same way into the cloud.

From efficiency to existence

This is why we conclude that especially mid-sized businesses have to use the cloud for two reasons: Considering the Sage study it is neccessary to improve the efficiency of IT investments.

But if you take a look into the future, there is a much bigger thing happening: Cloud solutions will conquer the markets. And only those who set their businesses towards the cloud will not only safe money with efficiency but will also reduce costs for cloud migration. Those companies who miss the call will not only stay behind the market regarding their IT efficiency but also their whole value added chain.

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