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Your Cloud Strategy Why to Why Not in 2015 By @Infor | @CloudExpo [#Cloud]

Research has shown that most organizations rapidly realize significant cost savings that increase over time

Move Your Cloud Strategy from Why to Why Not in 2015

It's a clear message being heard across the industry - widespread adoption of cloud applications is only a matter of time. However, the tricky part for many is, how much time do organizations actually have to hold out? And why should they switch?

For starters - the cost savings are clear. Research has shown that most organizations rapidly realize significant cost savings that increase over time as they leave behind the array of indirect costs related to legacy on-premise software. A recent IDC study showed that cloud solutions offer an average payback period of 7.1 months and 5-year average ROI of 626 percent, a return few other investments can match. Debate over other issues of cloud computing versus on-premise implementations is making it difficult for many to ignore the bottom-line advantages of choosing cloud-based enterprise solutions.

Moving away from cost, there are other significant potential disadvantages many organizations have to endure when choosing to stay on-premise, which include:

Hardware Maintenance Keeps Mounting
After you finally build and finish the data center - the bills don't just stop there. There will be ongoing maintenance, needs for upgrades, power bills, cooling costs, administrative needs and this will continue to mount up year after year. Money thrown at maintaining an on-premise data center can be used to productively and for more modern solutions, if you are ready to cut the cord on these expenses.

Infor CEO Charles Phillips Keynote at Cloud Expo New York 2013

Inability to Scale, and to Scale Quickly
Rapid response is critical when unforeseen events take place - such as new competition that can come out of nowhere and gobble up market share in a matter of months. On-premise applications aren't as quick to rapidly structure, expand, and scale up operations, like cloud solutions are, which can put a company at a disadvantage when faced with other fast-growing businesses.

Lengthy Processes for Mergers and Acquisitions

In this market, mergers and acquisitions happen very rapidly, and very frequently. Unfortunately, when two organizations merge, so does their software, hardware, infrastructure and processes. The cloud provides a safe, efficient, and economical way to avoid disruption and creates a smoother path to synching all of these processes.

Disruption After Disaster
A thought no one wants to imagine - what happens if a fire or flood tears through your data center? Yes, a back-up is an option, but it's still a massive business disruption to deal with. Moving to the cloud means that you also have recovery and failover capabilities with your precious data that a majority of organizations simply cannot match on their own. Even if a system fails, a cloud provider generally can restore service quickly at another facility to ensure continuity, and few companies can afford to maintain an IT infrastructure with that level of redundancy.

Far from Greening the Enterprise
The need for corporations to reduce their environmental footprint is substantial - but if you have an on premise data center, it's very hard to continue to justify the costs associated with the mass amounts of heating, cooling, power, space and resources needed to keep things up and running smoothly. A cloud structure quickly optimizes resource consumption for a business, and provides a quick and economical way to cut costs, while showing significant, measurable enhancements in environmental sustainability.

Simply put, moving applications to the cloud can replace a variety of direct and indirect software costs with a single, user-based subscription fee. If you weren't considering it in 2014, it's worth a deeper dive into how it can save your organization and add efficiency across multiple divisions in 2015. It's time to move the needle from why cloud, to why not cloud.

More Stories By Lisa Pope

Lisa Pope is Senior Vice President of Global Strategy and Sales, Infor CloudSuite. She is responsible for the global strategy and sales of Infor’s Cloud Solutions, as well as overall value positioning of Infor’s UpgradeX program, allowing existing customers a simple path to the cloud. With 25 years of experience in the software industry, specifically in vertical industries including manufacturing, distribution, retail, and healthcare; she brings direct sales, services leadership, and cloud knowledge to the Infor team.

Prior to Infor, Pope served as Senior Vice President of Global Sales Strategy at QAD, where she managed the overall cloud sales strategy and the North America region. She also spent 10 years as Vice President of Strategic Account Applications at Oracle.

Pope holds two bachelor’s degrees in business and communications from the University of California – Santa Barbara.

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