Almost 90 percent of businesses in the US and UK have saved money by using cloud services, and more than half have put the savings back into the business through hiring more staff, boosting wages, and investing in product innovation, according to new research by cloud hosting provider Rackspace.
Rackspace, Manchester Business School and Vanson Bourne surveyed 1,300 organizations in the US and UK about the impact cloud services has on cost savings, profits, and innovation, and the numbers are promising for service providers looking to prove the business case of cloud services.
Rackspace found that 56 percent of organizations agree that cloud computing has helped boost profits, and 68 percent said the use of open source cloud is on the rise, which is good news for Rackspace as it pushes its open cloud, which was recently bolstered with the appointment of open source licensing expert Van Lindberg.
The US is leading the way in open cloud deployments, with 70 percent of organizations in the US having deployed open cloud, compared to 42 percent in the UK; 86 percent of US organizations feel that open standards support their ability to innovate. Open source provides freedom to experiment, and innovate, according to a feature last year on the opportunity around open source for hosting providers.
Aside from open source cloud deployment, the research brings to light some interesting statistics around cloud hosting and startups, an area which Rackspace has a lot of experience in through its startup programs which provide cloud credits and mentoring to startups.
According to the study, 52 percent of the startups surveyed said they wouldn’t have been able to afford on-premise IT resources at the time they wanted to launch. This is a really interesting finding that supports what many hosting providers have sought to address with their own startup programs, by providing free cloud resources, like ProfitBricks has done through its new Startup Foundation Program.
“Cloud computing is heralding a boon for startups at a time when they are most needed. By making high end computing resources available on flexible payment terms at the push of a button we are significantly reducing the level of investment required to set up shop,” Dr. Brian Nicholson, senior lecturer at Manchester Business School said in a statement. “It has arguably never been easier to start a business and much of that is down to the flexibility of cloud computing.”
Talk back: How does Rackspace’s cloud research support your own initiatives in selling cloud services to business customers? Did any of the findings surprise you? Let us know in a comment.