Large US companies that leverage cloud computing can achieve $12.3 billion in annual energy savings and annual carbon reductions of 85.7 million metric tons, equivalent to 200 million barrels of oil, which will be enough to power 5.7 million cars for one year, according to a new study.
The study by independent analyst research firm Verdantix and sponsored by AT&T, "Cloud Computing: The IT Solution for the 21st Century," reveals that companies plan to speed up their adoption of cloud computing from 10% to 69% of their information technology spend by 2020.
Organisations that adopt cloud computing can also decrease capital expenditure on IT resources while improving operational efficiency.
The study also analysed the business impacts of transferring an essential business application, human resources, to the cloud and revealed that such an investment could give a payback in under one year.
Cloud computing can also help users avoid costly up-front capital investments in infrastructure, improve time-to-market as a new server can be created or brought online in minutes, provide greater flexibility as clouds allow firms to pay for excess capacity only when they need it, avoid the continual maintenance of excess capacity needed to handle spikes, as well as improve automation that helps drive process efficiencies.
The study suggests that significant non-monetary benefits can be achieved with cloud computing, including business process efficiency, where developers who used to take 45 days to get new servers.
Many of the firms interviewed by Verdantix reported cost savings as a primary motivator, with anticipated cost reductions as high as 40%-50%.
The study notes that the carbon emissions-reducing potential of cloud computing is a thrilling breakthrough, allowing companies to maximise performance, drive down costs, reduce inefficiency and minimise energy use.
