QUERCUS BLOG
Industry Insights from Our Experts

Monthly Archives: September 2012

Economies of Scale and Cloud Computing

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Filed under Cloud Practice, Growth & Development, Software Architecture

Many of the conversations I have are with business executives who ask: “What value will I see from using the cloud?”

Measuring the Value of IT

According to a 2011 Gartner report, 66 percent of IT spending was used to sustain existing products and services. 1 The report also indicates that 20 percent of IT spending was used for improving on existing products and services, and 14 percent on introducing new ones. The report also shows that these numbers have not changed much over the last 6 years.

As mentioned in the report, there are three core activities that every business tries to achieve. The first is to sustain existing products and services. The second is to improve on existing products and services, and the third is to introduce new ones. These activities, which are also known as: “run, grow, and transform” are each activities that business invest into for IT. Read More »

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