If You Think You'll Save Money with Cloud Computing, Think Again

December 6, 2011

More than half of organizational users saved little or no money after transitioning to cloud computing, according to a new study, and only 14 percent actually downsized their information technology departments after moving to the cloud.

The findings could concern federal IT officials who have said they would save roughly $5 billion annually by 2015 by transitioning about a quarter of the government's $80 billion annual IT budget to private, public and hybrid clouds.

About one-fourth of 3,500 public and private organizations recently surveyed reported no savings with cloud computing and about 35 percent saved less than $20,000, according to the study funded by CSC, a major government IT vendor, and conducted by TNS, a market research firm. 

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