Companies Shifting to Cloud Computing Save Energy & Cut Waste

Companies Shifting to Cloud Computing Save Energy & Cut Waste

It’s a good thing the rise of cloud computing is essentially unstoppable: New research shows just how much energy companies can save from a migration, even while the same research shows even wider business benefits from cloud computing.

A study just published by CSC asked more than 3,600 IT decision makers across eight countries in the Americas, Europe and Asia about how and why their companies migrated to remote computing options. While the top-level findings, especially around green IT, were not surprising, the broad array of benefits businesses accrued from the cloud chart some new territory.

The survey found that 64 percent of organizations cut their energy use and reduced waste as a result of a shift to cloud services. That finding is certainly in line with other studies, including one from the Carbon Disclosure Project published this summer that showed how cloud computing can lead to $12.3 billion a year in energy savings by 2020.

Beyond that, the CSC study found a number of other benefits to the cloud:

  • Nearly all businesses boost improvements in IT performance after cloud adoption: 93 percent saw at least one area of improvement in their IT department since adopting cloud; 52 percent reported increased data center efficiency and utilization, and 47 percent of companies said they witnessed lower operating costs after cloud adoption.
  • The majority of organizations save money with cloud, although the savings are often small: 35 percent of U.S. organizations reported savings of $20,000 or less, while 23 percent of U.S. organizations and 45 percent of U.S. small businesses (fewer than 50 employees) reported no savings; Brazilian organizations reaped the most cost benefit with 92 percent saving money.

Many other studies and companies have also documented the green and business benefits of shifting to cloud services. Google earlier this year raised the curtain on its cloud operations, showing why large-scale computing is inherently more efficient.

Forrester’s Chris Mines, writing for this summer, laid out four reasons why cloud computing is green as well as efficient, and Verdantix’s David Metcalfe, in his regular column for GreenBiz, offered up five rules to make the right cloud computing decisions.

More details about the cloud usage survey can be found at the CSC website.


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