--- title: "Could Going All in on the Cloud Help You Save Money?" id: "21992" type: "post" slug: "could-going-all-in-on-the-cloud-help-you-save-money" published_at: "2014-03-06T20:47:13+00:00" modified_at: "2026-11-09T18:24:00+00:00" url: "https://associationsnow.com/2014/03/06/could-going-all-in-on-the-cloud-help-you-save-money/" markdown_url: "https://associationsnow.com/2014/03/06/could-going-all-in-on-the-cloud-help-you-save-money.md" excerpt: "That’s what a recent study suggests. A new Computer Economics report states that organizations that move to software as a service platforms end up being more efficient when spending on IT-related expenses—and that led to more money for new projects." taxonomy_category: - "Organizational Strategy" taxonomy_post_tag: - "AssociationsNow" - "cloud computing" - "cost savings" - "exit strategy" - "Technology" taxonomy_content_format: - "Article" taxonomy_role: - "C-Level" - "Director" - "Executive Team" - "VP" taxonomy_persona: - "Executive Leadership" --- [Home](https://associationsnow.com/) » [Articles](https://associationsnow.com/format/article/) » Could Going All in on the Cloud Help You Save Money? The benefits of cloud computing aren’t limited to ditching the in-house server rack. > The reason I am confident that cloud saves money is that the results are consistent. That’s according to [a new report from the IT research firm Computer Economics (opens in a new tab)](http://www.computereconomics.com/article.cfm?id=1932) that bucks conventional wisdom on information technology issues. Traditionally, the belief has been that, while hosting a server in-house has a high upfront cost, it saves more money than other methods in the long run because the cost is fixed and carried over time. (In comparison, cloud services, the thinking goes, cost less up front but more over time because fees are recurring.) Instead, the study explains, cost savings with cloud computing come in other forms, including lower operational costs due to less need for IT staff, as well as reduced data center spending. All in all, the report finds, organizations that rely on cloud-computing-based software-as-a-service (SaaS) platforms end up saving 15 percent or more, on average, compared to the research firm’s benchmark data. The results surprised Computer Economics President Frank Scavo. “When we first started this research I expected the answer was going to be that companies that went to cloud computing spent about the same amount on IT as those on-premises but spend it in smarter or better ways,” [he told Network World (opens in a new tab)](http://www.networkworld.com/news/2014/022014-study-companies-that-go-all-in-278947.html?hpg1=bn) . Instead, he found that companies ended up spending on software more nimbly, with savings coming later as “on-premises infrastructure is significantly reduced or eliminated.” While the study sample was small, covering just seven companies with between $50 million and $550 million in revenue, [Scavo told Diginomica (opens in a new tab)](http://diginomica.com/2014/02/13/exclusive-computer-economics-study-cloud-saves/) that the results were fairly consistent among the companies. “We hope to get more respondents in the coming months, but I do not believe the conclusions of the report will change,” he said. “The reason I am confident that cloud saves money is that the results are consistent.” On top of the cost findings, the results of the Computer Economics study suggest that much of the money saved did not go toward upkeep but to new projects—a finding consistent with [another recent study from IBM (opens in a new tab)](http://www.cioinsight.com/it-strategy/enterprise-apps/slideshows/how-saas-pacesetters-are-gaining-an-advantage.html/) . That study, “Champions of Software as a Service: How SaaS Is Fueling Powerful Competitive Advantage,” found that two-thirds of SaaS pacesetters were seeing increased innovation, and 71 percent reported a shortened time to market for products and services. The Computer Economics study, “[The Economic and Strategic Benefits of Cloud Computing (opens in a new tab)](https://www.computereconomics.com/custom.cfm?name=postPaymentGateway.cfm&id=1931) ,” is available for purchase on the firm’s website. (Getty Images News/Thinkstock) [Ernie Smith](https://associationsnow.com/author/ernie-smith/) Ernie Smith is a former senior editor for Associations Now. [More articles by this author](https://associationsnow.com/author/ernie-smith/) Tags: [#cloud computing](https://associationsnow.com/tag/cloud-computing/) [#cost savings](https://associationsnow.com/tag/cost-savings/) [#exit strategy](https://associationsnow.com/tag/exit-strategy/) [#Technology](https://associationsnow.com/tag/technology/) **Stay Informed** [Subscribe to our free newsletter](https://associationsnow.com/newsletter/) , *Associations Now Daily News*, to find out what’s happening in the association world every business day. ## You Might Like - [PodcastAssociations Now Presents: Beyond the Tech Stack: How AI Is Changing the Association PlaybookOctober 29, 2026](https://associationsnow.com/2026/10/29/associations-now-presents-beyond-the-tech-stack-how-ai-is-changing-the-association-playbook/) - [TemplateMembers onlyLegal Center Membership GuideJune 15, 2018](https://associationsnow.com/2018/06/15/legal-center-membership-guide/) - [VideoChallenge Legacy Mindsets at MMC+TechApril 17, 2026](https://associationsnow.com/2026/04/17/challenge-legacy-mindsets-at-mmctech/) - [Video2026 Summit Awards DinnerOctober 2, 2026](https://associationsnow.com/2026/10/02/2026-summit-awards-dinner/) ## Comments **Comments are for ASAE members.** [Learn more about comments on this site.](https://associationsnow.com/comments/) [Log in](https://associationsnow.com/login?redirect_to=https%3A%2F%2Fassociationsnow.com%2F2014%2F03%2F06%2Fcould-going-all-in-on-the-cloud-help-you-save-money%2F%23comments) to your member account or [join ASAE](https://my.asaecenter.org/select-a-membership-type/) !