Buyers, Sellers Disagree About Value of Cloud Computing

By Gary Kim April 11, 2013

According to at least one study, enterprise buyers and sellers disagree on the value of cloud computing. Buyers say time of deployment is the top value, reduced cost of ownership only the fourth most important reason for using cloud computing services.

That won’t come as a surprise to observers of the enterprise information technology market. Enterprise buyers historically are not as obsessed with price, for example, as are small businesses.

Total lower cost of ownership is quite important for small business cloud users, a CompTIA study would suggest. That’s also logical. One important value of cloud-based apps, from a small business perspective, is the ability to use tools and applications that have historically been too expensive for the small business buyer.

On the other hand, some surveys show that, as with any new technology, even small business owners and managers have as a top concern that cloud computing has to work. Price of the solution doesn’t matter unless those sorts of questions are answered.

Sellers say reduced total cost of ownership is cloud computing’s top value. Granted, the differences are subtle. And as always, the way choices are presented can affect the results.

On a scale of one to five, with one being “not at all important” and five representing “very important” value, a score of three is the equivalent of an “better than average” score, where the “mean score” is 2.5.

So enterprise buyers tend to say TCO reduction is neither “very important” nor “totally unimportant.” The issue is what any observer thinks a score midway between “very” important and “totally unimportant” actually means.

TCO reduction might be deemed to be “somewhat” important by enterprise buyers, while sellers might be said to view TCO reduction as “more than somewhat important.”

In the small business market, it’s probably always true that price matters, and that total cost of ownership might not even be a factor. Small business owners tend to evaluate solutions based on out-of-pocket recurring costs, not total cost of ownership.




Edited by Braden Becker

Contributing Editor

SHARE THIS ARTICLE
Related Articles

Consumer Privacy in the Digital Era: Three Trends to Watch

By: Special Guest    1/18/2018

Digital advertising has exploded in recent years, with the latest eMarketer data forecasting $83 billion in revenue this year and continued growth on …

Read More

CES 2018: Terabit Fiber - Closer Than We Think

By: Doug Mohney    1/17/2018

One of the biggest challenges for 5G and last mile 10 Gig deployments is not raw data speeds, but middle mile and core networks. The wireless industry…

Read More

10 Benefits of Drone-Based Asset Inspections

By: Frank Segarra    1/15/2018

Although a new and emerging technology, (which is still evolving), in early 2018, most companies are not aware of the possible benefits they can achie…

Read More

VR Could Change Entertainment Forever

By: Special Guest    1/11/2018

VR could change everything from how we play video games to how we interact with our friends and family. VR has the power to change how we consume all …

Read More

Making Connections - The Value of Data Correlation

By: Special Guest    1/5/2018

The app economy is upon us, and businesses of all stripes are moving to address it. In this age of digital transformation, businesses rely on applicat…

Read More