Cloud Computing and Virtualization driving business innovation

The need to do more with less fuels the majority of travelers on the High Tech Highway to look for innovative solutions. But what’s driving business innovation? We take a look at how revenue from cost savings and operational efficiency achieved from cloud solutions and virtual environments are enabling businesses to focus on strategy and innovation.

Cloud Computing Driving Business Innovation

A recent survey from Rackspace shows that cloud computing has reduced the total IT costs for a whopping 88 percent of cloud users, while 56 percent say that using cloud has helped them increase profits.

Of the companies who confirmed cost savings from cloud solutions, 62 percent said they are investing those savings back into their businesses to boost headcount and wages as well as drive innovation. Additionally, 49 percent of organizations said cloud computing has empowered them to grow their businesses. More than half of survey participants (60 percent) also noted that cloud solutions have reduced the need for their IT team to maintain infrastructure, allowing them to focus on their business, particularly in the areas of strategy and innovation.

Getting the Most out of Storage Virtualization

In a recent Information Week article, author and industry analyst Mark Peters discusses the often overlooked need for storage virtualization. According to Peters, while many organizations are capitalizing on the benefits of server virtualization by consolidating multiple application workloads on fewer hardware platforms, the aggregation of server workloads has put a significant amount of stress on both networking and storage infrastructures. As a result of this stress and adoption lag, “storage has become an unwanted poster child for inefficiency, driving up acquisition costs, consuming data center floor space and energy and increasing management time.”

By virtualizing storage pools, Peters suggests that organizations will reap “low-hanging fruit” such as:

  • Reclamation of stranded storage capacity
  • Consolidated storage management
  • Advanced storage management features
  • More energy-efficient operations
  • Non-disruptive data migration
  • Reduced capital expense and total cost of ownership for storage

According to Peters, “users that do not enthusiastically embrace storage virtualization are essentially wasting money, while at the same time missing out on operational improvements that can only be gained in fully virtualized environments”.

On-Site Virtualization Deemed ‘More Secure’ Than Cloud

According to a recent survey of more than 3,000 IT professionals in the U.S., a staggering 90 percent of midsize organizations responded that it was important or very important to keep applications and data within their company-owned infrastructure rather than entrusting it to a cloud provider. Furthermore, survey results show that the business applications deemed “core” to the business operations are the least likely to be considered for migration into a cloud environment.

Survey results show that security remains a key concern for midsize organizations when it comes to how and where their company’s data and infrastructure is managed. Nearly all survey participants confirmed that they believe on-premise infrastructure to be most secure.

The research also revealed that when considering deploying a virtualization initiative, the top factor cited by respondents was total cost, followed by complexity of the solutions and length of time to deploy the initiative.

Click here to view an infographic of the collective insights of the survey results.

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