Cloud Economics

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What is Cloud Economics?

It is the business concept of focusing on those activities that differentiate your business in the market and relinquishing those activities which can be performed better, faster and cheaper by someone else. This concept uses agility in finance, labor and technology to achieve competitive advantage.  Cloud is not just utility computing or exclusively about technology.  Cloud is a strategic business decision that has profound impacts on company culture.  Avail specializes in strategic cloud economics engagements at no cost to clients.

What are the 3 pillars of Cloud?

Financial Agility
While lowering and containing costs is an important and expected outcome of cloud adoption, the key financial objectives are increasing company value, improving cash flow, and better alignment with business strategy. Cloud provides mechanisms to get to market faster, to acquire revenue with greater efficiency and to create opportunities for additional revenue sources. Cloud financial agility allows clients the freedom to convert expenses into contra-assets, to capture revenue before incurring costs, to avoid long-term contracts, and create more flexible and predictable spending at a more granular level.
Labor Agility
Dealing with the high cost of IT labor inefficiencies is one of the biggest challenges that companies face. The traditional model of in-house IT staffing and training to provide manual execution of infrastructure operations pales in comparison to the highly automated, expertly-staffed support organizations of service providers who operate with great economies of scale. Cloud offers an unprecedented opportunity for companies to obtain expert labor resources on-demand and shift costs and risk to providers specializing in technology operations and services.
Technological Agility
Applications support business functions and application code is digital business infrastructure. Adopting a true cloud model means responding to shifting market pressures to maintain competitive advantage while lowering risk and maintaining security and compliance. This means that technology responds to your business, rather than holding it hostage. The result is an environment that is scalable, reliable, flexible and high-performing, all fully supported and on-demand.