Business Agility and the True Economics of Cloud Computing
B u s i n e s s W H iTe PA P e R

Business Agility and the True Economics of Cloud Computing

Executive Summary
New groundbreaking global survey findings demonstrate the true value of cloud computing to the business. While it is understood in the industry that cloud computing provides clear cost benefits, CIOs are having difficulty getting a true fix on the business value that cloud might offer beyond cost reduction. These survey results reveal a direct link between cloud computing and business agility—how business outcomes are associated with agility, the role of IT for agile companies and the importance of cloud computing to business leaders.

value to the enterprise. It shows that the hype around cloud computing is maturing into facts about what cloud can really deliver to both IT and the business. Game-changing CIOs think business transformation first, then how technology enables it. They are the ones strategizing with their CEOs and other business leaders to look beyond simple cost calculations to the business agility that cloud computing can enable.

Defining Business Agility
Business agility is the ability of a business to adapt rapidly and cost-efficiently in response to changes in the business environment. According to McKinsey & Company, the leading global management consulting firm, the benefits of agility include faster revenue growth, greater and more lasting cost reduction, and more effective management of risks and reputational threats.

Rebalancing the IT Equation
What drives IT in your organization—cost or agility? In economics, it is a supply-and-demand equation. Within the IT organization, it is a cost-agility equation with most discussions today focused on cost controls rather than the greater potential benefit—business agility. We hear “How much capital and operational