IDC: AWS Customers Get 64 Percent Lower TCO

Research into the business value of using Amazon Web Services (AWS) has found that users on average will get a 560 percent five-year return on income, experience a 64 percent lower total cost ownership, and benefit from almost 70 percent more efficient IT staff operations.

This is according to research house IDC, which interviewed ten organisations for the Amazon sponsored whitepaper who, from a cross section of industries, are using Amazon Web Services as their cloud platform.

Business transformation

“On the whole, interviews with AWS customers demonstrated that they are not only leveraging Amazon cloud services to build and support applications more efficiently and cost effectively, but that running these applications in the AWS environment is enabling them to better serve their customers and drive their business transformation initiatives,” said IDC.

That much is clear, moving to the cloud will nowadays, in most cases, come with extreme business value benefits.

Unfortunately, the whitepaper fails to compare or contrast AWS customers’ benefits with those of users of other cloud platforms such as Microsoft Azure.

Nevertheless, IDC does come up with some intriguing finds with the whitepaper. For example, the benefits of using AWS against using an on-premise or hosted service are massive, according to the whitepaper.

“Surveyed organisations are managing applications in their AWS environments an average of 68.1% more efficiently compared with maintaining the same environment on-premise or in a hosted environment.

“They are achieving this even as they expand their workload environments with AWS, which provides them with the opportunity to redeploy staff resources to activities focused on enabling their businesses. Without AWS, more IT staff time would be required to “keep the lights on”, whereas these AWS customers can devote saved IT staff time to work on new projects, innovate, and enable their businesses.”

Furthermore, IDC is claiming that those surveyed, on average, would be spending 63.4 percent more on average every year to use on-premise data centre resources to run their application in the cloud.

One Amazon customer explained: “We looked at doing this internally and it would have cost a lot more than AWS, not even close – double or 1.5 times as much as AWS.”

Moving to AWS, the whitepaper found, also enabled customers to retire on average 372 servers, avoiding costs for scaling up the size of their data centre in the future, too.

Take our cloud quiz here!