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Study: Cloud benefits stand hand-in-hand with hype

The cloud is constantly gaining momentum in the private sector, as companies of all sizes embrace the technology to enhance cost savings, boost performance and potentially gain a competitive advantage over rival firms. This was highlighted in a new report by Lero, Ireland's National Software Engineering Research Center.

The study, which was carried out by Lero researchers at the National University of Ireland at Galway, revealed that companies leveraging cloud computing can experience enhanced collaboration and innovation, enabling them to be more efficient than organizations neglecting the cloud.

In addition to boosting productivity, the study found the ability to reduce expenses by migrating from capital to operational expenditure was among the primary reasons so many businesses are embracing cloud computing. This is especially important today, as companies of all sizes continue to struggle through the ongoing macroeconomic crisis.

However, researchers revealed that a significant portion of the private sector think of the cloud in simplistic terms that may inhibit their ability to adapt to the technology.

"We found too many organizations were making the decision based on an initial 'go' or 'no go' basis and were failing to realize that various people and parts of that organization were making different decisions - often with very negative consequences," said Kieran Conboy at the Cairnes School of Business in NUI Galway, according to TechCentral.

Considerations regarding the cloud computing migration
A separate report by Infosys echoed the importance of looking deep into cloud hosting services before making the transition, as having a simple "adopt" or "neglect" mindset can lead to more problems down the line. Decision-makers need to consider how their organization will use the cloud and whether making the initial transition will be worth it in the long run. If a company's operations are efficient without the cloud, the move may not be as imminent as it would for other firms.

Executives also need to consider if their IT department has effective data security tools to keep mission-critical resources safe in the cloud, Infosys noted.

Nevertheless, the cloud will likely be the future of the private sector, helping firms remain efficient in otherwise volatile business conditions.

"The tech sector has a history of hyping the next big thing," Conboy said, according to TechCentral. "In the case of the cloud, our study suggests that many of the claims stand up."

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