recommended reading

Amazon cloud services provide enormous savings, company says


Amazon touted its Web services in a new self-commissioned study, which found organizations receive huge return on their investments in the company’s cloud computing service.

The report -- conducted by IDC, an industry analyst -- comes on the heels of a study by CSC, a major government IT vendor, that found a majority of organizations that transitioned to the cloud saved little or no money. The CSC study itself came after federal officials claimed the transition would save the government $5 billion annually.

Analysts at IDC said 11 small, medium and large organizations at various stages in their cloud transition to Amazon Web Services spent an average of 70 percent less than it would have cost them to deploy the same resources on their premises or in a hosted environment.

IDC reported organizations with AWS saved even more money over time. Those using the service for three years saved $3.50 for every $1 invested, while those using it for five years saved $8.40 per $1 invested, the study found. The latter figure marks a 626 percent return on investment, according to the report.

While a majority of the savings come from reduced costs in infrastructure and services, part of that return is a result of increased productivity, the analysts found, as end users had fewer service disruptions and therefore saw 72 percent reduction in downtime.

Computer clouds are essentially large banks of off-site computer servers that can pack data more tightly than traditional servers and nimbly move it as individual customers’ use surges and declines. Cloud customers can access their data on any device, a major selling point in consumer markets.

Amazon began delivering cloud services in 2006.

Threatwatch Alert

Thousands of cyber attacks occur each day

See the latest threats


Close [ x ] More from Nextgov

Thank you for subscribing to newsletters from
We think these reports might interest you:

  • Modernizing IT for Mission Success

    Surveying Federal and Defense Leaders on Priorities and Challenges at the Tactical Edge

  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

  • Effective Ransomware Response

    This whitepaper provides an overview and understanding of ransomware and how to successfully combat it.

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.


When you download a report, your information may be shared with the underwriters of that document.