We believe that all companies should evaluate cloud computing/cloud applications when planning to implement software applications, but specifically companies that historically have demonstrated a good Return on Invested Capital (ROIC). Companies that know how to double their capital investment every 4–5 years need to give cloud computing serious consideration.
The reason – businesses do not need to use their hard earned capital to purchase hardware and software. Instead of using capital to purchase hardware and software, companies can re-invest that money back into their business.
When growing companies implement on-premise applications, they design infrastructure to support projected future growth forcing businesses to purchase significantly more than they currently need. Cloud computing gives companies the flexibility to purchase only what they need, when they need it, for as long as they need it.
Let’s get back to the financial benefits of cloud computing versus on-premise solutions. Consider the following example which illustrates the financial benefit for a company that is going to implement a CRM solution for their sales and marketing organization. Let’s assume the following: (more…)



