Document #US43535718 © 2018 IDC. www.idc.com | Page 1
IDC White Paper | Fostering Business and Organizational Transformation to Generate Business Value with Amazon Web Services
EXECUTIVE SUMMARY
As cloud technology has matured, adoption rates have accelerated by demands from business
to deliver transformational solutions faster and stave off unexpected competition. IDC has
observed the migration to cloud technology resulting in significant benefits to the bottom line
not just from cost savings but the ability to continuously deliver innovative solutions using
capabilities like machine learning and Internet of Things (IoT).
IDC interviewed 27 organizations around the world running various enterprise workloads on
Amazon Web Services (AWS) to understand the impact of AWS on their information technology
(IT) and business operations. These interviews revealed that study participants are leveraging
AWS to not only lower the cost of providing IT services but change how they deliver IT
services and help them transform their business operations to better compete and address
market demand. IDC's analysis shows that these AWS customers are achieving strong value
at an average of $20.97 million per year per organization over five years. The benefits were
achieved by:
• Creating more cost-effective IT environments by optimizing compute, storage, and
database costs or moving away from running own IT infrastructures (IDC calculates that
surveyed organizations will spend 31% less on AWS fees than running a comparable
infrastructure.)
• Shifting IT staff focus to differentiated work and strategic business initiatives, including
substantial gains in application developer productivity (IDC projects that IT infrastructure
teams will be on average 62% more efficient and application developers will be 25% more
productive with AWS.)
Fostering Business and
Organizational Transformation
to Generate Business Value with
Amazon Web Services
Sponsored by:
Amazon
Authors:
Larry Carvalho
Matthew Marden
February 2018
Business Value
Highlights
51%
lower cost of operations
62%
more efficient IT
infrastructure staff
94%
less unplanned downtime
25%
higher developer productivity
Almost 3X
more new features delivered
$36.5 million
per year of additional revenue
6 months
to payback
637%
five-year ROI