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A Case for Operating in the Cloud

By James C. Nolan

A 27.5% drop in revenue will get your attention. It did mine in April 2009 when I reviewed my firm's financial results for the first quarter of the year. I was shocked, and worried whether my practice could stay open. I knew some of my competitors had gone out of business and I was afraid I was next.

But, I didn't feel things were too bad and as I looked farther down the income statement I realized why.

  • Rent Expense: down 50%;
  • IT Costs: down 90%;
  • Outside Workers Cost: down 60%; and
  • Payroll Costs: down 40%.

I realized then that my movement to Microsoft's “cloud” enabled me to survive this downturn and will help me thrive in the upturn. Without it, I may not have stayed in business. There are two ideas I would like to emphasize with this article.

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