Customers Can Benefit From Covisint's "Pay as You Go" Model, Speed and Focus
According to the report, "the financial benefit of paying by the month rather than upfront is great when times are good, but especially important during a downturn ... the service provider pricing model of cloud computing is particularly valuable when economic uncertainty limits the capital and IT resources available to firms."
The 10-page report outlines the key benefits of cloud computing, including: 1--speed (accelerate a project rollout); 2--focus (outsource non- core competencies to a service provider) and 3--funding (pay as you go rather than spend upfront).
"To a CFO, IT capacity or an application purchased from a cloud-based service provider is an operating expense (opex) that can be scaled up to meet a rising business need--or turned off when the need evaporates," the report noted. "The same solution hosted in the corporate data center is a sunk cost that includes a capital expenditure (capex) that must be carried on the balance as an asset that loses value as it depreciates. That difference between capex and opex yields financial benefits that CFOs value."
"Forrester Research is one of the world's most respected analyst firms, and this report--calling Covisint, salesforce.com, Amazon Web Services and Thomson Reuters cloud computing pioneers--clearly identifies the economic business drivers that CFOs seek," said David McGuffie, President and COO of Covisint. "Covisint's cloud computing leadership has provided important business value for nearly a decade to the world's leading manufacturing companies, and, for the past four years, to healthcare communities and organizations in other industries."
Cloud computing, also known as "software as a service" (SaaS), gives organizations of all sizes the freedom, speed and agility they need to focus on their core competencies and customer needs, leaving the heavy IT lifting to service providers. Covisint also recently published a cloud computing white paper looking at the total cost of ownership (TCO) of the SaaS model. The paper, titled Collaborative Portal Decisions that Make "Cents"--Reducing Total Cost of Ownership by 50% or More With SaaS Solutions, highlights the case for when to consider cloud computing and is available at http://www.covisint.com/tcl.shtml.
Covisint's on-demand collaboration platform and cloud computing approach helps virtual communities securely access, use and share time sensitive information. Covisint solves business problems by streamlining and automating processes globally--connecting state and nationally based communities, organizations and systems in the healthcare, automotive and financial services industries, as well as the public sector. Learn more about Covisint at www.covisint.com.
Compuware Corporation makes IT rock around the world, helping CIOs optimize IT performance to achieve business goals. Compuware solutions accelerate the development, improve the quality and enhance the performance of critical business systems while enabling CIOs to align and govern the entire IT portfolio, increasing efficiency, cost control and employee productivity throughout the IT organization. Founded in 1973, Compuware serves the world's leading IT organizations, including 92 percent of the Fortune 50 companies. Learn more about Compuware at http://www.compuware.com.
Doug Anter, Communications Manager, Compuware Communications and Investor Relations/ Covisint Division, Email Contact, 313-227-0127
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