However, if an investor had purchased stock in the 30 components of the Dow in 1990 that were all deploying ERP, that investor would have benefited from a 35% decline in General and Administrative costs as a percentage of revenues, a five-fold increase in revenues as automation enabled massive scale, and an almost eight-fold increase in market cap.
The approach that companies rely upon to operate their IT lacks the integration and automation needed to achieve the full economies of scale cloud computing can deliver.
Public cloud platforms achieve a lower cost basis by leveraging commodity infrastructure and economies of scale that come through multitenancy, automation, and standardization, he writes in a new post and report.