The ROI of Cloud Computing – Some Key Metrics

Posted on 05. May, 2010 by in Cloud Computing

K Jackson had an interesting post recently on a Cloud Computing research report. The Open Group has published a white paper on how to build and measure cloud computing return on investment (ROI). Produced by the Cloud Business Artifacts (CBA) project of The Open Group Cloud Computing Work Group, the document:

  • Introduces the main factors affecting ROI from Cloud Computing, and compares the business development of Cloud Computing with that of other innovative technologie;
  • Describes the main approaches to building ROI by taking advantage of the benefits that Cloud Computing provide; and
  • Describes approaches to measuring this ROI, absolutely and in comparison with traditional approaches to IT, by giving an overview of Cloud Key Performance Indicators (KPIs) and metrics

In presenting their model, business metrics were used to translate indicators of cloud computing capacity-utilization curves into direct and indirect business benefits. The metrics used include a number of measures, of which I’ve included a few below:

The entire white paper and relevant documents can be found online here. This is an excellent resource for executives and managers to consider when evaluating cloud technology investment.

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One Response to “The ROI of Cloud Computing – Some Key Metrics”

  1. we are cloud 20 August 2010 at 4:38 am #

    Thanks for this post. The compelling business case for the cloud is realized by many IT professionals, but determining the return on investment of a technology such as cloud computing can prove to be difficult. Have you encountered the ITX (IT Cloud Transformation) ROI Calculator? It’s a free online service which will enable you to quickly estimate how much you stand to save in the cloud, versus on-premise. The program takes into account software applications, servers, data centers and back office functions and determines which would be cheaper with Web-based software applications and how long it would take to achieve ROI. For more info see this blog post http://bit.ly/bFsy7X


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