The Lighter Side Of The Cloud – Cloud Holiday
The Lighter Side Of The Cloud – Piggybacking
The Lighter Side Of The Cloud – K.I.S.S
The Lighter Side Of The Cloud – Stuff
The Lighter Side Of The Cloud – Birds & The Bees

Calculating the ROI on Cloud: The Cost of Cloud – Part 3

Continued from Part 2

The Cost of Cloud

Clearly, there is great return potential associated with Cloud-based model. However, transition to Cloud-based model from an on-premise model is not without cost.

  • Direct Ongoing Cloud Costs

While the cost savings associated with a cloud-based model over an on-premises model are clearly substantial, there are two areas where an IT organization will face new costs associated with Cloud: those associated with the Cloud platform (~5%) and those associated with Cloud databases (~4%). However, these are operational expenditures – pay-as-you-go costs, that depend entirely on the business’ demand.

  • On-time Migration Costs

In addition to direct costs associated with transitioning to the cloud, migration to the cloud represents a considerable change to the way IT operates in both infrastructure and staff. In the short run, enterprises may experience disruption to business continuity and costs related to change management, integration, and incompatibilities among solutions.

  • Risk

Risk management can be a source of savings through Cloud; automation and standardization can reduce human error and additional layers of security can be more easily added in the Cloud. However there are risks associated with Cloud that an enterprise doesn’t face with the on-premises model.

  • Incompatibility/Uptime issues

  • Security/Compliance

  • Quantifying Risk

Conclusion

Organizations have traditionally seen the potential return from cloud investment as generated by cost savings: labor efficiencies, cost avoidance on the software side, and the savings that come from turning capital expenditures on hosting and hardware into pay-as-you-go operational expenditures. However, benefits from productivity improvements and revenue transformation opportunities are why the cloud is viewed as truly transformational.

In order for IT executives to ensure that they achieve ROI of Cloud in their organization, a thorough assessment of internal applications suitability for the cloud must be done. In addition, it is essential that the IT department works with the business side closely to determine what potential revenue opportunities are possible from moving to the cloud. It is only then that the true long term benefit of cloud can be realized.

Article By Shreekanth Joshi

Associate Vice President, Practice Head for SaaS and Cloud /Persistent Systems 

Follow Us!

CloudTweaks

Established in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the excellent CloudTweaks articles are provided by our own paid writers, with a small percentage provided by guest authors from around the globe, including CEOs, CIOs, Technology bloggers and Cloud enthusiasts. Our goal is to continue to build a growing community offering the best in-depth articles, interviews, event listings, whitepapers, infographics and much more...
Follow Us!

Sorry, comments are closed for this post.

Recent

IOT, Intelligent Sensors, And The Change That Is Coming…

IOT, Intelligent Sensors, And The Change That Is Coming…

Intelligent Sensors And The Future What is or isn’t connected: In the end, that is the internet of things. They, the things, represent stuff that has been around for the past 30 years. It was only recently that we have developed a way to consistently connect those devices. Despite the increasing awareness of IoT, it…

Cloud Vendor Benchmark 2015: Price-Performance Comparison

Cloud Vendor Benchmark 2015: Price-Performance Comparison

Cloud Vendor Benchmark 2015: 15 Top IaaS Providers Cloud Spectator has released their Cloud Vendor Benchmark 2015 Part 2: Price-Performance Comparison Among 15 Top IaaS Providers today, cited as the industry’s most comprehensive study. Exposing the influence that performance can have on the overall value of the IaaS environment, this report is aimed at helping…

Finland and The Future of The Internet

Finland and The Future of The Internet

Finlands Internet Future In so many ways, the nations of Northern Europe seem to be a few steps ahead of the rest of the world – countries like Norway, Sweden, Denmark, and Finland are frequently singled out for praise in areas as diverse as education, technology, and sheer happiness (despite the grey skies and bitter…

Popular Archives

Cloud Infographic – The Future Of Big Data

Cloud Infographic – The Future Of Big Data

The Future Of Big Data Big Data is BIG business and will continue to be one of the more predominant areas of focus in the coming years from small startups to large scale corporations. We’ve already covered on CloudTweaks how Big Data can be utilized in a number of interesting ways from preventing world hunger to helping teams win…

The Global Rise of Cloud Computing

The Global Rise of Cloud Computing

The Global Rise of Cloud Computing Despite the rapid growth of cloud computing, the cloud still commands a small portion of overall enterprise IT spending. Estimates I’ve seen put the percentage between 5% and 10% of the slightly more than $2 trillion (not including telco) spent worldwide in 2014 on enterprise IT. Yet growth projections…

Sponsors

The Many Hats Of Today’s IT Managers

The Many Hats Of Today’s IT Managers

The Many Hats of IT Managers In years past, the IT department of most large organizations was much like a version of Middle Earth: a mysterious nether world where people who seemed infinitely smarter than the rest of us bustled around, speaking and typing languages that appeared indecipherable, yet, which made our world work. They…

Selling Your Business To Your Employees

Selling Your Business To Your Employees

Mobility For Your Employees It may seem a radical notion, the idea of selling your business to the people who work for you, but this is the era in which we now work. Employees of all levels are all incredibly aware of their options when it comes to mobility and employability. This doesn’t mean that…

Established in 2009

CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

CloudTweaks Comic Library

Advertising