True cloud value goes beyond basic ROI

Grazed from TechTarget. Author: David Linthicum.

Those charged with calculating the true value of cloud computing often refer to the old CapEx versus OpEx model. If we adopt public cloud and avoid purchasing hardware and software, that will save use money, right? It’s not that simple. So, what’s an IT leader to do to establish cloud value for your organization? There are no rules or solid models that you should use every time. As always, it’s a matter of understanding your business and the impact that any new technology can have upon it. Cloud computing is no different.

The old way of defining the value of cloud computing through cost efficiencies and the ability to avoid capital expenses is falling out of favor. The reasoning becomes more apparent as we gather data points about the value of a public cloud computing model. Our old way of defining cloud value gives no consideration to several key issues:..

• Existing investments made in IT infrastructure, including hardware, software and data center space
• The need to change staff and add skill sets
• The value of agility and time-to-market, as applied to the business in the next 24 months
• The new costs of improving security and governance…

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