Is Cloud ROI the Right Performance Yardstick?

cloud computing india

Companies today are more concerned about measuring their return on investments (ROI) for the outlays incurred on shifting to the cloud infrastructure.

cloud computing india
cloud computing india

A recent study conducted by the Nucleus Research revealed that the cloud technology is currently one of the fastest deployment models as it lowers upfront costs incurred by the organizations while moving their IT infrastructure to the cloud. The report further suggested that organizations, on an average, achieve 1.7 times better ROI when compared with in-house deployments models.

At present, businesses incur nearly 40% less expenditure on consultation fees, which costs them approximately 25% less outlay on the application support. Most of the application changes are often carried out by an organization’s business analysts and developers. Cloud vendors mainly perform traditional application support like system maintenance and maximizing network uptime.

One of the major benefits of using cloud ROI as a performance barometer is that the companies can measure and improve their operational costs over time. Let us take a quick glance at how organizations can achieve this:

A business can use return on investments for measuring monetary returns on its offerings (products and services). However, the soft side of using ROI as a yardstick is often ignored or underplayed. Businesses of all shapes and sizes can measure the amount of money they have spent on the cloud projects at different intervals of time in the form of net savings and costs. As a result, they can:

    •Adapt and expand the usage of cloud applications over time without incurring additional expenditure
    •Vendors can add more users over time after receiving the total returns on the investments. In this way they can identify more opportunities to achieve better value
    •Companies can achieve greater productivity by upgrading to integrated cloud analytics, improved workflows, as well as intuitive user interface
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Hence by using cloud ROI as a performance and productivity calculator, companies can optimize their total cost of ownership (TCO) while improving their capacity utilization and mitigating compliance risks.