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How Do You Prove Cloud ROI? IT Performance Systems Help

Michael Procopio

I saw a survey in an interesting article the other day by ZDNet blogger Joe McKendrick. McKendrick cites a new cloud survey for The Open Group. The survey indicated that many believe cloud will bring favorable ROI to IT shops, but they lack a mechanism to track results.

ROI is a purely financial calculation which is usually expressed as dollar amount or a percentage. The catch is many IT shops don’t know what a project or a service costs. If you don’t know how much you will invest to get to cloud and how much cost you will take out by doing it (return), ROI will stay illusive.

Cloud computing is predicted by many to be a fundamental shift in the way IT works. As more public cloud applications become available, which are nicely prices on a per user per month basis – IT management is going to need to have the same information and more.

Good or bad, the per user per month metric is not the only consideration your company has of you if it matches most of those surveyed. Agility, innovation, business alignment and more are being asked of IT management. All these are hard to measure now. Cloud adds more moving parts which rarely makes things easier.

What to do? Start now creating your own IT Performance system. How, starting thinking about all the KPIs (key performance indicators) you wish you had that can be derived from data that exists somewhere in the organization.
Here are some examples:

*  % of Service Performance Not Met
*  MTBF (mean time between failure)
*  MTTR (mean time to repair)
*  Time-To-Market of New IT Products or Services (from the time there is agreement we will do project zebra to the time IT says the zebra is ready for production)

The way you will prove ROI is seeing improvement in these (and other) measures after moving to cloud.

Hot Topics

The Latest

IT and line-of-business teams are increasingly aligned in their efforts to close the data gap and drive greater collaboration to alleviate IT bottlenecks and offload growing demands on IT teams, according to The 2025 Automation Benchmark Report: Insights from IT Leaders on Enterprise Automation & the Future of AI-Driven Businesses from Jitterbit ...

A large majority (86%) of data management and AI decision makers cite protecting data privacy as a top concern, with 76% of respondents citing ROI on data privacy and AI initiatives across their organization, according to a new Harris Poll from Collibra ...

According to Gartner, Inc. the following six trends will shape the future of cloud over the next four years, ultimately resulting in new ways of working that are digital in nature and transformative in impact ...

2020 was the equivalent of a wedding with a top-shelf open bar. As businesses scrambled to adjust to remote work, digital transformation accelerated at breakneck speed. New software categories emerged overnight. Tech stacks ballooned with all sorts of SaaS apps solving ALL the problems — often with little oversight or long-term integration planning, and yes frequently a lot of duplicated functionality ... But now the music's faded. The lights are on. Everyone from the CIO to the CFO is checking the bill. Welcome to the Great SaaS Hangover ...

Regardless of OpenShift being a scalable and flexible software, it can be a pain to monitor since complete visibility into the underlying operations is not guaranteed ... To effectively monitor an OpenShift environment, IT administrators should focus on these five key elements and their associated metrics ...

An overwhelming majority of IT leaders (95%) believe the upcoming wave of AI-powered digital transformation is set to be the most impactful and intensive seen thus far, according to The Science of Productivity: AI, Adoption, And Employee Experience, a new report from Nexthink ...

Overall outage frequency and the general level of reported severity continue to decline, according to the Outage Analysis 2025 from Uptime Institute. However, cyber security incidents are on the rise and often have severe, lasting impacts ...

In March, New Relic published the State of Observability for Media and Entertainment Report to share insights, data, and analysis into the adoption and business value of observability across the media and entertainment industry. Here are six key takeaways from the report ...

Regardless of their scale, business decisions often take time, effort, and a lot of back-and-forth discussion to reach any sort of actionable conclusion ... Any means of streamlining this process and getting from complex problems to optimal solutions more efficiently and reliably is key. How can organizations optimize their decision-making to save time and reduce excess effort from those involved? ...

As enterprises accelerate their cloud adoption strategies, CIOs are routinely exceeding their cloud budgets — a concern that's about to face additional pressure from an unexpected direction: uncertainty over semiconductor tariffs. The CIO Cloud Trends Survey & Report from Azul reveals the extent continued cloud investment despite cost overruns, and how organizations are attempting to bring spending under control ...

Image
Azul

How Do You Prove Cloud ROI? IT Performance Systems Help

Michael Procopio

I saw a survey in an interesting article the other day by ZDNet blogger Joe McKendrick. McKendrick cites a new cloud survey for The Open Group. The survey indicated that many believe cloud will bring favorable ROI to IT shops, but they lack a mechanism to track results.

ROI is a purely financial calculation which is usually expressed as dollar amount or a percentage. The catch is many IT shops don’t know what a project or a service costs. If you don’t know how much you will invest to get to cloud and how much cost you will take out by doing it (return), ROI will stay illusive.

Cloud computing is predicted by many to be a fundamental shift in the way IT works. As more public cloud applications become available, which are nicely prices on a per user per month basis – IT management is going to need to have the same information and more.

Good or bad, the per user per month metric is not the only consideration your company has of you if it matches most of those surveyed. Agility, innovation, business alignment and more are being asked of IT management. All these are hard to measure now. Cloud adds more moving parts which rarely makes things easier.

What to do? Start now creating your own IT Performance system. How, starting thinking about all the KPIs (key performance indicators) you wish you had that can be derived from data that exists somewhere in the organization.
Here are some examples:

*  % of Service Performance Not Met
*  MTBF (mean time between failure)
*  MTTR (mean time to repair)
*  Time-To-Market of New IT Products or Services (from the time there is agreement we will do project zebra to the time IT says the zebra is ready for production)

The way you will prove ROI is seeing improvement in these (and other) measures after moving to cloud.

Hot Topics

The Latest

IT and line-of-business teams are increasingly aligned in their efforts to close the data gap and drive greater collaboration to alleviate IT bottlenecks and offload growing demands on IT teams, according to The 2025 Automation Benchmark Report: Insights from IT Leaders on Enterprise Automation & the Future of AI-Driven Businesses from Jitterbit ...

A large majority (86%) of data management and AI decision makers cite protecting data privacy as a top concern, with 76% of respondents citing ROI on data privacy and AI initiatives across their organization, according to a new Harris Poll from Collibra ...

According to Gartner, Inc. the following six trends will shape the future of cloud over the next four years, ultimately resulting in new ways of working that are digital in nature and transformative in impact ...

2020 was the equivalent of a wedding with a top-shelf open bar. As businesses scrambled to adjust to remote work, digital transformation accelerated at breakneck speed. New software categories emerged overnight. Tech stacks ballooned with all sorts of SaaS apps solving ALL the problems — often with little oversight or long-term integration planning, and yes frequently a lot of duplicated functionality ... But now the music's faded. The lights are on. Everyone from the CIO to the CFO is checking the bill. Welcome to the Great SaaS Hangover ...

Regardless of OpenShift being a scalable and flexible software, it can be a pain to monitor since complete visibility into the underlying operations is not guaranteed ... To effectively monitor an OpenShift environment, IT administrators should focus on these five key elements and their associated metrics ...

An overwhelming majority of IT leaders (95%) believe the upcoming wave of AI-powered digital transformation is set to be the most impactful and intensive seen thus far, according to The Science of Productivity: AI, Adoption, And Employee Experience, a new report from Nexthink ...

Overall outage frequency and the general level of reported severity continue to decline, according to the Outage Analysis 2025 from Uptime Institute. However, cyber security incidents are on the rise and often have severe, lasting impacts ...

In March, New Relic published the State of Observability for Media and Entertainment Report to share insights, data, and analysis into the adoption and business value of observability across the media and entertainment industry. Here are six key takeaways from the report ...

Regardless of their scale, business decisions often take time, effort, and a lot of back-and-forth discussion to reach any sort of actionable conclusion ... Any means of streamlining this process and getting from complex problems to optimal solutions more efficiently and reliably is key. How can organizations optimize their decision-making to save time and reduce excess effort from those involved? ...

As enterprises accelerate their cloud adoption strategies, CIOs are routinely exceeding their cloud budgets — a concern that's about to face additional pressure from an unexpected direction: uncertainty over semiconductor tariffs. The CIO Cloud Trends Survey & Report from Azul reveals the extent continued cloud investment despite cost overruns, and how organizations are attempting to bring spending under control ...

Image
Azul