How Do You Prove Cloud ROI? IT Performance Systems Help
June 27, 2011

Michael Procopio
Micro Focus

Share this

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.

Michael Procopio is Senior Product Marketing Manager at Micro Focus
Share this

The Latest

October 03, 2022

IT engineers and executives are responsible for system reliability and availability. The volume of data can make it hard to be proactive and fix issues quickly. With over a decade of experience in the field, I know the importance of IT operations analytics and how it can help identify incidents and enable agile responses ...

September 30, 2022

For businesses with vast and distributed computing infrastructures, one of the main objectives of IT and network operations is to locate the cause of a service condition that is having an impact. The more human resources are put into the task of gathering, processing, and finally visual monitoring the massive volumes of event and log data that serve as the main source of symptomatic indications for emerging crises, the closer the service is to the company's source of revenue ...

September 29, 2022

Our digital economy is intolerant of downtime. But consumers haven't just come to expect always-on digital apps and services. They also expect continuous innovation, new functionality and lightening fast response times. Organizations have taken note, investing heavily in teams and tools that supposedly increase uptime and free resources for innovation. But leaders have not realized this "throw money at the problem" approach to monitoring is burning through resources without much improvement in availability outcomes ...

September 28, 2022

Although 83% of businesses are concerned about a recession in 2023, B2B tech marketers can look forward to growth — 51% of organizations plan to increase IT budgets in 2023 vs. a narrow 6% that plan to reduce their spend, according to the 2023 State of IT report from Spiceworks Ziff Davis ...

September 27, 2022

Users have high expectations around applications — quick loading times, look and feel visually advanced, with feature-rich content, video streaming, and multimedia capabilities — all of these devour network bandwidth. With millions of users accessing applications and mobile apps from multiple devices, most companies today generate seemingly unmanageable volumes of data and traffic on their networks ...

September 26, 2022

In Italy, it is customary to treat wine as part of the meal ... Too often, testing is treated with the same reverence as the post-meal task of loading the dishwasher, when it should be treated like an elegant wine pairing ...

September 23, 2022

In order to properly sort through all monitoring noise and identify true problems, their causes, and to prioritize them for response by the IT team, they have created and built a revolutionary new system using a meta-cognitive model ...

September 22, 2022

As we shift further into a digital-first world, where having a reliable online experience becomes more essential, Site Reliability Engineers remain in-demand among organizations of all sizes ... This diverse set of skills and values can be difficult to interview for. In this blog, we'll get you started with some example questions and processes to find your ideal SRE ...

September 21, 2022

US government agencies are bringing more of their employees back into the office and implementing hybrid work schedules, but federal workers are worried that their agencies' IT architectures aren't built to handle the "new normal." They fear that the reactive, manual methods used by the current systems in dealing with user, IT architecture and application problems will degrade the user experience and negatively affect productivity. In fact, according to a recent survey, many federal employees are concerned that they won't work as effectively back in the office as they did at home ...

September 20, 2022

Users today expect a seamless, uninterrupted experience when interacting with their web and mobile apps. Their expectations have continued to grow in tandem with their appetite for new features and consistent updates. Mobile apps have responded by increasing their release cadence by up to 40%, releasing a new full version of their app every 4-5 days, as determined in this year's SmartBear State of Software Quality | Application Stability Index report ...