Posted by aionol | 07 JAN 2018

The Difficulties of Measuring ROI of Cloud-based Agility

Let’s think back to the good old days when we could still explain the benefits of cloud migration in terms of capex vs opex. Obviously, there is still value in looking at cost savings when considering moving your business to the cloud. In fact, most businesses come to the cloud for the savings in operational […]

Let’s think back to the good old days when we could still explain the benefits of cloud migration in terms of capex vs opex. Obviously, there is still value in looking at cost savings when considering moving your business to the cloud. In fact, most businesses come to the cloud for the savings in operational expenses. But they stay for the agility.

The REAL benefit is Agility

Agility is the REAL benefit of cloud computing. Over the long term, it is agility that really brings value to your business. And after of cloud migration, businesses start to realize this. But there is one major issue when it comes to cloud-based agility.

The Issue of Measurement

In the past, the value of cloud computing was measured in terms of cost savings. That’s relatively easy to do. Compare the cost of purchased hard and software related to building data centers with the fees paid to cloud providers. Add the migration costs and related expenses, and you have your traditional capex-versus-opex measure. Unfortunately, it’s not that easy when it comes to measuring the value of agility in the cloud.

The Difficulties of Measuring ROI of Cloud-based Agility

The Difficulties of Measuring ROI of Cloud-based Agility

Individualizes Metrics

Measuring cloud-based agility requires individualized metrics. That means you need to develop tracking metrics that make sense for your business and industry. ROI measurements are therefore specific to internal business cases. So what do these metrics might look like?

The Example of Time To Market

Cloud computing can significantly reduce the time that is required to introduce a new product into the market. Procurement cycles of hardware and software are almost eliminated, so that businesses can very quickly develop automated systems that push products or services out to the market. But does the improvement in time to market has the same value for every business? No. In industries such as high tech, the time saving is a crucial factor for competitiveness. When it comes to manufacturing, it might not be on top of the priority list.

You need to determine the value that agility has for your business. Iono Inc can help you find out how.

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