Tuesday, December 23, 2008

[ Cloud Computing ] Cloud Computing ROI model

Hello all,

Has anyone developed an ROI model for cloud computing (specifically,
public Infrastructure-as-a-Service a-la AWS)?

I'm trying to demonstrate to a few companies both the hard and "soft"
cost-savings of migrating to a public cloud environment. I'm
attempting to encompass as many aspects as possible. Including:

-- Costs savings for servers, storage, networking, software licenses,
power & cooling, real estate, system administration labor -- mainly
focusing on the possibility to eliminate over-provisioning and scale
on-demand with a pay-per-use pricing model
-- Costs savings due to decreased provisioning time
-- Shortening of application lifecycle and decreased time-to-market of
new products and services
-- Increased reliability (DR, etc.) at lower costs
-- Increased performance

Of course, the model also needs to take into account various
"switching costs".

If anyone has any concrete thoughts on the matter, or perhaps just
links to quantitative case studies, it would be greatly appreciated.

Geva Perry
http://gevaperry.typepad.com

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