Tuesday, December 23, 2008

[ Cloud Computing ] Re: Cloud Computing ROI model

Thanks, Sankar. All your points above are valid, but not relevant to
what I'm looking for. I was hoping that someone had worked on a
calculation they can share that analyzes the cost benefits from
switching to a public cloud from an on-premise data center or a
dedicated hosting environment.

You are raising some of the challenges in migrating to a cloud, which
should of course be taken into account in the little exercise I am
trying to work on, particularly if they add to the costs of moving to
a cloud (management, monitoring, security, etc.) and thus reduce the
ROI of such a move.

On Dec 23, 7:54 pm, Sankar Nagarajan <nagarajansan...@gmail.com>
wrote:
> Geva,
>
> All your points holds good.
>
> However, for a knowledgeable customer, there are more selling points
> or differentiators (in terms of your services) needed
>
> * Reliability is seen as an issue on the cloud - How does one address
> this?
>
> * Protection/Security is seen as a major issue on the cloud :- How
> does one address this?
>
> * Cloud deployment for moderate to complex applications is not easy -
> (Custom App-stack/Machine Images) - How does one address this?
>
> * Monitoring ,Management and maintenance of deployed apps are not so
> easy for every app- How is this addressed?
>
> * There are various clouds / cost models , If one can make a
> comparison, consult and be able to help a client to find the best
> choice for their budget and service them
>    this would be add punch to the Value -Proposition?
>
> In essence, it is granted that clouds come with their inherent
> benefits and value , However to sell this model effectively with an
> ROI model, from a solution provider or SaaS viewpoint, a number of
> points (i have mentioned a few) have to be considered and factored in
> the value proposition to a end user,dependening on one's capabilities.
>
> Sankar Nagarajanhttp://www.linkedin.com/in/nsk007
>
> On Dec 24, 12:54 am, Geva Perry <gevape...@gmail.com> wrote:
>
> > 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 Perryhttp://gevaperry.typepad.com

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