Tuesday, December 23, 2008

[ Cloud Computing ] Re: Cloud Computing ROI model

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 Nagarajan
http://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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