"good ideas don't get to far unless they have the sponsorship and buy in of the people paying the bills."
I think people who are paying the bills fall into two categories; the first being people who are trying to save money, one form of ROI and the other, people who are trying to achieve a competitive advantage from being able to use a new product, which makes it easier for them to sell more, or provide their service more efficiently, which is a slightly different form of ROI, a competitive ROI.
The question that is probably still evolving is who will get the most advantage from cloud initiatives?
As a quick example things like ASP and managed services have been around for decades. I recently read Sam Wyly's 1000 Dollars and an Idea and his company UCC was selling time on big computers back in the 60's but it wasn't until he went into software that he made his real money.
I think this is also true for recent examples like salesforce.com they went into a market where you could already by CRM software and there were plenty of ways to get that software hosted where you didn't have to worry about it. I think what they did was make it easy for people to get the advantages of real CRM at a price that they could afford. In that example it wasn't so much that people where saving money on their current hosting or current systems it was that they were able to buy something that they probably didn't have at all prior to that time, essentially meaning that they were now more competitive as a company.
The question in the cloud and maybe an influencer as to how you create your outline will most likely come down to who the buyer ends up becoming, is it in fact a technologist who says I can make incremental savings in how I deal with equipment or services I already have or will it be the person who obtains a whole new service that they didn't previously have in which case they achieve a major step in their competitive position. The greatest value has always been in obtaining better competitive position and people will pay much more for that.
I don't know if that helps but maybe it influences the thought process.
Ed Loessi
On Sat, Dec 6, 2008 at 2:40 AM, John Ravella <johnr@ahorizons.com> wrote:
If your customer/company isn't familiar with "cloud" computing and the
basic pros/cons, no amount of ROI arguments will get a company to
commit their precious dat to the cloud. I suggest starting with the
basics. After that the best arguments come when the company out grows
the current hardware and needs to shell out big $$$ to upgrade
hardware and software--that (theoretically) doesn't happen with cloud
computing.
John
On Dec 3, 2008, at 5:59 PM, Bob Slook wrote:
>
> I've been tinkering in the cloud for a while now and have been
> amazed as
> what' going on out there and all the innovation. I think it's
> great. The
> problem is a lot of good ideas don't get to far unless they have the
> sponsorship and buy in of the people paying the bills.
> I'm trying to build a value proposition for expanding a virtualization
> strategy and leveraging Cloud Computing. I'm trying to capture
> some real
> facts for a business plan that would outline a real strategy and
> show then
> some positive ROI. You know how it is. Nothing gets done without
> showing
> the ROI. All the benefits of Cloud Computing seem very fuzzy since
> it's
> so new and still developing. I'd like to capture the groups
> thoughts in
> the following area or at least places where I could track down some
> tangible points. I promise to post a summary when I'm done.
>
>
> Savings Side
>
>
> Tangible
>
>
> On premise Virtualization
>
>
> Off premise Cloud Computing
>
>
> Reduced electric and cooling costs
>
>
> Reduced capital costs
>
>
> Reduced administration and support
>
>
> In tangible
>
>
> Benefits of speedier provisioning
>
>
> Costs Side
>
>
> Initial set-up and conversion costs
>
>
> Monitoring
>
>
> Monthly repeating costs
>
>
>
>
>
> Bob
>
> >
--
Ed Loessi
CEO
Faulkner Technologies
Email: ed.loessi@faulknertechnologies.com
Contact Details: Boston, MA, U.S.A.
Office Phone: 1-857-241-3827
Fax: 1-877-724-8653
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