[ Cloud Computing ] Re: Cloud Computing Business Case Questions

I really like the thought of TVO. Thanks Srini.

I have been SaaS consultant and hate the tremendous amount of "Self ware" that comes with the traditional On Premise applications. With Platform as a Service, enterprises choose to pay only for the license fee and not for functionalities that they do not intend to use ever.

Another important benefit of the shared platform is the absolute zero cost for maintenance and upgrades.

Further, although minuscule today, realize the benefit of buying computers without Office applications and possibly even without an OS in the time to come.

-------------
Regards,
Ashish Ranjan
talkcrm.blogspot.com

On Thu, Dec 4, 2008 at 8:33 PM, Srini Chari <chari@vetrei.com> wrote:

Another way to look at ROI is looking at the Total Value of Ownership (TVO)
as opposed to TCO (Total Cost of Ownership). This will go beyond savings.

Some Benefits i.e. Value

1. Optional Value that provides access to computing capability as needed.
There are a lot of companies that can benefit from an on demand access to
capability through Cloud Computing. This gives them the ability to solve
problems that they couldn't solve before especially many HPC problems.

2. Enables better collaboration especially if cloud services are
standardized within the enterprise

3. Provides access to most current information even for mobile users

4. Probably more reliable with greater uptime

5. Possibly better IT governance


Other Cost Reductions - maybe in addition to your list

1. Lower Fixed Costs - IT Capial and Facilities. Costs become variable based
on usage
2. Probably lower training costs, employee turnover costs
3. Energy, etc...as per your list



Srini Chari, Ph.D., MBA
Chairman and CEO

Vetrei, Inc.                       Email: chari@vetrei.com
100 Woodcrest Lane      Phone: (203) 205-0705
Danbury, CT 06810         Fax: (800) 757-9037
                                          Cell: (914) 393-3858

http://www.vetrei.com/

-----Original Message-----
From: cloud-computing@googlegroups.com
[mailto:cloud-computing@googlegroups.com] On Behalf Of Bob Slook
Sent: Wednesday, December 03, 2008 8:59 PM
To: cloud-computing@googlegroups.com
Subject: [ Cloud Computing ] Cloud Computing Business Case Questions


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

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