[ Cloud Computing ] Re: Cloud Computing Business Case Questions

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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