In an important industry contribution, The Open Group has published a white paper on how to build and measure cloud computing return on investment (ROI). Produced by the Cloud Business Artifacts (CBA) project of The Open Group Cloud Computing Work Group, the document:
- Introduces the main factors affecting ROI from Cloud Computing, and compares the business development of Cloud Computing with that of other innovative technologie;
- Describes the main approaches to building ROI by taking advantage of the benefits that Cloud Computing provide; and
- Describes approaches to measuring this ROI, absolutely and in comparison with traditional approaches to IT, by giving an overview of Cloud Key Performance Indicators (KPIs) and metrics
In presenting their model, business metrics were used to translate indicators of cloud computing capacity-utilization curves into direct and indirect business benefits. The metrics used include:
Speed of Cost Reduction;
Optimizing Ownership Use;
Dynamic Usage; and
Risk and Compliance Improvement;
A description of the ROI model used is also provided.
A definite must read!
Available online at http://www.opengroup.org/cloud/whitepapers/ccroi/index.htm
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