The Indusa Blog

Cloud ROI – What to Expect

Posted by Indusa Admin on July 5, 2016 11:49 am

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Cloud adoption has taken center stage and enterprises are prioritizing how to migrate to the cloud and make use of the years of data they have accumulated. According to Gartner, the use of cloud computing is growing exponentially, and by end of 2016, this growth will increase to become the bulk of new IT spend. An InformationWeek Cloud ROI Survey As reported by Charles Babcock, Information Week’s Cloud ROI Survey from 2014 revealed that 20% of companies don’t calculate ROI for their cloud projects. The other 80% say they’re highly to somewhat likely to calculate ROI for cloud projects.

More and more organizations are realizing the benefits of migrating to the cloud over traditional approaches, which provide substantial gains in return on investment. However, while the early advantages are self-evident, the enduring gains from cloud cannot be measured easily, making ROI calculation difficult.

Cloud computing comes with a host of benefits and here’s what you can expect when adopting the cloud and measuring ROI:

  • Flexibility to change:

    Investing in cloud saves costs and time as the responsibility is transferred to the service provider. Users have the flexibility to adopt and eliminate the service or to scale up and down to use new services or even switch to another service provider.

  • Optimized TCO:

    A key facet of moving to the cloud is the ability to select relevant hardware, software and services from defined parameters. Existing infrastructure, skill sets, SLAs, and contract terms define an optimized TCO model.

  • Effective Cost Model:

    The pay-as-you-go model allows you to only pay for what you use, with no or minimum upfront investment costs.

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  • Improved Capacity Utilization:

    Moving to the cloud improves smarter utilization of IT services and enables cost-effective asset management

  • Increased workforce productivity:

    Integrated tools, pre-built templates and managed services allows your IT staff to build and manage applications faster, using skills they already have and technology platforms they have hands-on experience with.

Moving to the Cloud and Understanding ROI

ROI calculation is an essential step in knowing the success of your move to the cloud. Measuring savings in consulting and services is easy, but it’s essential to know how to evaluate savings from increased productivity, security, reliability, user-agreeableness, adaptability, and risk alleviation. Direct and indirect benefits to the business help in calculating the cloud ROI by assessing parameters based on change, increased margins, ownership optimization, risk, capacity utilization, and cost control.

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Estimating ROI is a critical part in ensuring that the path to cloud computing has been appropriately chosen and in realizing the true benefits of the implementation. The following are common components in terms of cloud gains and costs that should be considered.

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Moving to the cloud enables a complete transformation of your organization and creates a significant ROI – from administrative cost savings for many applications running today to providing the flexibility to invent new applications. Cloud is a transformational investment, and a move that many organizations are taking today – if you walk down that path, do it strategically by calculating cloud ROI.

Microsoft Azure, a public cloud computing platform, provides a range of cloud services like analytics, storage, networking and many more. It is the trusted cloud service with security, privacy, transparency and compliance embedded into it. Know how much your organization can save with the Azure platform. Check out the online TCO and ROI Calculator.

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About the Author – Neha Kumar

Neha Kumar is a digital media evangelist and marketing professional. She overlooks Indusa’s content management, social media, online events, email marketing, blogs, digital campaigns, lead generation and inside sales activities on a broader scale.