ROI for Cloud Investments

In continuation to my earlier post on how can enterprises embark on the journey to cloud, customers need to understand the very important aspect of calculating the ROI for cloud computing projects.

Possible ways to calculate ROI for Cloud Project:

Conventional ROI calculations were not designed to capture the complexity arising due to new computing models like cloud. Moreover, in cloud economy, return on intangibles is as important as the return on tangible. An ideal method for calculating ROI in Cloud Computing would be the one which will measure incremental improvement and disruptive transformation of the business process.

Let us look at the complexity for calculating ROI in cloud computing model. One key parameter to lookout for is time dependency of a workload in cloud computing model. This means that for an active life of an underlying asset, it can be provisioned many times over. It is like a ‘hotel-model’ where guests check-in and check-out. An effective ROI model will be the one which takes into account over-provisioning in a cloud model.

Like I mentioned above, we must measure intangibles for calculating true RoI in cloud computing. For example, cloud computing injects agility into IT process. Therefore, we must have the ability to measure changes to the current and future process maps and put a business value around the impact that cloud computing has had on the process map.

In a nutshell, it is important that the current ROI model be beefed up to capture nuances of cloud computing model for a true reflection.

About the Author

Deepak Jain is the Senior Vice President & Global Head, Technology Infrastructure Services business with worldwide responsibility for IT Infrastructure life cycle, Sales, Marketing, System Integration and Service Delivery businesses.

Deepak has 24 years of experience in the IT services business. He handled several key roles, during his two decade stint at Wipro. Before taking up his current role as the Global Head of Technology Infrastructure Services, he was heading the Professional Services division at Wipro InfoTech, catering to markets in India and West Asia. He was responsible for launching several new services - Application Operations, Technology Transformation services, Handheld managed services, Managed Voice operations, Retail Automation & Physical Security services. He played a key role in setting up multiple delivery centers in India, West Asia, Malaysia and Egypt and in setting up the Telecom solutions business in these geographies.

Deepak is based in Bangalore and is a thought leader in IT services. He holds a B.Tech. Electronics and Communication from the Delhi College of Engineering.

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