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Cloud ROI tools: You’re all worthless and weak!

January 14, 2013

worthless and weakLast week I wrote about how I love David Linthicum’s cloud computing blog at Infoworld. On Friday David wrote, Why cloud computing ROI tools are worthless. In the post, he writes:

‘Anyone who trots out the hoary “ability to avoid capex costs” concept as the primary driver for adopting the cloud simply lacks a clear understanding of how to determine the true value of cloud computing.’

I quickly opened up the study Forrester Consulting did for us on our cloud services, and the very first benefit they cite is…

Hardware cost avoidance


I wanted to drop and give David twenty more benefits, but Forrester’s Total Economic Impact study cites only nine more, including:

  1. Increased productivity
  2. Reduced services costs
  3. Improved data backup and protection
  4. Improved IT agility
  5. Leveraged Kronos expertise
  6. Minimized compliance risk
  7. Software upgrade cost savings
  8. Improved uptime and reliability
  9. Eliminated Hardware refresh costs

So while I don’t agree with David to just ignore cloud ROI calculators, I do agree anyone considering cloud must “do the deep work to understand what you truly need and what you don’t.” I’d recommend Joe McKendrick’s 9 Questions to Ask Before Signing a Cloud Computing Contract over at Forbes, plus make sure you talk to a few customers already using the services.

Not putting in the effort to really understand a cloud offering and the experience customers are having with it could put you in double secret probation. Whatever that is.

2 Comments leave one →
  1. January 21, 2013 6:12 pm

    Turning on a server in any old rack space place, simply misses the real advantages and ROI of cloud; calling that cost avoidance is like saying, I don’t need seat belts, air bags or insurance. While true, it most certainly isn’t the only reason; or, even the number one reason. Discussions with customers who weren’t aware of the Kronos Private Cloud realize they are missing out on tremendous value adds within Kronos Cloud Service offerings.


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