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Be a Hero with Cloud ROI – Whitepaper Outlines How to Determine Initial Cloud ROI

Stephen_Spector

Guest Post:  Matt Katz, Director, Cloud ROI Analysis Services, HP Helion

 

Who hasn’t read the reports and heard the promise of huge benefits to your business by moving to the cloud? Often these come in the form of difficult to measure productivity improvements and uplift to your business that you can’t easily correlate on your financial statement. While these benefits are real and do improve your business significantly, the move to the cloud is most frequently driven by one criteria – will I spend less on my IT systems and services after I move to the cloud? And the answer is - “it depends.”

 

There are several factors to consider when calculating your potential ROI:

  • How efficient is the utilization of your current IT assets and capacity?
  • What are your business’ variable IT capacity needs?
  • What are your data privacy and security requirements?
  • What types of workloads are you running?
  • How is your company growing, and what pressures does that growth put on your IT needs?
  • Are you operating in multiple geographies with varying requirements and regulations?
  • What are the competitive dynamics of your industry and how does that impact your IT?
  • What is your ability to fund large IT investments (CapEx vs. OpEx)?
  • How many resources are focused on software maintenance, upgrades, and patches?

 

This list is long and may feel intimidating, making it tough to figure out where to start. Before you open your spreadsheet to do the math, you need to understand the various types of clouds and which make the most sense for the workloads you are running. Vendors often have several types of clouds, including private, managed private, managed virtual private clouds, and public clouds. For most companies, a hybrid approach makes the most sense.

 

be a hero.PNGThe next step is to determine whether the cloud you need is cheaper than doing it yourself. This requires calculating your total cost of ownership, or TCO. You need to be sure to include all the associated costs of managing these workloads – hardware, software, labor, equipment, power, and facilities. There are also indirect costs of running your own IT.

 

For more information on the steps required to determine your ROI, including the two primary factors that are the biggest drivers of ROI in the cloud, download this whitepaper. If after your primary analysis you want to conduct a deep dive analysis to create your business case The HP Helion Cloud ROI Analysis team can help. We’ll assess whether moving to the cloud can save you money and how much that savings could be. Reach out to your HP sales representative to see how we can run an analysis for your business or contact me in the comments section below.

 

Senior Manager, Cloud Online Marketing
  • HP Cloud
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About the Author

Stephen_Spector

I manage the HPE Helion social media and website teams promoting the enterprise cloud solutions at HPE for hybrid, public, and private clouds. I was previously at Dell promoting their Cloud solutions and was the open source community manager for OpenStack and Xen.org at Rackspace and Citrix Systems. While at Citrix Systems, I founded the Citrix Developer Network, developed global alliance and licensing programs, and even once added audio to the DOS ICA client with assembler. Follow me at @SpectorID

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