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Key Considerations for Evaluating ROI in Cloud Adoption Framework
by Tech Geekk writerBy this point, the mind-bogglingly fast-paced evolution of technology has become pretty evident. And with it, so has the fact that some technologies have come to play a noticeably crucial part in the business world. One such technology is cloud computing.
What is Cloud Computing?
It is really just the delivery of services — of computing services, to be precise. What that means is folks who use cloud computing receive or are able to access the desired computing services, such as storage, databases, servers, software, intelligence, analytics, and so much more — all over the Internet, i.e. the cloud.
Now, it is quite obvious that cloud computing has become central to many companies' efforts and rightly so. After all, this technology can help companies reduce costs, speed up innovation, enhance the agility and scalability of their operations, etc. So, as cloud computing’s popularity continues to rise and an equally quickly growing number of companies consider putting together their own cloud adoption strategy, there is one underlying question: how does one measure the ROI on all this investment on cloud computing.
If you too have been wondering how to assess cloud computing ROI before you finalize your strategy, you have come to just the right place.
Key Factors to Consider While Assessing ROI on Cloud Adoption
- Define objectives: It is absolutely vital that the company first obviously characterizes its goals for adoption of cloud technology. Are you looking to just decrease costs, further develop adaptability, or improve agility? Or are you hoping to accomplish completely different goals and objectives from this endeavor. Oh, and it would also be a good idea to ensure sync between the cloud adoption strategy and the overall business objectives to reliably measure how cloud computing contributes to the aforementioned goals.
- Identify baselines: Another must-do before you can measure the ROI on your cloud computing investment is establishing a baseline for your current IT costs and performance. What that means is baseline metrics, such as performance levels, operational costs, resource utilization, etc., for the existing on-premises infrastructure and/or legacy systems.
- Establish key metrics: Now that you have the goals and baselines in order, it is time to start working on identifying the key metrics that you will use to measure the ROI on your cloud computing investment. Make sure to prioritize the key performance indicators that are most relevant to your objectives. These KPIs could perhaps include revenue growth, cost savings, return on sales, customer satisfaction and user experience, etc. Now even though the metrics vary based on individual organization’s goals, what remains common is the need to define how these KPIs and metrics will be tracked and measured throughout the cloud adoption journey.
- Calculate cost savings: It goes without saying that cost savings is one of the most important metrics to track when you are trying to figure out the ROI on your investment. Anyway, do not forget to factor in both direct and indirect cost savings associated with cloud adoption. While direct cost savings could include reduced hardware and software costs, indirect savings may stem from reduced downtime, enhanced productivity, etc.
So keep these factors in mind to conduct a successful and comprehensive ROI assessment — so you can make informed decisions about your cloud adoption strategy.
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About Tech Geekk 
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57 connections, 0 recommendations, 254 honor points.Joined APSense since, March 9th, 2016, From San Jose, United States.
Created on Nov 2nd 2023 07:47. Viewed 94 times.
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