Cloud computing is quickly becoming a pre requisite of IT department for business organisations, big or small. Every industry is adopting cloud be it telecom industry or healthcare industry. It is a perfect solution for companies to cut down their IT costs, save money and leverage business operations to save time and increase profits.
Cloud computing is a technological change. The potential of cloud computing is recognized by some key technical features.
- The ability to create the impression of immeasurable capability performance.
- Infrastructure is abstracted which helps in applications not being locked to locations or devices.
- PAYG (Pay As You Go) usage of IT services.
- On demand service is available which can be scaled up and down as per requirements.
- One can have access to any applications and information from anywhere.
This is not enough. The above mentioned characteristics can be discovered in any non-disruptive solution. Why cloud computing is treated as a different solution is not only because if its incremental impact in terms of the rate of change, degree of cost reduction and explicit technical performance, but also can give 5 to 10 times more degree of improvement.
We all know how cloud is beneficial to organisations, however, it is very important to calculate ROI of cloud infrastructure so deployed which will help organisations to understand the benefits derived from cloud precisely based on facts and figures. Let’s look at the ways ROI should be calculated for the cloud infrastructure deployed in your organisation.
It is fast and easy to build and deploy apps in the cloud. Because of this, you can deploy more in less time. Which means organisations’ development blog gets cleared faster or reduces organisation’s development costs. One of the main benefits that organisations can gain from the cloud is its cost-efficiency. All expenses related to building applications which are traditional data center based are cut down. This helps in reducing up-front costs by choosing a subscription cloud model. Organisations pay only for what is needed. You won’t have to buy many servers and depreciate these servers. Cloud also offers benefit in terms of enhanced automation. A greater density of virtualized environment can be achieved. Around the globe, the server virtualisation density is around 9x to 10x. However, with cloud, you can have a density to 12x or even more than that. That is the additional automation which can be gained with cloud hosting services. The financial impact of this would be noteworthy depending upon the size of the organisation.
IT professionals should not possess great technical skills to operate in the cloud. Deploying cloud ensures that even a non-IT guy who does not possess technical knowledge can run and configure applications in the cloud. With this, you save on labor and expertise cost, installation costs and maintenance costs. On one hand, where there is a reduction in the expenses and costs, on the other hand, you can achieve rapid and vibrant provisioning of resources. When an organisation is operating on the path of expansion, more manpower and resources are required which can take a long time no matter how efficient an organisation is. Cloud computing enables rapid provisioning of resources to scale as per the growth or decrease and eradicating the need for new equipment or applications or removing equipments which are no longer needed. Easy to use applications ensure an ease to give training to new or existing employees thereby minimizing the downtime which improves the productivity of business very quickly.
Safety of Information
Cloud security must be positioned in association with company’s overall information security program including incidence management, risk management, governance and continuity. Many people have a misconception that cloud providers have partial ownership of the data which is stored on the servers. A cloud provider owns the “container” in which the data is stored basically. There have been a lot of developments since last few years in association with protection and security. As cloud adoption is rising, so are the security standards also rising as users are expecting a lot from the cloud in terms of security. Encryption of files ensures original user the admission required to access the information, which is not accessible to an outsider. With the cloud, security is of prime importance as security is the most crucial concern for organisations. Attacking, malicious attacks, theft of data etc. are avoided to a large extent with cloud computing.
Ability to Network and Store Data
Network access is needed to build a customer relationship, for later use of cloud services themselves. The next big changes in the cloud are in the areas of storage and networking. Systems which are built on proprietary hardware dominate network and storage areas. Technologies such as SDN and NFV promise to remove all the barriers and let organisation’s workload run on low-cost commodity hardware. However, SDN and NFV are not cloud technologies but are still deployed in case of cloud migration strategy. Both SDN and NFV give rise to persuasive benefits in networking and storage areas. Commercial companies want access to the maximum market. Greater is the potential for sales when they have greater access to their services. Having a broad network access as a characteristic is very important as a company can effectively implement added services which can be accessed by anyone, anywhere, using different devices. Compared to a personal computer, the cloud has the ability to store and accommodate a huge amount of data making it unlimited storage capacity. Your worries about running out of storage space are evaporated. Organisations do not have to worry about upgrading their computer hardware which further helps in reducing the overall IT costs.
Transferring your data to the cloud will reduce the demand on the hardware resources. There is need of less hardware in private cloud as pooled resources are better utilized. Whereas in public cloud, there will be less need for in-house servers and financial structure of the client will shift to operational expenditure from capital expenditure. Organisations will be saving on power consumption and more physical floor space. With data transfer one significant benefit organisations derive is reduced management costs. With the help of a number of tools in the market, data transfer to the cloud can be made very easy. Physical characteristics of the workload such as software services and operating system are preoccupied, which allow the data or the workload to match many cloud environments compared to traditional servers. However, it is important that you carefully plan the use of cloud services before substituting legacy systems. Organisations should find a way to retain their legacy systems without any disruptions while enjoying the benefits of cloud services. While transferring data to the cloud, disaster might take place as transferring data is not a simple task. However, with cloud organisations should not worry about the loss of data while transferring data to the cloud as cloud service providers do provide data backup, remote backup solution, recovery tools and techniques. Be assured as the cloud will take care of your data.
These measures will help you to measure your current and future IT services and business which are related to cloud computing. Not every organisation will measure ROI on the basis of above mentioned points but it will somehow be on these lines. However, it is difficult to measure ROI of cloud infrastructure as it is with regards to efficiency, time, downtime etc. Though it is intangible, ROI of cloud infrastructure can be very much considerable.