How to Calculate Cloud ROI for Success!

Feb. 23, 2013 - PRLog -- How does ROI get affected by the Cloud Environment?
Cloud, as known by almost all the aware organizations is a flexible and reliable technology that allows their daily operations and tasks to move smoothly without the hassle of installing any  hardware or software applications. On the contrary, because cloud model, be it any platform say private, public or hybrid cloudarchitectures promote the idea of pay-as-you-grow. When such a case is followed, it is tough to calculate actual cloud ROI.

ROI Factors to Consider Before Calculation
Though for a better understanding, let us highlight those factors that should be considered important before calculating an actual ROI for the cloud environment.

Foremost thing that should be noticed is the fact where is the entire data stored? This particular thing should always be kept track of because the ROI calculations will primarily depend on this fact.

Second thing that needs to be understood well is that is your business entering into a new venture or is the existing one? Cloud costs vary tremendously because of the fact that they focus on pay-per-use model and thus, make businesses more viable to function smoothly.

Thirdly, keeping a track of operations running in the in-house IT premise as well as the ones on the cloud server is essential. This would help one analyze the total investments made in each one of them so that calculating ROI gets an easier task.

If the entire thing is not clear, let us take an example related to it:

Example:
Suppose ABC Corp has recently invested in the cloud technology and their choice of platform is public cloud. Now, the rate of investment in public cloud seems to be always low in the beginning but rises with due course of its action. As a matter of fact, when ABC Corp deployed cloud model in its infrastructure it wanted to calculate all the expenses it spent on the deployment of cloud architecture. So, what is that one thing it did to find out its return on investments in the entire process.

Methods for ROI Calculation
There can be two methods involved in the ROI calculations.

First thing is that, the company can differentiate the gross profit of the say two or more services it has stored in the public cloud storage and find out the return on each one of them.

Second thing that can be done in this relation is that they can calculate the ROIs of similar products or services on cloud by dividing their net income of an investment by the total value of investment of all the commodities.

Calculating ROI of Private Cloud Architecture
When we talk about return on investments for private cloud architecture, we probably want to focus on the fact that private cloud model gives more tilt towards earning high ROIs. This is because,  private cloud offers highly secured environment because it is one of the most controlled platforms that resides behind the firewall of your in-house IT infrastructures. Therefore, whatever profit will be gained will be on the basis of how well this platform is managed and monitored so that maximum gains are experienced at the organization’s end.

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