7 Factors to Consider When Developing a Cloud ROI

There are many different components that go into developing a Return on Investment (ROI). So what is the “right” calculation for your ROI? There is no one correct calculation, it can and should be modified to suite your situation. It all depends on what you want to include for your analysis. It is also important for you to decide what level of “disaster recovery plan” you envision for your company and deciding what is acceptable to you.

The 7 main factors to consider when developing your Cloud ROI are as follows:

  1. Capital Expenditure vs. Operating Expenditure: Understand the difference between the two and from there, you should be able to decide what will work best with your business plan.
  2. Location of the Data: Know where your data is, under a desk, or in a closet? What is your disaster recovery plan? If you rent a space at a data Center, know that cloud providers can get reduced rates based on the amount of space that is used. If you are able to, consolidate your data and invest in long term leasing plans. If you have considered moving to a Data Center, understand what the costs are for the move.
  3. Infrastructure: Usually hardware has about a 3 year life cycle, so it is important to know when that time is up if you need to purchase additional hardware or lease it. Develop your long term growth strategy. What is going to need to happen if there are any mergers or serious growth in the future? Cloud provides the ability to scale up or down as need quickly and easily. High upfront costs can be a barrier for new businesses.
  4. Security and Audit: Do you provide services that require an audit by a 3rd party? With cloud provider you can hand over SSAE reduce time and risk for your company. Make sure that your team is educated and proactively monitoring security threats. The cloud offers world class security on a small business budget.
  5. Staffing: How many people are currently on your staff and where do you envision this number to be in three years? Cloud provides “one-neck” philosophy where you are able to contact a provider 24/7.
  6. Licensing and Billing: Tracking licenses for administrative tasks and Microsoft Audits. Do you have enough licenses? Can you reduce and increase them as needed? The cloud helps you budget with pay-as-you—go services and flexible billing plans requiring no long-term commitment.
  7. Going Green: There is much to consider when you have a “Green” focus. Business are able to receive tax breaks and conserve energy and money. Telecommuting, offed by the Cloud, is a way to work from anywhere at any time on any mobile device or computer which can help cut down on fuel emissions and energy use.

To learn more about how to develop a Cloud ROI to justify your costs should you move to the cloud, view our webinar ondemand anytime.  If you are interested in moving some of your business solutions to the cloud, contact us anytime!


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