ROI metrics

When designing and building a business case for a cloud computing solution, the following metrics can assist with aligning a prospective solution with the business or mission need:

• Time: Cloud solutions optimize time required to deliver or execute business processes by decreasing the time required to provision resources or time required to consider multi-sourcing options. It can also decrease the time required to achieve specified goals associated with information technology services. This value also leads to a faster realization of reduced IT total ownership costs.
• Cost: Cloud computing can optimize ownership use by reducing the application portfolio total cost of ownership. This is realized through license cost reduction, open source adoption, and SOA reuse adoption. Cloud also optimizes the cost associated with delivering a specified IT service capacity by aligning IT costs with IT usage. The CAPEX versus OPEX utilization balance can be more effectively managed with pay-as-you-go savings.
• Quality: Cloud can improve service and product quality through customization and enhanced user relevance. It can also reduce ecological damage through reduced carbon footprint and advance organizational green sustainability goals.
• Optimizing margin: Metrics associated with the cost to deliver/execute business and supply chain cost is reduced, which increases product/service margin. Increased flexibility and choice across providers and feeder services can also help to optimize margin.