It used to be that the strongest case to be made for a business moving to the cloud was reducing costs. While that is certainly important, more businesses can make a case with other advantages such as process automation.
The Cloud provides great value to businesses and can quickly pay for itself. But in some situations many have trouble seeing the benefit or the return on their investment. As cloud computing continues to evolve assigning a value won’t become any easier.
To build a strong cloud business case, important considerations should be factored in as part of the equation. Cloud computing has split in new and unpredictable paths. At first, the cloud allowed companies to move from a capital operating expense (Capex) to operational expense model (Opex). These days, it’s all about the cost of ownership and cost of risk.
Building the business case for Cloud computing must be based on the kind of company and what their particular IT resource needs are now and in the future. Cloud technology costs less than most expected, but discounted prices might not last indefinitely. What happens if cloud prices level off or increase?
The metrics used to build a business case for moving to the cloud are different than they were just a few years ago. Concentration is on reducing IT costs, while increasing productivity and process. Lowering capital costs is still important in a cloud business case but attention needs to be on other elements like the agility and business processes that the cloud can bring to the table.
It’s also worth noting that the value placed on business agility can vary from company to company. A high-tech or financial firm will find more value in modifying or expanding process automation than a textile mill or paper manufacturer.
Prior to creating a case for the cloud you’ll need to understand your business and its needs. For example, is there a premium placed on changing and expanding IT assets? What are some of the things the IT department has done to automate the business and where do you think there needs improvement?
It’s also important to determine those areas that drive value whether it’s agility, business intelligence, cost savings, time-to-market, customer service, service to employees. You should assign a weight to each element.
After that, consider all the costs. Evaluate cloud service subscriptions, migration and new technologies like security and governance that will all be part of cloud-based technology. Even new hires will need to be factored in the equation.
Lastly, you must consider the risk when changing platforms in terms of migration and production. Many will place a higher risk on data breaches stemming from the cloud but there is not any evidence that is the case. And some believe the risks from breaches will actually go down.
Complicated and with much to consider, building a business case for cloud computing is whole lot easier when you take a look at your business and really understand it’s needs now and moving forward. If you are practical with your approach and realistic about the expectations cloud technology can provide, you will make the right case.
The ANTARA Group can help you make that case. If you would like more information, click here and fill out our contact form.