The Doppler Quarterly Special Edition 2019 | Page 36

CLOUD
ECONOMICS:
ARE YOU GETTING
THE BIGGER PICTURE?
Every company has its own ideas on how best to determine cloud ROI. For many, it’s
capital expenses (CapEx) versus operational expenses (OpEx). Cloud computing shifts
IT spending to a pay-as-you-go model, like
utility billing; you only pay for what you use,
when you use it. For startups or new applica-
tions, this well-established argument is sound.
Why purchase hardware, data center space,
power and supporting software when they
can be rented by the hour at a higher utiliza-
tion rate? For enterprises, however, the deci-
sion is not so simple.
Enterprises have invested in data centers and
equipment that is already bolted into racks
and partially depreciated. For these organiza-
34 | THE DOPPLER | SPECIAL EDITION 2019
Identifying and making
the right economic
decisions requires
additional investigation
into the detailed costs
and benefits of
enterprise cloud.