The value of the cloud scales with the value that its agility brings to your business . The faster you need to change , the more valuable it will be .
The value of the cloud scales with the value that its agility brings to your business . The faster you need to change , the more valuable it will be .
Closely associated with utilization is IT infrastructure ’ s ability to scale up and scale down to support business agility . Traditionally , high utilization reduces IT spend , but limits agility and negatively impacts innovation and business growth . Conversely , the cloud can provide significant savings ( near 100 % utilization ) and nearly infinite agility . The value of this agility is challenging to calculate so we have a tendency to ignore it . That is a big mistake .
Are you quantifying agility ?
The business value of cloud is more about agility and utilization than any other cost consideration . Consider that the cloud provides us with the ability to provision and de-provision nearly unlimited resources as needed with complete control . Moving from 20 % to near 100 % utilization provides significant cost advantages and even greater value in the ability to quickly solve business problems without waiting for software and hardware procurement and installation . With the cloud , businesses can enter into new markets , accommodate new customers , avoid compliance penalties , or just move fast when they need to move fast , all while concurrently maintaining fully-utilized hardware and networking resources .
What ’ s more difficult to quantify is the value of countless ideas and projects that are started , only to be stalled or placed lower on the priority list because by the time the resources are provisioned 3 to 6 months later , other initiatives have taken priority . With the agility of the cloud , projects can be conceived , provisioned , and deployed within 24 hours - allowing for real-time planning and execution .
Uncovering the Real Costs & Benefits of Cloud
Most cloud ROI calculations don ’ t factor in agility or fully capture the costs of poorly utilized hardware . While charts illustrating the differences between CapEx vs . OpEx are relevant to the potential value of cloud , a more complex assessment is necessary to reveal the full picture .
In the following pages we go beyond simple CapEx vs . OpEx decisions and explore how leading enterprises are calculating their true value of cloud .
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