Cloud Financial Maturity Spectrum
TYPES OF COSTS : Infrastructure Costs • One - Time Costs • Accounting Impacts
• Avoided Costs
On-Going Support ( MSP ) |
Understanding ‘ True ’ On- Premise Costs |
Cost-Saving Method Implementation ( Sustained Usage , etc .) |
Platform and Operating Environment Build Out |
Business Agility and Global Capabilities |
Reputation and Brand Value |
Infrastructure Costs ( Compute , Network , Storage ) |
Identifying OpenSource Opportunities |
Migration Costs ( Applications and Data ) |
CapEx vs OpEx Impacts |
Improved Availability , Redundancy , and Security |
Staff and Process Costs , Talent Recruitment |
Right-sizing Application Footprints for Optimization |
Identifying Applications to Retire |
Data Centers Shutdown Costs |
Depreciation Impacts to Accounting |
Application Cost Allocation and Tracking ROI |
Developer Productivity Impact on Revenue |
LESS MATURE Figure 2 : Achieving Cloud Financial Maturity
MORE MATURE
4 ) Your individual perspective on agility .
Finally , it is also important to take into consideration how different individuals at the same company view the benefits of agility . A CIO ’ s perspective will vary widely compared to how a Head of Infrastructure or Head of Engineering values their organization ’ s ability to change . This is a key nuance that greatly affects investment decisions . The most successful companies focus on the overarching business agility the cloud provides , a strategic perspective that is generally in line with how CIOs view their organization ’ s ability to change .
What We ’ re Seeing at CTP
The value of the cloud scales with the value that its agility brings to your business . In other words , the faster an industry needs to change , the more value cloud brings . No matter the industry , achieving financial maturity during cloud adoption is challenging and requires exploring all the economic considerations we ’ ve already discussed .
We see that a company ’ s cloud financial maturity on their cloud investment follows a consistent flow as the company matures . Companies early on in their cloud journey are focused on identifying hard costs and other clear cloud value drivers , which are easier to identify but provide a limited perspective to total ROI . Figure 2 depicts these considerations in light green at the beginning of the spectrum . As companies mature through their economic analysis and cloud adoption journey , their financial maturity increases as they start to understand the value of agility and other soft costs , which are depicted in dark green .
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