The eternal business challenge is to do more with less. The cost effectiveness of the Cloud is, therefore, its primary attraction. But, does the use of the Cloud really deliver more for less? Let us study the Return on Investment (ROI) from the Cloud and understand whether it is really worth giving up all kinds of traditional systems for Cloud adoption.
At the outset, it must be pointed out that the calculation of the ROI will vary from one organization to another. It will be determined by the Financial Practices within the company. However, one or all of the following factors may be taken into consideration:
- Costs of maintaining traditional backup and recovery setup vis-à-vis Cloud setup in the face of the increasing need for distributed computing.
- Costs of traditional data protection methods vis-à-vis Cloud data protection methods.
- Operational costs with traditional systems vis-à-vis Operational costs in the Cloud.
Additional ROI components that may be taken into consideration may be Net Present Value, Opportunity Cost, and Payback Period costs.
Employees today demand anywhere, anytime, any device access to information. This type of access facilitation is not possible with traditional systems that are hardwired. The Internet and Cloud computing have dispensed with the need for hardwiring and released the enterprise from its anchor while lowering costs of setting up and operating scalable, highly available and accessible computing infrastructures.
The Cloud accommodates application proliferation inexpensively. Application licensing is shared and economies of scale kick in to reduce the overall costs of maintaining multiplicity of applications. Collaboration tools, content management tools and communications tools are part of the Cloud offering and do not have to be deployed separately by the enterprise. All these applications are well supported by a vendor instituted support team 24 x 7 at no extra cost to the end user.
Cloud databases are legally compliant by design. No separate compliance services need to be instituted and managed. Cloud applications are designed to enforce the extant legal mandates and ensure that compliance is never compromised. Replication, mirroring and disaster recovery preparedness are ensured as part of the service offering and no separate efforts need to be made by the end user in this direction.
As a result, there can be no doubt that the ROI for the Cloud is higher. So, what is the ROI for your traditional system? Compare it with the ROI for the Cloud and make the move now!