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Provide a balanced case for adopting a move to the cloud and increase your buy-in on the project with anticipated ROI.

When Presenting a Move to the Cloud, Provide a Balanced Case

Provide a balanced case for adopting a move to the cloud and increase your buy-in on the project with anticipated ROI.You’ve determined that a move to the cloud is in your company’s best interests, but now you have to sell it to the decision-makers. You may be tempted to start your presentation off right away by discussing the expected benefits from housing your solutions in the cloud, like flexibility, agility, performance, cost savings, and scalability. But your executives also want to know the return on investment (ROI), so be ready to discuss it in order to get buy-in on your transition.

Determine the cost of ownership for your on-premises option. While estimating the ROI of your on-premises solution may not be precise, it will still put cloud investment in perspective. There are three key pieces of information you should gather first:

  • The cost of the necessary equipment
  • The projected lifespan of the solution
  • The cost of capital (how much you could expect to earn if you invested that money elsewhere)

Next, gather information about your operating expenses:

  • Floor space
  • Staff to monitor and administer servers
  • Electricity
  • Security and backup services

Add up these costs and divide them by the projected lifespan of your equipment to estimate the monthly cost of ownership for an on-premises system.

Explain the value that the organization will gain from the cloud. There are a multitude of benefits you could discuss, but it’s important to talk about the financial gains that improve the overall ROI in a cloud transition versus an on-premises solution. There are several areas that will impact your cost savings in the cloud:

  • Less IT maintenance
  • Categorization of software subscriptions as operating expenses versus capital investments
  • No investment in hardware
  • Scalability and flexibility
  • Improved performance

Have a plan for controlling cloud costs. While it may be impossible to produce exact numbers for your ROI, you’ll gain more fans in the board room if you have a solid plan for controlling costs. For instance, how will your cloud solution handle cold data storage and how much will it cost to retrieve and rehydrate that cold data? It’s also good to have a plan for areas like cloud bursting and shadow IT. Determining the costs of migration will also prevent surprises when it comes to the total cost of ownership for a cloud solution.

At MicroCorp, we’re always ready to collaborate and innovate. We are committed to your success and would love to talk more about your cloud migration and find out how we can help. Contact us today to get started.

Reasons Your Technology Will Never Be Exclusively in the Cloud

Cloud adoption is increasing, but your technology will never be cloud-exclusive.It’s a nice picture, imagining all your software needs handled by one neat cloud service. In that picture, your team works without the encumbrance of hardware and your updates never interrupt anyone’s processing. You pay your monthly support and subscriptions, but are never forced to face a board of directors in a tight, itchy suit to get approval for a monstrous new software implementation.

The picture is nice, but it’s likely a corporate fairy tale. There are plenty of reasons why the idea of a cloud-only software environment is probably never going to be a reality:

Getting access: One of the key barriers to an exclusively cloud environment is the need for employees to be able to access applications. Even if every application is housed in the cloud, you’ll still need a way to get to your software and a way for your IT team to govern which team members are authorized to access each application.

Lifecycles of certain products: If you work in an industry in which products have a short lifecycle, it may seem that it’s just a matter of time before everything is in the cloud. On the other hand, when you consider a product like insurance, for example, you can see that on-site systems will be necessary for a policy that was created decades ago in an on-premises mainframe.

Security: The security of cloud software is often debated, but some aspects of the security issue aren’t related to whether cloud technology can protect your data. Some security discussions are about the possession of information and its legal, physical and virtual location according to regulations. IT professionals in the financial, banking, and legal industries must tread carefully when they consider cloud-based applications. There’s good reason to believe that some industries will never embrace cloud solutions because it would compromise legality.

Lock-in: Enterprises are often wary of the idea of locking in with a particular provider of cloud services. Even though cloud technology comes with agility and flexibility, it still requires an investment of time and money to implement a new application. As a result, companies are reluctant to partner with a single cloud services provider in a way that may prevent them from adopting other software that they need to optimize productivity or reduce costs.

To determine how to implement the best possible mix of cloud and on-site software for your company, talk with our consultants at MicroCorp. We can help you identify the applications that are a good initial choice for cloud software to improve efficiency and reduce costs.