Tag Archives: ROI

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.