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IT Performance system helps prove cloud ROI

I ran across an interesting article the other day by ZDNet blogger Joe McKendrick. McKendrick cites a new cloud survey for The Open Group. The survey says that many believe cloud will bring favorable ROI to IT shops, but they lack a mechanism to track results.

ROI is a purely financial calculation which is usually expressed as a dollar amount or a percentage. The catch is many IT shops don’t know what a project or a service costs. If you don’t know how much you will invest to get to cloud and how much cost you’ll take out by doing it (return), ROI will stay illusive.


Cloud computing is predicted by many to be a fundamental shift in the way IT works. As more public cloud applications become available, which are nicely priced on a per-user-per-month basis – IT management is going to need to have the same information and more.


Good or bad, the per-user-per-month metric is not the only consideration your company has  if it matches most of those surveyed. Agility, innovation, business alignment and more are being asked of IT management. Each of these are hard to measure now. Cloud adds more moving parts which rarely makes things easier.

What to do? Start now creating your own IT Performance system. How? Start thinking about all the KPIs (key performance indicators) you wish you had that can be derived from data that exists somewhere in the organization.


Here are some examples:

  • % of service performance not met
  • MTBF (mean time between failure)
  • MTTR (mean time to repair)
  • Time-to-market of new IT products or services

The way you will prove ROI is seeing improvement in these (and other) measures after moving to cloud.



Related items:

· Peak performance demands precision control: Fine tune the business with a comprehensive IT performance system.

· Learn more about HP Software and IT Performance Management.  

· Do you know how your IT organization’s performance measure’s up? Take the CIO online assessment tool.

· Are you ready for the cloud? Take the Cloud online assessment tool.


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Labels: IT Performance
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