MISA Cloud Computing SIGEvaluating ROI & TCO of Cloud Computing InitiativesPrepared by: Bill Baldasti | bill@infusion.com ...
Agenda   Types of Cloud Environments         Optimal Workload Patterns for the Cloud         ROI/TCO Measurements         ...
•   Software as a Service (SaaS)Types of         •   Most MatureCloud            •   Examples: Salesforce.com, Dynamics CR...
Aside:       Capex (or Capital Expenditure) is a business expense incurred to             create future benefit i.e. acqui...
Capacity-UtilizationCurve              • Cost savings to be realized by                avoiding under provisioning and    ...
Workload Patternsfor CloudComputing:Optimizing Coststo embrace thesePatterns
Measuring ROIacrossCategories                Source: The OpenGroup – Building Return on Investment from Cloud Computing
Cloud ROICost SavingsModels               Source: The OpenGroup – Building Return on Investment from Cloud Computing
Additional Value   1.   Resource Availability                        –   Free up critical resources for strategic workadds...
Costs to   • The Obvious StuffConsider      – Hardware              – Networking Infrastructure & Bandwidth              –...
Sample:               • Physical Architecture:                             – 3 node Farm: 2 front-end servers (HA), 1 Data...
MISA Cloud workshop_Cloud_roi_tco_analysis
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MISA Cloud workshop_Cloud_roi_tco_analysis

  1. 1. MISA Cloud Computing SIGEvaluating ROI & TCO of Cloud Computing InitiativesPrepared by: Bill Baldasti | bill@infusion.com | +1-416-524-8310April 11th, 2012 | Waterloo, ON
  2. 2. Agenda Types of Cloud Environments Optimal Workload Patterns for the Cloud ROI/TCO Measurements It’s not just the Financials Cloud vs. On-Prem Sample + Discussion
  3. 3. • Software as a Service (SaaS)Types of • Most MatureCloud • Examples: Salesforce.com, Dynamics CRM Online, SharePoint OnlineComputing • Platform as a Service (PaaS) • Service & Management Layer of the Cloud Platform • Example: Azure • Infrastructure as a Service (IaaS) • Foundational Layer of Cloud Computing, includes raw storage, compute, backup, disaster recovery, databases, security • Example: Amazon Web Services
  4. 4. Aside: Capex (or Capital Expenditure) is a business expense incurred to create future benefit i.e. acquisition of assets that will have a usefulAccounting life beyond the tax year. e.g. expenditure on assets like building,Tutorial hardware, or software. Operational Expenditures (Opex) deal with the required day-to-day functioning of the business, like wages, utilities. Opex is the money the business spends in order to turn inventory into throughput. Capex Opex Accounting Cannot be fully deducted in the Operating expenses are fully period when they were deducted in the accounting Treatment incurred. Tangible assets are period during which they were depreciated and intangible incurred. assets are amortized over time.
  5. 5. Capacity-UtilizationCurve • Cost savings to be realized by avoiding under provisioning and over provisioning
  6. 6. Workload Patternsfor CloudComputing:Optimizing Coststo embrace thesePatterns
  7. 7. Measuring ROIacrossCategories Source: The OpenGroup – Building Return on Investment from Cloud Computing
  8. 8. Cloud ROICost SavingsModels Source: The OpenGroup – Building Return on Investment from Cloud Computing
  9. 9. Additional Value 1. Resource Availability – Free up critical resources for strategic workadds / ROI 2. Cloud can require less Professional Services – As cloud matures, it could lower costs required for SI, hardware and/or infrastructure services • Impact on SDLC – Budgeting for performance tuning can impact financials in addition to QoS
  10. 10. Costs to • The Obvious StuffConsider – Hardware – Networking Infrastructure & Bandwidth – Software Licensing Costs • Others to consider – Professional Services fees: Setup, Support, Integration – Power Costs – Hardware Warranty Costs – Financing Costs – Helpdesk Costs – Backups/AV/Patching/Updates – Time to Market Costs – etc.
  11. 11. Sample: • Physical Architecture: – 3 node Farm: 2 front-end servers (HA), 1 DatabasePublic Portal Web Front End: Dell PowerEdge R410, 2x Intel CPU, 4GB Ram, 4x RAID 300GB $5,485 CAD ea. $10,970 Database Server: Dell PowerEdge R510, 2x CPU, 16GB RAM, RAID, $5,756 CAD ea. $5,756 Other Costs: • Server maintenance • Network bandwidth • Security Infrastructure Requirements • Network Infrastructure Requirements
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