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Does the Cloud ROI Stack up- or does it fall?

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Does the Cloud ROI Stack up?

How do you judge the ROI of cloud?

How do you justify it?

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Does the Cloud ROI Stack up- or does it fall?

  1. Jonathan_W Does the Cloud ROI Stack up? Justin Pirie @justinpirie http://justinpirie.com jp@justinpirie.com Cloud Circle- London April 20th 2010
  2. Analyst Blogger
  3. Community Manager
  4. Social Media Influence
  5. Where I work
  6. Cloud Powered Email tipiro
  7. matthewbradley Email Security
  8. neilalderney123 Email Continuity
  9. dolescum Email Archive
  10. Benefits of Google Apps
  11. For Microsoft Exchange
  12. Over 500,000 users can’t be wrong!
  13. Jonathan_W Does the Cloud ROI Stack up?
  14. Robert S. Donovan Or does it fall?
  15. Why we’re really here...
  16. Which Cloud? tipiro
  17. William Vambenepe SPI stack
  18. IaaS ROI is about Utility Premium
  19. ASlightAdjustment http://www.flickr.com/photos/rustyboxcars/ CC BY-SA 2.0 William Vambenepe
  20. Ah... that one! tipiro
  21. Look back
  22. Carrick Mainframe era
  23. Mess of Pottage PC Era
  24. Store and search text! ThisIsIt2
  25. Guess who?
  26. Yes, them
  27. Cloud Paradigm Shift tipiro
  28. Need new goggles @kobak
  29. IXQUICK To judge the cloud
  30. JanneM New Tools
  31. Why Cloud? tipiro
  32. Flexibility khalid almasoud
  33. Empowers Jan Michael Ihl
  34. Agility Picture Taker 2
  35. Traditional IT Dept. @appirio
  36. Idea = Agile Picture Taker 2
  37. Reality for IT = Quicksand sasamaster
  38. xetark What users got...
  39. Business feeling about IT
  40. Outsourced IT Dept. @appirio
  41. Cheaper Labour... stev.ie
  42. Contracts, Change Requests Kevin H.
  43. Business feeling about IT
  44. IT using Managed services @appirio
  45. CarbonNYC In Control?
  46. Getting on better... Arno & Louise
  47. IT using Cloud @appirio
  48. Reality Picture Taker 2
  49. Align IT and business technicallyCreative
  50. Fall in love again
  51. The Telegraph newspaper
  52. @lmacvittie What next... Growing pains
  53. Cloud ROI is Complex- FACETS Swamibu
  54. Flexibility khalid almasoud
  55. Availability *Sally M*
  56. Cost shareski
  57. (user) Experience
  58. Timeliness Yukon White Light
  59. Security
  60. And now the science bit...
  61. Simplistic
  62. Again, Simplistic
  63. Simple ROI models are broken ° ρЯίтΛм ° [away]
  64. Compare Apples to Oranges helgasms!
  65. JanneM New Tools
  66. Flexibility khalid almasoud
  67. ms4jah Benefits
  68. Cost shareski
  69. Risk Adjust
  70. Need a methodology
  71. Jin's diary 87 Application
  72. Apply it to email
  73. 5 Customers, focused on a 5000 seat site
  74. Cost shareski
  75. matthewbradley Email Security
  76. neilalderney123 Email Continuity
  77. dolescum Email Archive
  78. Costs (non risk- adjusted, US$) Initial Year 1 Year 2 Year 3 Year 4 Year 5 Total PV Mimecast setup costs $3,000 $3,000 $3,000 Costs of internal labor (20 person days) $7,680 $7,680 $7,680 Costs for ingestion of existing email archives (2 TB) $42,060 $42,060 $42,060 Total SaaS fees per year ($60 per user per year) $300,000 $300,000 $300,000 $300,000 $300,000 $1,500,000 $1,137,236 Mimecast support charges $12,000 $12,000 $12,000 $12,000 $12,000 $60,000 $45,489 TOTAL costs $52,740 $312,000 $312,000 $312,000 $312,000 $312,000 $1,612,740 $1,235,465 Work out Cloud costs
  79. ms4jah Benefits
  80. Benefits (non risk- adjusted, US$) Year 1 Year 2 Year 3 Year 4 Year 5 Total PV Email filtering cost savings $90,000 $90,000 $90,000 $90,000 $90,000 $450,000 $341,171 Legacy systems cost savings $9,121 $5,787 $5,787 $5,787 $5,787 $32,270 $24,969 Total Cost Savings $99,121 $95,787 $95,787 $95,787 $95,787 $482,270 $366,140 Benefits (non risk- adjusted, US$) Year 1 Year 2 Year 3 Year 4 Year 5 Total PV Replication cost avoidance $129,636 $65,996 $65,996 $65,996 $131,236 $458,860 $348,540 Archiving infrastructure cost avoidance $367,160 $95,591 $95,591 $95,591 $398,631 $1,052,565 $797,411 Total Cost Avoidance $496,796 $161,587 $161,587 $161,587 $529,867 $1,511,425 $1,145,951 Cloud Benefits- Savings and Avoidance
  81. Benefits (non risk- adjusted, US$) Year 1 Year 2 Year 3 Year 4 Year 5 Total PV IT help desk productivity gains $7,744 $7,744 $7,744 $7,744 $7,744 $38,720 $29,356 eDiscovery productivity gains $30,528 $30,528 $30,528 $30,528 $30,528 $152,640 $115,725 End user productivity gains $138,233 $138,233 $138,233 $138,233 $138,233 $691,167 $524,013 Total productivity gains $176 505 $176 505 $176 505 $176 505 $176 505 $882 527 $669 094 Benefits (non risk- adjusted, US$) Year 1 Year 2 Year 3 Year 4 Year 5 Total PV Business continuity — move of a branch office $472,727 $472,727 $429,752 Business continuity — email availability during unplanned downtime $105,456 $105,456 $105,456 $105,456 $105,456 $527,280 $399,761 Total Business Continuity $578,183 $105,456 $105,456 $105,456 $105,456 $1,000,007 $829,513 Cloud Benefits- Productivity + Specific
  82. Benefits (non risk adjusted, US$) Year 1 Year 2 Year 3 Year 4 Year 5 Total PV Cost avoidance $496,796 $161,587 $161,587 $161,587 $529,867 $1,511,425 $1,145,951 Business continuity $578,183 $105,456 $105,456 $105,456 $105,456 $1,000,007 $829,513 Cost savings $99,121 $95,787 $95,787 $95,787 $95,787 $482,270 $366,140 Productivity gains $176,505 $176,505 $176,505 $176,505 $176,505 $882,527 $669,094 TOTAL benefits $1,350,605 $539,336 $539,336 $539,336 $907,616 $3,876,229 $3,010,698 Cloud Costs + Benefits
  83. Flexibility khalid almasoud
  84. Benefits (non risk adjusted, US$) Year 1 Number of users 100 SaaS Costs ($60 x 5 years) $30,000 Cost of On-premise $76,640 Flexibility Benefit $56,649 Flexibility scenarios e.g. New Office
  85. Ash Cloud Narisa
  86. Risk Adjust
  87. Totals- Non- risk adjusted
  88. Some complicated excel calculations... Ivan Walsh
  89. Totals- risk adjusted
  90. 0 200 400 600 800 1000 1200 1400 Year 1 Year 2 Year 3 Year 4 Year 5 $'000 Mimecast On-Premise Cloud Annual Investment
  91. 0 500 1000 1500 2000 2500 3000 3500 Year 1 Year 2 Year 3 Year 4 Year 5 $'000 Mimecast On-Premise Cloud Cumulative Investment
  92. “100% ROI in less than 100 days.” Chris Petrie, IT Director
  93. “A "SaaS first" policy is being enacted in the majority of small and midsize businesses” Feb 2010
  94. Trust but verify
  95. “You have to dive in to learn the lessons” Mark Brewer, CIO
  96. Elephant in the room.... David Blackwell (Dilettante)
  97. Network Effects and Ecosystems
  98. redteam Cloud Transforms IT guy
  99. Into a business enabler shindohd
  100. Jonathan_W Justin Pirie @justinpirie http://justinpirie.com jp@justinpirie.com Any Questions?

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