BlogCloud Computing Implementation – Developing a Strategy for Success

Cloud Computing Implementation

In an earlier post, we shared some Gartner research that suggests the public cloud computing market will be about $162 billion by 2020—not including private cloud computing and related infrastructure. In fact, the data suggests that in just over a year, US enterprises will be allocating 80 percent of their IT budgets to cloud computing services. But while the pace of adoption and the share of IT budgets continue to rise, not all enterprises are prepared to tackle cloud computing solutions and their impact on the organization.

This ZDNet article – Today’s Cloud Computing Projects are Missing Something – a Strategy – shares some data from a Softchoice survey of 500 executives:

A majority, 54 percent, report their teams struggle to form an effective cloud strategy, and 52 percent lack a formalized cloud strategy altogether. Compared to IT leaders with no public cloud strategy in place, those with a formal strategy are less likely to grapple with cloud skills gaps, the cloud procurement model, and cloud budgeting. Fifty-eight percent of companies without strategies have experienced cloud failures, compared to only 22 percent of strategy-minded organizations. 

Nothing beats the confidence you feel when making informed business decisions based on reasonable assumptions and existing data – such as a cloud economic analysis. But obtaining reliable, actionable data isn’t always easy. To get realistic, accurate analyses that you can use to inform business executives of the costs, benefits, and risks of pursuing particular alternatives or optional solutions, you need an experienced team and a business-based analysis approach.

A well-honed methodology can analyze and compare multiple options, while identifying risks and measuring uncertainty, comparing cash flows, and evaluating the profit and loss (P&L) impacts of those options over a set period of time.

Experienced IT economists can also calculate and compare financial decision metrics such as net present value and payback period. They can often include analyses for the cost benefits, total costs of ownership (TCO), return on investment (ROI) or financial justification.

At the end of the day, having this data on hand can help overcome many of the challenges of cloud implementation, and lead to fewer cost overruns.

Be sure to download our latest eBook – Understanding the Cloud—What You Need to Know Before Diving In.

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Sign Up for a Free Cloud Workshop

Cloud Strategy and IT Transformation

Talk to a cloud expert who can help you make more informed choices as you develop your cloud strategy and transition your environment to the new cloud computing model.

Learn More

About the Author

Bob Mauro

Bob Mauro, IT Economist

As an IT Economist for ASG, Bob works as a client advocate by developing business cases, building financial models, and creating customized tools to help customers evaluate return on investment (ROI) and other financial considerations. He also offers a broad base of experience in accounting, finance, and business analysis.