Biztech Aug 7, 2012
ISACA outlines five hidden costs that enterprises may fail to anticipate when moving quickly to cloud-based services:
“According to the hype, cloud computing makes it easy to offer IT users the same self-service that people love when they turn on their lights or air-conditioning—it’s limitless, on-demand and pay as you go,” said Marc Vael, CISA, CISM, CGEIT, CRISC, International Vice President, ISACA. “But in reality, cloud computing is like every other IT innovation. Security, cost and complexity don’t disappear— they just need to be managed and accounted for.”
Enterprises are increasingly turning to public, private or hybrid cloud models to achieve such benefits as shifting cost from capital to operational, becoming more agile, and redeploying IT resources to higher-value-added activities. While these benefits are achievable, this latest guidance from ISACA details a 12-step process that takes a frank look at the complexity of cloud computing options and the importance of making an informed decision about long-term costs and payback.
An example of positive ROI as a result of cloud migration is CA Technologies, which uses a private cloud to enable resource pooling and on-demand and scheduled resource acquisition, and to support datacentre consolidation and standardisation.
“Early in our deployment we consolidated 44 locations and were able to drive millions in real estate savings and in productivity gains, as well as a 25 percent reduction in budget,” said George Watt, Vice President of Strategy, CA Technologies, who led the cloud deployment. “Yet, our newfound agility was the unsung hero. From our perspective, one of the most important steps in calculating ROI is ensuring second-order costs are considered so there is a legitimate understanding of the complete cost of cloud and non-cloud options.”
To help more companies effectively calculate the ROI for their cloud initiatives, the “Calculating Cloud ROI” white paper offers the following practical tips:
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