2. MISA Cloud Computing SIG
Evaluating ROI & TCO of Cloud Computing Initiatives
Prepared by: Bill Baldasti | bill@infusion.com | +1-416-524-8310
April 11th, 2012 | Waterloo, ON
3. 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
4. • Software as a Service (SaaS)
Types of • Most Mature
Cloud • Examples: Salesforce.com, Dynamics CRM Online, SharePoint
Online
Computing
• 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
5. Aside: Capex (or Capital Expenditure) is a business expense incurred to
create future benefit i.e. acquisition of assets that will have a useful
Accounting 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.
6. Capacity-
Utilization
Curve
• Cost savings to be realized by
avoiding under provisioning and
over provisioning
10. Additional Value 1. Resource Availability
– Free up critical resources for strategic work
adds / 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
11. Costs to • The Obvious Stuff
Consider – 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.
