Project investigate the ROI of cloudbased software developme

Project

investigate the ROI of cloud-based software development environments

Solution

Overview

Today, organizations of all sizes are investigating cloud computing and the benefits it can bring to their company. Given the numerous claims of savings and productivity improvements, it can become difficult to understand exactly how these benefits might apply to specific IT environment.

The analysis of the customer payback for implementing cloud computing can be organized into five key areas:

o Hardware

o Software

o Automated provisioning

o Productivity improvements

o System administration

All five of these areas can see significant reductions in cost and/or gains in productivity with the implementation of cloud computing.

Regardless of size or industry, there is a very short payback time and very high projected annual and many years return on investment. The payback period is shortest and the ROI is largest for the large environments, due to the economies of scale associated with the service management software. The cumulative cost comparison graphs shows that Cloud computing savings continue to grow over time. I sectors like banking with a large number of servers they are evolving to a cloud environment. The system administration costs are significantly reduced due to efficiency gains in administration driven by the implementation of service management software. The service management software enables an administrator to manage more systems and as a result fewer administrators are required. The provisioning costs are significantly reduced through the use of automation, which greatly reduces the time required to provision resources. They experience a huge improvement in their productivity associated with their testing activities; however in overall percentage terms these savings are much smaller than the large savings in provisioning and system administrator costs. Productivity improvements can manifest themselves into increased revenues and happier companies over time.