Open Group Publishes Guidelines on Cloud Computing ROI

Vivek Kundra to Speak at NRO Showcase

By G C Network | June 8, 2009

On the 17 & 18 June, the National Reconnaissance Office (NRO) will present the premiere Innovative Solutions Showcase. Titled “Unleashing the Crowd in the Cloud: Igniting the Innovation Insurgency“, this event…

Secure Cloud Computing on Federal News Radio

By G C Network | June 1, 2009

Last week the Trezza Media Group, Flyzik Group and Federal News Radio combined to produce an outstanding Federal Executive Forum on Secure Cloud Computing. Moderated by Jim Flyzik, panelist included:…

My Meeting with Mr. Vivek Kundra

By G C Network | May 29, 2009

Earlier this week I had the distinct pleasure and opportunity to have a private meeting with Mr. Vivek Kundra. Although my time with him and Mr. Gary Washington (OMB/Egov &IT Internal…

Comments for Mr. Kundra (Thank you for the input!)

By G C Network | May 25, 2009

A little over a week ago I put out a request to my readers to help me with my meeting with Vivek Kundra.  The response has been awesome!! thank you…

Congratulations to Roger Baker !!

By G C Network | May 23, 2009

My congratulations goes out to Roger Baker !  I first met Roger a little over a year ago when he interviewed me for my present job at Dataline. At that…

NDU (IRM) and DoD CIO (NII) Co-Hosting Cloud Computing and Cyber Security Symposia

By G C Network | May 20, 2009

I’m proud to announce two important coming events. The Information Resources Management (IRM) College and the Office of the Assistant Secretary of Defense (Networks and Information Integration)/DOD CIO are co-hosting…

Please Help Me Plan My Meeting With Mr. Vivek Kundra !!

By G C Network | May 18, 2009

A couple of weeks ago, I was offered a chance to meet Mr. Vivek Kundra at the Eisenhower Executive Office Building in downtown Washington, DC. Needless to say, I was…

President Obama’s 2010 Budget Highlights Cloud Computing

By G C Network | May 12, 2009

President Obama’s 2010 Budget (pp. 157-158) has highlighted cloud computing as a key tool for improving innovation, efficiency and effectiveness in Federal IT. ” Cloud-computing is a convenient, on-demand model…

Federal Cloud Computing Heating Up !

By G C Network | May 7, 2009

As fellow blogger Reuven Cohen mentions in his post, Federal cloud computing is indeed heating up: Vivek Kundra held a US Federal Government Cloud Computing Summit yesterday The Federal CIO…

USA.gov “Flips the switch” to Cloud Computing

By G C Network | May 4, 2009

Last weekend, USA.gov shifted to a cloud computing platform. This move is expected to reduce infrastructure expenses by 90% and drastically improve flexibility. “‘We are flipping the switch tomorrow to…

In an important industry contribution, The Open Group has published a white paper on how to build and measure cloud computing return on investment (ROI). Produced by the Cloud Business Artifacts (CBA) project of The Open Group Cloud Computing Work Group, the document:

  • Introduces the main factors affecting ROI from Cloud Computing, and compares the business development of Cloud Computing with that of other innovative technologie;
  • Describes the main approaches to building ROI by taking advantage of the benefits that Cloud Computing provide; and
  • Describes approaches to measuring this ROI, absolutely and in comparison with traditional approaches to IT, by giving an overview of Cloud Key Performance Indicators (KPIs) and metrics

In presenting their model, business metrics were used to translate indicators of cloud computing capacity-utilization curves into direct and indirect business benefits. The metrics used include:

Speed of Cost Reduction;

Optimizing Ownership Use;

Rapid Provisioning;

Increase Margin;

Dynamic Usage; and



Risk and Compliance Improvement;

A description of the ROI model used is also provided.



A definite must read!

Available online at https://www.opengroup.org/cloud/whitepapers/ccroi/index.htm

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4 Comments

  1. Anonymous on May 4, 2010 at 7:50 am

    Wow, crucial find here Kevin. Their whitepaper has citations (which many information sources forego), and doesnt read like research. It is more on the business side and chock full of visualizations. I wish that the visualizations were described and labeled a little more accurately, and that the data in the diagrams was backed by some solid data. Despite, its a great read for convincing business execs, or convincing your wallet to invest money into these companies.

    My Cloud and tech blog:
    http://digitalcooings.wordpress.com



  2. Anonymous on June 13, 2010 at 4:39 pm

    Yes, WOW. The numbers are flawed. They are based upon cpu clock cycles, but ignore the AMOUNT OF WORK PERFORMED PER CLOCK CYCLE. This is very misleading. Take Azure: $.12 per hour – for what amount of work? A celeron or nehalem? The fudge factor could 100-500% or more because of this. That blows away the marginal gains of the capacity utilization case.

    Sorry, this ROI would not pass a good finance team.



  3. Ryan on June 16, 2010 at 8:50 am

    Nice Post…



  4. Irfan on June 16, 2010 at 11:50 am

    I would like to talk here about a Computing Conference which i attended Recently. I got a complete information about the Cloud computing and its services from the Cloud Computing and Virtual Conference 2009 which is the World's largest and virtual conference on Cloud computing. I got a good opportunity to meet and talk with the World's leading experts on Cloud computing.