Open Group Publishes Guidelines on Cloud Computing ROI

CloudCamp Federal @ FOSE

By G C Network | February 9, 2009

Sign up now CloudCamp Federal @ FOSE, March 10,2009, 3pm – 8:30pm at the Walter E. Washington Convention Center, 801 Mount Vernon Place NW , Washington, DC. As a follow-up…

Thank You NVTC “Cool Tech” and TechBISNOW !!

By G C Network | February 6, 2009

Thank you to Dede Haas, Chris D’Errico and the Northern Virginia Technology Council for the opportunity to speak at yesterday’s NVTC “Cool Tech” Committee meeting! The Agilex facilities were awesome…

A Significant Event in Cloud Interoperability

By G C Network | February 6, 2009

On Jan 20th, GoGrid released it’s API specification under a Creative Commons license. “The Creative Commons Attribution Share Alike 3.0 license, under which the GoGrid cloudcenter API now falls, allows…

Booz|Allen|Hamilton & Dataline Sponsor 2nd Government Cloud Computing Survey

By G C Network | February 4, 2009

Dataline, Booz|Allen|Hamilton and the Government Cloud Computing Community have teamed together to sponsor the 2nd Government Cloud Computing Survey. Cloud Computing has come a long way since the first survey six months…

Gartner Lays Out 7-year Plan for Cloud Computing

By G C Network | February 3, 2009

According to Gartner’s new report, cloud computing will go through three phases over seven years before it will mature as an industry; – Phase 1: 2007 to 2011 — Pioneers…

Cloud Interoperability Magazine Launches

By G C Network | February 3, 2009

My congratulations goes out today to Reuven Cohen on the launch of Cloud Interoperability Magazine. The site will focus on Cloud Computing, standardization efforts, emerging technologies, and infrastructure API’s. As the new…

Why Can’t We Eliminate the “Technology Refresh” RFP?

By G C Network | February 2, 2009

In order to maintain life cycle and technology, the Navy is upgrading server farms at fifteen (15) sites and any future sites throughout the Far East, Europe and Middle East…

Cloud & the Government Session at Cloud Computing Expo

By G C Network | January 29, 2009

Earlier this week I announced that I will be presenting at SYS-CON’s 2nd International Cloud Computing Conference & Expo in New York City this coming March 30-April 1, 2009. During…

CSC and Terremark target US Government with Cloud Computing

By G C Network | January 27, 2009

Today’s announcement by CSC reinforced the strong wave of cloud computing towards the Federal space. Ranked by Washington Technology Magazine as 9th largest (by contract dollar value) government contractor, this…

Should my agency consider using cloud computing?

By G C Network | January 26, 2009

This is clearly the question on the minds and lips of every government IT decsionmaker in town. Why should a government agency even consider cloud computing?  In reality, the decision…

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.