Open Group Publishes Guidelines on Cloud Computing ROI

NPR on Cloud Computing

By G C Network | August 29, 2008

You know it’s important when NPR covers it !! On the “All Things Consider” radio show, NPR took a look into cloud computing. I’m not sure if Computing In The…

Sun Federal Cloud Computing eBook

By G C Network | August 28, 2008

Sun Federal now has it’s ebook on cloud computing available for all. The website doesn’t really offer any new information, but it does highlight how Sun Federal is targeting the…

Amazon Elastic Block Store

By G C Network | August 27, 2008

Last week, with their announcement of Elastic Block Store, Amazon has made enterprise class storage in the cloud a reality. According to Dion Hinchcliffe of Ziff Davis,”Elastic Block Store finally…

HP CTO On the Future

By G C Network | August 26, 2008

In a recent Web Guild article, Shane Robinson, Chief Strategy & Technology Office for HP outilined his belief that we are in the early stages of a major shift. As…

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By G C Network | August 25, 2008

As reported by the Christian Science Monitor, “As Georgian troops retreated to defend their capital from Russian attack, the websites of their government, also under fire, retreated to Google. In…

Apptis and Servervault announce Fedcloud

By G C Network | August 22, 2008

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SOA-R Educational Series Schedule Changes

By G C Network | August 21, 2008

Since launching the SOA-R series back in July, cloud computing has become a hot topic among national security professionals. Evidence of this high level of interest is obvious from the…

Comments from Mr. Robert Carey, DON CIO and Army COS General George W. Casey, Jr

By G C Network | August 20, 2008

Over the last couple of weeks, I’ve had the distinct pleasure to listen to both Mr. Robert Carey, CIO, Department of the Navy, and General George W. Casey, Jr., Chief…

Akamai at SOA-R Session

By G C Network | August 19, 2008

Had another very enlightening SOA-R session last week. Of particular note to me was Akamai’s vision of cloud computing. As presented by Fran Trently, Sr. Director Public Sector, Akamai is…

Six Benefits of Cloud Computing

By G C Network | August 18, 2008

A Public CIO magazine article, to be published later this fall, will highlight six main benefits of cloud computing. Reduced Cost Increased Storage Highly Automated Flexibility More Mobility Allows IT…

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.