Open Group Publishes Guidelines on Cloud Computing ROI

Virtual Machines in Virtual Networks

By G C Network | August 4, 2008

One of the key value propositions in cloud computing is built around increase efficiencies. These eficiencies are diven by the use of virtual machines (VMware, XEN, etc.) and the automated…

SOA-R Interest Grows

By G C Network | August 1, 2008

Interest continue to grow in the use of cloud computing concepts for national security missions. Although some view the idea of a “private cloud” as an oxymoron, I personally see…

Microsoft: “Cloud Computing is the Plan”

By G C Network | July 31, 2008

From the Wireless Business & Technology Cloud Computing News Desk : “Ballmer highlighted software-plus-service, associating it with a ‘platform in the cloud and delivering applications across PCs, phones, TVs, and…

CC Tidbits

By G C Network | July 31, 2008

Interesting tidbits from Maureen O’Gara in Apple, Google, Yahoo & Cloud Computing: Industry gadfly John Dvorak is advancing a theory culled from the blogosphere that Microsoft wants Yahoo for some…

Correlative Analytics: Cloud Computing Google Mindshare

By G C Network | July 30, 2008

Correlative Analytics (A.K.A. “The Google Way of Science“) postulates that extremely large databases of information, starting in the petabyte level, may be sufficient to skip the theory part of the…

What is Cloud Computing? — Another view

By G C Network | July 29, 2008

Irving Wladasky-Berger, chairman emeritus of IBM’s Academy of Technology, recently wrote and article on cloud computing titled “What is Cloud Computing, Anyway?”. The following is my interpretation of a few…

Dark Cloud Computing

By G C Network | July 28, 2008

In his blog article “The Rise of The Dark Cloud” Reuven Cohen wonders about a growing interest in covert computing. Although he briefly mentions malevolent uses of the net, the…

July Military Information Technology magazine

By G C Network | July 25, 2008

This month’s issue of Military Information Technology magazine has the Army’s Chief Information Officer, Lieutenant General Jeffrey A. Sorenson, on the cover. The enclosed special report, titled LANDWARNET Transformation, has…

“The Big Switch” and Intellipedia Highlighted

By G C Network | July 24, 2008

During last week’s SOA-R session, Steven Armentrout referenced “The Big Switch” by Nicholas Carr as a very enlightened view of our changing world. On July 17th, Information Week’s Richard Martin…

Does anybody really know what cloud computing is?

By G C Network | July 23, 2008

Less than 2% of the CIOs in an Infoworld survey said that cloud computing was a priority. The surveyed indicated that server virtualization and server consolidation are their No. 1…

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

Bookmark and Share

Cloud Musings

( Thank you. If you enjoyed this article, get free updates by email or RSS – KLJ )

Follow me at https://Twitter.com/Kevin_Jackson

G C Network

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.