Return on Investment (ROI) is the most often used measurement when making project investment decisions. It measures the rate of return versus the cost of the investment. Because ROI is a percentage, it is very easy to make quick comparisons when evaluating multiple options. There are only four ways to either increase revenues or lower costs, improving ROI numbers. The four financial levers are the following:
- Decrease investment
- Increase revenue
- Decrease costs associated with the activity
- Reduce the time required to attain revenue
Cloud computing can operate any of these levers but the simultaneous achievement of all four is impossible. The relationship between these factors is the most important aspect of cloud ROI, not the absolute values. For example, a project moving to a public cloud may resemble the following: initial investment decreases, operating...