Enterprises constantly strive to increase their performance and reduce operating costs while maintaining a high quality of service. Many organizations have migrated to the cloud in the past few years due to growing advocacy for this technology by business users.
Cloud ROI is difficult to understand and measure for even the most experienced business managers. Below are some tips to aid you in maximizing the ROI of your cloud deployment.
Maximize Use of Cloud Resources
Enterprises should use historical data to predict future use of cloud resources and buy resources accordingly. If resources are being optimally utilized, there is no unused capacity that needs to be reallocated to a different task. Cloud deployment allows flexible scaling. Therefore, should the need arise increasing capacity is not a problem. Utilizing cloud resources to the fullest is the key to increasing ROI.
Minimize Security Risks
Many enterprises are exposed to security risks like data theft and loss of valuable information. To maximize ROI, it is necessary to employ adequate security measures. Most cloud service providers already incorporate this feature into their services, but enterprises should ensure that there are no security risks due to erroneous configuration or inaccurate use of a resource.
Deploy Cloud Applications with a Wide Footprint
To maximize the ROI of cloud deployments, companies should deploy applications that have a wide footprint. The footprint of an application means the amount of processes it will automate or take over completely. For example, if an organization uses a cloud application to act as an add-on to its HR department, it will still require a considerable staff to run day-to-day operations in that department. However, a similar application having a wide footprint will automate a multitude of tasks. This means that staff can be redeployed and utilized to fulfil other needs of the department. This will increase efficiency and save capital, which in turn maximizes ROI.
Minimize Hidden Costs
When an enterprise purchases services from a cloud service provider, there are many limitations on the use of applications and APIs that are being provided. These limitations might not seem like a threat when the system is being deployed, but as the operation grows, these might prove very costly for the users. Business managers should try to negotiate to get maximum use of applications and APIs in the contract even if it is not required at the current time. The high scalability of the cloud model is not very useful if there are strict limitations on use of resources.
Convert CAPEX to OPEX:
Business managers should try to convert the maximum amount of CAPEX (capital expenditure) to OPEX (operational expenditure). This is achieved automatically to some extent because the cost of purchasing servers, workstations and licences is eliminated. However, managers can maximize this conversion by signing a win-win deal with the service provider to provide other value added services like full scale IT support and maintenance contracts. This can also help in launching new services at a very reasonable cost.
Accurate ROI Analysis:
Cloud is a much-discussed phenomenon in business circles and amongst IT managers. However, there are actually very few people that fully understand it. Executives should try their best to examine each and every aspect of Cloud before performing ROI analysis for an enterprise or a project. An accurate calculation of ROI can help organizations take the rights steps for maximizing ROI.
Ensuring Easy Cloud Adaptability
Cloud computing has many tangible and intangible benefits that can be reaped by well-planned enterprise deployment. An important aspect to ensure successful deployment is promoting the use of cloud amongst all employees so they gain confidence and quickly adapt to this new technology. This will help management get rid of legacy systems as soon as possible without much resistance from staff. There is a direct correlation to an increase in cloud ROI and its widespread use in an organization.
Achieving the maximum ROI for any technology is of chief importance to any business. Cloud deployment not only enhances the efficiency and productivity in the workplace, but also allows scalability and makes future ventures more profitable. Business managers and IT administrators should make every effort to ensure the tips listed above are implemented to achieve maximum return on their investment. A well-planned cloud deployment is bound to save cost in operational expenditures as well as in capital required for future expansions.