Your ROI When Migrating Your Business to the Cloud

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If you’re planning on migrating your business to the cloud, it can be a complicated task filled with many interlocking parts, each with its own risks and rewards. Calculating ROI for these moves can be difficult and means that you must measure the costs and benefits, as well as how they evolve over time when comparing an on-premise solution and several cloud options.

It’s not easy, but figuring out ROI is a critical determining factor in making informed decisions about how the cloud delivers value and how your business should invest in IT.

Here are several key factors to bear in mind when considering your cloud ROI.

  1. To Start, Actually Measure ROI – Many business owners believe that ROI after migrating to the cloud is inevitable. That’s not always the case. Learn where the cloud makes business sense and what the benefits and trade-offs are. This is invaluable for making an informed decision.
  2. ROI Varies Greatly Depending on the Delivery Model – If, for example, you’re migrating to an SaaS model (software as a service), it may take much longer to realize than the ROI of a more infrastructure-focused cloud service model.
  3. It’s Not Always All About Saving Money – Ultimately much of your ROI will be realized in the form of greater efficiencies, faster provisioning times, improvements in service, and the opportunity to unlock new revenue streams.
  4. ROI for IaaS (Infrastructure as a Service) Will Vary Widely – If you’re running a high-performance application two days per month and you need to double capacity, payback could be significant. If, however, you’re just running applications with steady daily use, you may have modest returns or even none at all.

Your return will change dynamically over time. Many businesses notice an increase in organizational efficiencies and reduced costs after reaching a tipping point. Being free of the work associated with purchasing, installing, maintaining, and upgrading hardware and software can pay off over months and years.

Migrating your infrastructure to the cloud creates significant opportunities to reduce costs and increase efficiencies. However, the ROI you’ll experience is completely dependent on the workload, the amount of time you’re willing to commit, and the cloud model you employ.

Thinking of migrating to the cloud but not sure what your options are?  Contact us today and we’ll be pleased to answer any questions you might have.

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