09-07-10 | Blog Post

Business Value of Cloud Computing: Where Does Initial Capital Expenditure Fit?

Blog Posts

In the 5/17/10  InformationWeek  article “5 Steps To Smart SaaS Operations” by Michael Healy, the article speaks to the 5 SaaS pitfalls and how to avoid them.

In the dollars and sense section of the article, he says, “if you think operating expenses are the TOP consideration, you think wrong.”

In a survey of 393 business pros, they asked which of nine factors had the greatest likelihood of being incorporated into an ROI study at their companies on the business value of cloud computing. The number #1 answer was initial capital expenditure.

A very interesting finding considering that there are many (private) cloud computing offerings that require zero capital expenditure. Much like a managed dedicated server, if you host with a managed data center operator, the capital expenditure is taken on by the data center provider.

What would you consider a top factor for an ROI study on the business value of cloud computing?

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