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8/4/2014
09:26 AM
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Cloud ROI: Why It's Still Hard To Measure

Why does calculating cloud ROI remain so tough? Examine the tactics used by two cloud innovators, GE and Airbnb -- plus our exclusive survey.
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MDMConsult14
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MDMConsult14,
User Rank: Moderator
8/12/2014 | 1:33:28 AM
Re: Cloud ROI - Application Development Cost
Privacy challenges are still a concern. There are also constraints in innovation with government cloud. There are also private cloud concerns which involve trust, enabling users the proper knowledge to understand what they signed up for and being able to measure while building trust and getting the user to collaborate in return of resources back to the pool.
Charlie Babcock
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Charlie Babcock,
User Rank: Author
8/11/2014 | 6:29:46 PM
Can Linux containers help?
Keith, XComponents sounds like a good idea. Do you have other developers working with you on this project? Agreed app development for the cloud or migration of apps to the cloud is an important cost point. I'm looking for new ways of using Docker to cut  some of those costs. How about the micro services approach, where every application service is run in its own Docker container?  
keith78201
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keith78201,
User Rank: Apprentice
8/8/2014 | 2:21:49 PM
Re: Cloud ROI - Application Development Cost
In case I mislead anyone, XComponents are not finished yet.  They are a project of mine at BitBucket, which is an open source project hosting site, in the cloud.
KeithW165
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KeithW165,
User Rank: Apprentice
8/7/2014 | 2:40:06 PM
Cloud ROI - Application Development Cost
Here'a a project I just created at BitBucket which eliminates one of the CloudROI cost drivers: application  development time: https://bitbucket.org/keith78201/xcomponents.

Application porting and development are the single biggest cost drivers.  A large organization like GE with substantial investment in I.T. infrastructure would benefit from leveraging this investment as much as possible into the next generation of data access applicaitons, which clearly is the Cloud.  XComponents allow the end user to design their own applications which access existing data stores via Java'd JDBC APIs, DataSource included.  They do this by providing a completely GUI controlled drag and drop design environment, where the user connects GUI controls, data sources, analytics, and views by simply dropping them into a view layout. 

My project management method is Scrum, so I need to hear from potential users.

Thanks,

Keith
kbannan100
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kbannan100,
User Rank: Strategist
8/5/2014 | 11:05:43 PM
Re: Hard to Believe
Absolutely agree. I think this idea of a hybrid cloud roll out is appealing to a number of companies. After all, there is just some data people aren't willing to put into a public cloud architecture. Solid story about the appeal and role of a hybrid cloud here: http://bit.ly/UDlhRs

--KB http://bit.ly/1iMdSE5

 

 
ChrisMurphy
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ChrisMurphy,
User Rank: Author
8/5/2014 | 9:12:55 AM
Re: Hard to Believe
GE isn't making a wholesale shift to the public cloud; it's experimenting, measuring, while also building company-owned, private cloud capacity. We've seen other leading companies take a similar approach -- FedEx CIO Rob Carter has been driving this strategy, building a data center on a private cloud architecture that mimics a public cloud, so IF the public cloud makes sense in terms of security and economics in the future, they can shift there.  
zaious
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zaious,
User Rank: Ninja
8/4/2014 | 11:53:53 PM
Re: Hard to Believe
In some years, the GE story will be a legendary tale -it may be a great decision or 'a not-so-great one'. I believe all companies should not just jump the band wagon -everyone needs to evaluate where the stand and where they want to go.
Laurianne
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Laurianne,
User Rank: Author
8/4/2014 | 4:15:32 PM
Re: Hard to Believe
GE has a lot of incentive, unlike the vendors, to measure and report that data (internally) accurately. Most companies have learned from how bad their cost baselines were when they started down the road to virtualization ands hybrid cloud. Most people struggled to prove ROI becuase the "before" numbers were so questionable. I don't think IT wants to be in that spot again.
Lorna Garey
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Lorna Garey,
User Rank: Author
8/4/2014 | 1:13:45 PM
Re: Hard to Believe
I think we tend to forget how relatively new the idea of running enterprise-class tech in the cloud really is. It'll take another couple of years to fully shake out the true numbers -- that is, IF the companies doing it track the right metrics and report on them objectively. Those are big "ifs."
TerryB
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TerryB,
User Rank: Ninja
8/4/2014 | 12:51:15 PM
Hard to Believe
It makes no sense to me that a company of GE's scale can "rent" it's services cheaper than it can own them. It's baking some nonsense into it's calculation.

My best friend works for GE Aircraft Engines in Cinci Ohio. Hard to believe GE would want to run that shop floor from the internet, I don't care how many redundant circuits they have. They have their own power substation at that plant, for God's sake. Yet outsource the IT infrastructure.

I'll be fascinated to see how this turns out.
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Multicloud Infrastructure & Application Management
Multicloud Infrastructure & Application Management
Enterprise cloud adoption has evolved to the point where hybrid public/private cloud designs and use of multiple providers is common. Who among us has mastered provisioning resources in different clouds; allocating the right resources to each application; assigning applications to the "best" cloud provider based on performance or reliability requirements.
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