Welcome!

@CloudExpo Authors: AppDynamics Blog, Elizabeth White, Anders Wallgren, Dana Gardner, Liz McMillan

Related Topics: @CloudExpo, Java IoT, Industrial IoT, Microservices Expo, Containers Expo Blog, Agile Computing

@CloudExpo: Article

Five Key ROI Considerations When Adopting IT Enterprise Software

Each organization has its own business requirements and needs when evaluating technology

Corporations around the globe rely on having highly efficient IT networks, and introducing a new piece of enterprise software into the mix will have a far-reaching impact on the entire organization. The decision to purchase and implement new business IT software is not one to enter into lightly. The process may be convoluted because it may affect many different parts of the business and can be difficult to manage without a dedicated workforce focusing solely on software implementation and integration. This article will present a set of recommended cost/benefit criteria that should be considered when evaluating, implementing and measuring the ROI of implementing new IT management systems.

  • Cost of Deployment Across the Enterprise - Enterprises today demand the rapid deployment of new software to get up and running quickly and reduce lag time in their operations. Reducing the time of implementation is critical to measuring accurate ROI, as organizations cannot afford spending large amounts of time and resources to install new IT software that takes away from the business benefit of adopting such technologies.
  • Cost of Software - The range in cost for enterprise IT software is wide. But keep in mind that paying a high price does not ensure value, nor does it buy success. According to Gartner, Global IT spending will top $4 trillion by 2015 and in its Q3 forecast for 2012, IT spending growth has been reduced from 3.0% last quarter to 1.7% now. Don't be afraid to comparison shop and find the right software solution for your company that can scale with your business.
  • Associated Risks of Implementation - Understand what it means to move from technologies you are currently working with to the new way of doing things. If you are replacing an existing tool or software package, consider the ramifications of doing so and evaluate any potential exposures to your organization by making the switch. Taking time to speak with other companies or leading analyst firms may also help mitigate the risks associated with moving forward with one software solution over another.
  • Staffing, Training & Overhead - Some enterprise software packages have a steep learning curve and take quite a bit of training for system administrators to understand and use them on a daily basis. Calculating the costs of training existing employees for the new software and any decrease in the needs for support by adopting new systems is imperative. If the software provides a more streamlined way to centrally manage network maintenance with less overhead, include any reduction in the number of employees needed to configure and maintain such systems.
  • Cost-Savings Resulting from Implementation - Enterprises need to focus on their business challenges and problems at hand, not on the product road map for the technology they are using, to help achieve their business goals. Additionally, speed-of-innovation is critical to ensure you stay up-to-date with the latest capabilities of the market. Business software evolves fast. Selecting a solution that has a large community of contributors, such as an open source solution, drives product innovation that traditional in-house or proprietary development teams cannot touch. Some systems also offer additional cost-savings through a reduction in variable costs, the number of required servers, or a through a decrease in the amount of energy that is consumed. These are all important factors to consider in your ROI calculation when evaluating new software for potential cost savings.

Evaluation of Cloud-Based Models
Firms almost always consider cloud-based software-as-a-service (SaaS) as a cost advantage over on-premise in the short run due to its quick implementation times and pay-as-you-go pricing but this is not always the case. It becomes important to assess the long-term value of the cloud, evaluating if the rent-versus-own model necessarily has a cost crossover point and if so, when? As the cloud continues to move into a broader range of applications and into larger, more strategic deployments across enterprise IT, this model has become a major consideration for businesses.

The cloud may eliminate the need for firms to acquire their own instance of hardware, as well as, associated testing, frequently offering a turnkey preconfigured solution that firms can turn on in days or weeks with minimal configuration. While functionality may be limited through cloud services, a hosted solution may also make it easy for firms to deploy incrementally and may offer short commitments of monthly or annual contracts, which means that purchasing cycles are often shortened as well. Some on-premise software solutions also offer subscription-based pricing options and these should be considered based on the requirements of your corporation.

Regardless of whether or not a corporation elects to adopt a cloud or on-premise IT solution, each organization has its own business requirements and needs when evaluating technology to meet business goals and initiatives. Incorporating each of these considerations in your evaluation process will help ensure you are implementing the right technology that will not only address your needs today, but will be flexible enough to grow with your organization through the future.

More Stories By Deepak Kumar

Deepak Kumar is CTO and Founder at Adaptiva. He is responsible for strategic product direction and leads the development organization. He was the lead program manager with Microsoft's Systems Management Server 2003 team and program manager with the Windows NT Networking team. Prior to Microsoft, he was a group manager for IP Telephony products at Nortel. Dr. Kumar has received five patents related to his work on SMS 2003 at Microsoft and has written more than 50 publications, including a book on Windows programming. While at Microsoft, Dr. Kumar also authored the Thinkweek paper for Bill Gates that became Project Greenwich, now known as Microsoft Office Communications Server / Lync.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@CloudExpo Stories
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...
Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified – now it's a component-based well-performing framework. This immersive one-day workshop at 18th Cloud Expo, led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and the product company SuranceBay, will provide you with everything you wanted to know about Angular 2.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
Peak 10, Inc., has announced the implementation of IT service management, a business process alignment initiative based on the widely adopted Information Technology Infrastructure Library (ITIL) framework. The implementation of IT service management enhances Peak 10’s current service-minded approach to IT delivery by propelling the company to deliver higher levels of personalized and prompt service. The majority of Peak 10’s operations employees have been trained and certified in the ITIL frame...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
Between the mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at 18th Cloud Expo, Charles Kendrick, CTO & Chief Architect at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how business and devel...
If there is anything we have learned by now, is that every business paves their own unique path for releasing software- every pipeline, implementation and practices are a bit different, and DevOps comes in all shapes and sizes. Software delivery practices are often comprised of set of several complementing (or even competing) methodologies – such as leveraging Agile, DevOps and even a mix of ITIL, to create the combination that’s most suitable for your organization and that maximize your busines...