Click here to close now.

Welcome!

Cloud Expo Authors: Elizabeth White, David Sprott, Liz McMillan, Pat Romanski, Carmen Gonzalez

Related Topics: Cloud Expo, Java, XML, Microservices Journal, Virtualization, Web 2.0

Cloud Expo: 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
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile ...
"We have developers who are really passionate about getting their code out to customers, no matter what, in the shortest possible time. Operations are very focused on procedures and policies," explained Stan Klimoff, CTO of Qubell, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developmen...
It's time to face reality: "Americans are from Mars, Europeans are from Venus," and in today's increasingly connected world, understanding "inter-planetary" alignments and deviations is mission-critical for cloud. In her session at 15th Cloud Expo, Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems, discussed cultural expectations of privacy based on new research across these elements
Agility is top of mind for Cloud/Service providers and Enterprises alike. Policy Driven Data Center provides a policy model for application deployment by decoupling application needs from the underlying infrastructure primitives. In his session at 15th Cloud Expo, David Klebanov, a Technical Solutions Architect with Cisco Systems, discussed how it differentiates from the software-defined top-down control by offering a declarative approach to allow faster and simpler application deployment. Davi...
Sematext is a globally distributed organization that builds innovative Cloud and On Premises solutions for performance monitoring, alerting and anomaly detection (SPM), log management and analytics (Logsene), and search analytics (SSA). We also provide Search and Big Data consulting services and offer 24/7 production support for Solr and Elasticsearch.
Plutora provides enterprise release management and test environment SaaS solutions to clients in North America, Europe and Asia Pacific. Leading companies across a variety of industries, including financial services, telecommunications, retail, pharmaceutical and media, rely on Plutora's SaaS solutions to orchestrate releases and environments faster and with integrity. Products include Plutora Release Manager, Plutora Test Environment Manager and Plutora Deployment Manager.
WSM International has launched a DevOps services division that offers assessment, consulting and implementation to large enterprises and organizations with complex infrastructures. The concept of DevOps is to blend information technology (IT) software development with operations to optimize the computing infrastructure according to the specific needs of the organization. According to a recent press release from Gartner, "By 2016, DevOps will evolve from a niche strategy employed by large cloud ...
Advanced Persistent Threats (APTs) are increasing at an unprecedented rate. The threat landscape of today is drastically different than just a few years ago. Attacks are much more organized and sophisticated. They are harder to detect and even harder to anticipate. In the foreseeable future it's going to get a whole lot harder. Everything you know today will change. Keeping up with this changing landscape is already a daunting task. Your organization needs to use the latest tools, methods and ex...
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises a...
WSM International is launching a DevOps services division that offers assessment, consulting and implementation to large enterprises and organizations with complex infrastructures. This is the first independent services company to create a dedicated practice to help organizations looking to transition to the DevOps model. The concept of DevOps is to blend information technology (IT) software development with operations to optimize the computing infrastructure according to the specific needs of ...
Cloud is not a commodity. And no matter what you call it, computing doesn’t come out of the sky. It comes from physical hardware inside brick and mortar facilities connected by hundreds of miles of networking cable. And no two clouds are built the same way. SoftLayer gives you the highest performing cloud infrastructure available. One platform that takes data centers around the world that are full of the widest range of cloud computing options, and then integrates and automates everything. J...
With the arrival of the Big Data revolution, a data professional is expected to master a broad spectrum of complex domains including data processing, mathematics, programming languages, machine learning techniques, and business knowledge. While this mastery is undoubtedly important, this narrow focus on tool usage has divorced many from the imagination required to solve real-world problems. As the demand for analysis increases, the data science community must transform from tool experts to "data...
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
15th Cloud Expo, which took place Nov. 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, expanded the conference content of @ThingsExpo, Big Data Expo, and DevOps Summit to include two developer events. IBM held a Bluemix Developer Playground on November 5 and ElasticBox held a Hackathon on November 6. Both events took place on the expo floor. The Bluemix Developer Playground, for developers of all levels, highlighted the ease of use of Bluemix, its services and functionalit...
In today's application economy, enterprise organizations realize that it's their applications that are the heart and soul of their business. If their application users have a bad experience, their revenue and reputation are at stake. In his session at 15th Cloud Expo, Anand Akela, Senior Director of Product Marketing for Application Performance Management at CA Technologies, discussed how a user-centric Application Performance Management solution can help inspire your users with every applicati...
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo – to be held June 9-11, 2015, at the Javits Center in New York City, NY – is now accepting Hackathon proposals. Hackathon sponsorship benefits include general brand exposure and increasing engagement with the developer ecosystem. At Cloud Expo 2014 Silicon Valley, IBM held the Bluemix Developer Playground on November 5 and ElasticBox held the DevOps Hackathon on November 6. Both events took place on the expo fl...
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The truth is, today’s databases are anything but agile – they are effectively static repositories that are cumbersome to work with, difficult to change, and cannot keep pace with application demands. Performance suffers as a result, and it takes far longer than it should to deliver new features and capabilities needed to make your organization competitive. As your application and business needs change, data repositories and structures get outmoded rapidly, resulting in increased work for applica...
Docker offers a new, lightweight approach to application portability. Applications are shipped using a common container format and managed with a high-level API. Their processes run within isolated namespaces that abstract the operating environment independently of the distribution, versions, network setup, and other details of this environment. This "containerization" has often been nicknamed "the new virtualization." But containers are more than lightweight virtual machines. Beyond their small...