When you're making a business decision, having the wrong argument can be worse than having no argument at all. There are a lot of ways migration to the cloud can help an organization increase efficiencies, but focusing on the wrong benefits won't help. When it comes to the ROI of the cloud, here are a few capabilities you don't want to focus on, followed by three that you do.
1. It’s Green
Sure, you can reduce your carbon footprint by reducing the electricity costs of running your servers, and you might save a bit more by not needing a climate controlled room for them. But for most organizations, reduced power consumption isn't typically a big enough opportunity. It is a tangible benefit, but don't lead with it.
2. Space Saving
Are you in real estate or IT? The benefit that migrating to the cloud will free up floor or office space is not one of the main benefits of migrating to the cloud. The space it saves most businesses is simply too small to make a significant impact.
3. Reduced Resources
The cloud can reduce hardware and software costs for your company, and your service provider handles the maintenance, but you may not be able to reduce staff. Instead, consider the productivity gains your company will achieve once your staff is freed from maintenance and can focus on technologies that will help them do their jobs more effectively.
Moving to the cloud can give your employees new tools for collaboration, but that’s not always crucial for all businesses. The cloud does allow employees to work from various work settings and remote locations, which can increase productivity and efficiency.
Cloud ROI: CONSIDER THESE 3 ADVANTAGES INSTEAD
If you're not supposed to focus on the four topics above, what are you supposed to pay attention to? These three topics are at the heart of cloud ROI because of how much impact they can have on your business as a whole:
Risk Management – When it comes to the cloud, your service provider takes care of your servers and network issues. If issues should arise - like failed servers or out-of-date software - they will be able to step in and find a solution. The risk is no longer your responsibility.
Capital Investments – Buying new software and hardware (and keeping them updated) is a typical business IT cost. The cloud takes away these substantial, ongoing costs.
Growth – The term ‘scalability’ is important for changing and growing businesses. Migrating to the cloud gives you the ability to expand your network at the click of a button.
When you’re talking benefits of cloud computing, be sure you keep your focus on areas that provide the most ROI.