Seems like a return after a fairly long break! Well, I am back and the world seems to have moved on to better and bigger things? Well, that’s good so now there’s more to blog about? Or perhaps it’s the same wine in all newly packaged bottles. The discussion still hovering around the clouds! Considering the ash clouds causing mayhem, this seems to be timely. Yes, it’s back to the clouds… yet again. One interesting question that Dubie bring up in her newsletter is: What is the TCO of cloud services? Really, what is the real TCO of cloud services to your customer?
Apptio seems to have run some numbers to figure TCC (total cost of the cloud) by creating transparency templates and delivered integrated cloud cost analysis. So what are the metrics needed to calculate the ‘right’ TCO and ROI from the cloud?
They boast of a hosted visual application that models an environment by taking data from spreadsheets, GL systems and other sources to map the relationships between services and the cost thereof. Analytics can be applied to test the ‘what if’ scenarios to the core. Now you can intelligently estimate the fully loaded cost of a server, or a desktop server. You think I am kidding? Check out:http://www.apptio.com/products/service-costing.php.
So be it service quality and utilization, IT benchmarking or platform related questions this tool answers it all.
Some of the key questions answered by this tool:
- Client Services: What is the TCO of a laptop vs. a desktop? Which hardware brands are most cost effective? What is the TCO of extending upgrade cycles weighing support and maintenance vs. capital spend?
- Shared Services: Which OS/hardware combinations have the lowest TCO in the data center? What is the financial impact of moving Tier 1 support to a low cost geography? What is the TCO of Tier 1 vs. Tier 2 vs. Tier 3 storage? What cost saving can be obtained by moving archived storage to Amazon?
- Business Services: Which applications are the most expensive? Which applications have application support as the top cost driver? Do we have the right service level cost investment per application? What are the cost savings of moving email to the cloud?
- Portfolio: What is the total capex to opex ratio? What is the fixed to variable ratio of IT spend? What is my proportion of investment in run the business vs. change the business?