Cloud computing is not one size fits all. That said, performance, network bandwidth, security, and total cost concerns can be allayed through a better portfolio and investment approach that considers the multitude of options available.

For companies with limited working capital resource or cash flow funds, the use of on-demand services becomes an attractive option for consumers to avoid upfront costs or maintenance of services. Likewise, companies seeking to provide better profitability from their operation and vendors managing their cost center can leverage on-demand models to target areas of their portfolio to reduce cost and maximize return.

When adopting cloud computing, companies are often driven by cost effectiveness, rather than looking at the bigger picture and asking what cloud solution is the best fit for the business. Cost savings, longevity of product, and performance aren’t mutually exclusive, and all should be factored into the decision-making process when researching and purchasing a cloud solution.

Here are four questions, which include key metrics and drivers, to ask when researching cloud solutions that will maximize the value of cloud computing for your organization:

  1. Why is investment being spent on areas of IT that are not differentiating your business and can be commoditized?
    • Key Metric: The balance of percent of investment on non-core commodity IT
    • Key drivers: TCO needs to consider where to focus IT investment
  2. How can IT grow and adapt with the ever-increasing expansion of data storage and the growth of computing demands eclipsing on-premise facilities?
    • Key Metric: The cost of storage and archiving , recovery and continuity
    • Key drivers: Latency of network and storage costs can be targeted through considering the whole IT portfolio, not just niche use cases of cost-performance. Look at the bigger picture.
  3. How can access to new markets and new channels be better served through extending networks and partnerships?
    • Key Metric: Size of markets and effectiveness of sales channels, both internal sales and external direct sales and reselling
    • Key drivers: Total cost of acquisition can include the creation or use of third-party distributed marketplaces and self-service portals and platforms
  4. Is your own IT fast enough to beat your competition or drive the cost savings or revenue and margin growth plans you need?
    • Key metric: Speed of IT delivery and its cost and quality of service.
    • Key drivers: Performance can be offered through selected service provisioning. Question whether all knowledge needs to be in-house. Skills can be as-a-service too.

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