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Cloud Readiness Assessment – Planning your Cloud TEI (Total Economic Impact)

cbpn-logo3Our objective here at the Canada Cloud Network is to build a local forum for innovating global Cloud best practices.

For example over here at Sheepdog our goal is to build one of Canada’s premier brands for expert Cloud consulting.

Central to this is development of the ‘Cloud Readiness Assessment’, a standardized process for helping your business understand where and how it could best exploit the trends of Cloud computing.

Total Economic Impact

The framework for planning the Cloud migration business case can be defined in terms that Forrester Consulting calls ‘Total Economic Impact’ (TEI).

Recently Google commissioned Forrester Research to identify the TEI (Total Economic Impact) of moving to Google Apps, polling around 600 mid-sized firms about their collaboration plans.

download_pdf2Download the report here:  The Google Apps TEI Report from Forrester Research, used to to plan the ROI of moving from a legacy messaging and collaboration platform to Google Apps. They describe how organizations have enjoyed a business improvement including:

  • Break even within 1.4 months
  • 329% risk-adjusted ROI
  • A Net Present Value of over $10m following an investment of $400k

roadmap-1Planning your Cloud Roadmap – Cloud Readiness Assessment

A Cloud Readiness Assessment is a consulting engagement that analyzes your organization and its business requirements, and maps these to a Cloud strategy.

An ‘economic impact’ review is a great way to frame this exercise, so you can be clear about how the ROI will b e achieved, and importantly you can test for organizational needs through testing for your ‘readiness’ for Cloud services in different areas:

  • Virtualization and business continuity
  • Desktop and IT operations
  • Unified Communications and staff productivity

The exercise can include some very specific auditing work – For example an assessment of your Microsoft Office licencing situation. In some cases customers find they are paying for versions they aren’t using, in one case yielding $2.5m in annual savings.

If this is then followed by the additional cost savings and productivity benefits that Forrester describe, it’s clear how straight forward it is to plan a successful ROI from a Cloud migration.

The objective of the Canada Cloud Roadmap is to help flesh out the detail of  a number of these journeys. Desktop office software is but one of many scenarios where the same principle and process can be repeated.

With each of these different functional areas having their own self-contained TEI, then it’s possible to cherry pick just one or a combination of them, to assemble the Roadmap that best suits your organization.


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