Developing a Cloud Business Case

A 10-year TCO comparison with on-premises infrastructure ignores the difference between capital expenditures for depreciated physical assets and annual operational subscriptions for cloud

Description

Writing a cloud business case can be difficult. Many organizations want to see a 10-year TCO comparison with the equivalent on-premises infrastructure. This ignores the fundamental difference between one-time capital expenditures for depreciated physical assets and ongoing operational expenses for annual subscriptions.

Cloud services are also evolving constantly, so anything longer than three years is fiction. After three years you will be forced to use a constant cost or one that increases with inflation; whereas real cloud prices could be going down. Fiction.

Conversely, while using the cloud is usually gross less expensive it can be net more expensive over the longer term. This is because of the loss of tax advantage in depreciation. For this reason, on larger cloud projects, you may still need a 10-year TCO and the services of an accountant to help with the calculations.

Learn how to manage these issues and others in an effective business case that demonstrates business value. A business case should be as succinct as possible, so don’t feel that you need to include every topic described in this course.

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