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Cloud has ROI, but we can't measure it yet: survey

By | May 10, 2011, 9:36am PDT

Summary: Open Group survey: When it comes to cloud, bring it on — but not too fast, enterprises say.

A majority of cloud proponents within organizations believe cloud computing is easy to evaluate and justify. However, most do not have the means yet to measure any potential ROI.

Such is the state of internal cloud computing, as documented in The Open Group’s latest cloud computing survey, covering 307 companies around the globe. The group found 91% of respondents were interested or already adopting cloud, which may represent a self-selection bias in the survey. However, what is notable is the fact that most of these cloud efforts were focused on so-called hybrid (45%) cloud projects — which represent a mix of private and public cloud services — or purely private clouds (29%).

Return on investment was another hot-button explored in the survey. A majority, 55%, said it would be “easy” to evaluate and justify cloud-oriented projects, versus 45% who saw difficulties. However, capturing ROI metrics is another story — only 35% of respondents say their organizations currently have an ROI mechanism in place.

Favored metrics associated with cloud ROI include cost (29%), quality of delivered result (21%), speed of operation (15%), and utilization of resources (15%).

What are the biggest concerns about cloud? Security tops the list (18%), followed by integration issues (15%)
and governance (14%).

The question on the impact of cloud also produced some interesting results. While 82% said that they expected their cloud initiatives to have significant impact on one or more business processes, only 28% said that they were prepared for these changes.

As Dr. Chris Harding, forum director for The Open Group Cloud Computing Work Group put it:

“The survey shows that users recognize that cloud computing will impact their business processes, but that they are not yet prepared to handle that impact or, in many cases, even to measure it.”

So, bring it on, but not too fast.

(Slides with survey data can be downloaded from The Open Group site — registration required.)

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Joe McKendrick is an author, consultant and speaker specializing in trends and developments shaping the technology industry.

Disclosure

Joe McKendrick

Joe McKendrick is an independent consultant, editor and speaker.

Joe has performed project work (white papers, articles, blogs, research and presentations) for the following companies in the IT marketspace:

  • CBS Interactive/CNET/ZDNet (this blog)
  • ebizQ
  • Evans Data
  • Gartner
  • IBM
  • Informatica
  • IDC
  • Microsoft
  • Systinet/HP
  • Teradata
  • Unisphere Reseach, a division of Information Today, Inc.
  • WebLayers

Joe has also performed research work for the following sponsoring organizations in partnership with Unisphere Research, a division of Information Today, Inc.

  • IBM
  • Luminex
  • Noetix
  • Oracle Corp.
  • Teradata
  • Informatica
  • International Oracle Users Group
  • Oracle Applications Users Group
  • Professional Association for SQL Server
  • International DB2 Users Group
  • International Sybase Users Group
  • SHARE (IBM large systems users group)

Biography

Joe McKendrick

Joe McKendrick is an author and independent analyst who tracks the impact of information technology on management and markets. Joe is co-author, along with 16 leading industry leaders and thinkers, of the SOA Manifesto, which outlines the values and guiding principles of service orientation. He also speaks frequently on Enterprise 2.0 and SOA topics at industry events and Webcasts, and serves on the program committee for this year's SOA & Cloud Symposium in London. As an independent analyst, he has also authored numerous research reports in partnership with Unisphere Research, a division of Information Today, Inc. for user groups such as SHARE, Oracle Applications Users Group, and International DB2 Users Group. In a previous life, Joe served as director of the Administrative Management Society (AMS), an international professional association dedicated to advancing knowledge within the IT and business management fields. He is a graduate of Temple University.

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