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Assessing Cloud Payback: Saugatuck ROI Framework/Cost Benefit Model
Saugatuck Technology, Dec 2011, Pages: 5
Saugatuck has developed a framework to assist clients in envisioning and developing useful, relevant models for cost comparison/ROI assessment of Cloud-based solutions versus more traditional on-premises software deploy-ments. As with almost all ROI framework/models, this model is relatively static, and does not directly take into account various dynamic cost factors, including:
- Flexibility: What types of business and IT flexibility does the Cloud solution in question enable, at what cost, and how do these affect the situation under consideration?
- Provider changes over time: How will specific providers’ solutions, technologies, service levels, and licensing/subscription costs vary over the time period under consideration?
- Opportunity Cost and Time Value of Money: How will the benefits/returns on investments in specific solutions compare with alternative investments, at different rates of interest/costs of investment, over time?
- As with any ROI framework or model, the assumptions must be adapted and adjusted to fit specific client situations.
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