SaaSBuzz.com - Mobile SaaS, Cloud Apps and SaaS News» economic analyses http://www.saasbuzz.com Fri, 03 Sep 2010 20:39:44 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 A Better Metric for Analyzing the Value of the Cloud – SaaSBuzz.com http://www.saasbuzz.com/2009/11/a-better-metric-for-analyzing-the-value-of-the-cloud-saasbuzz-com/ http://www.saasbuzz.com/2009/11/a-better-metric-for-analyzing-the-value-of-the-cloud-saasbuzz-com/#comments Thu, 19 Nov 2009 17:13:16 +0000 admin http://www.saasbuzz.com/?p=180

A Better Metric for Analyzing the Value of the

While you may be reading and hearing about positive financial and the regarding the benefits of , those analyses are based on unrealistic total (TCO), return on investment (ROI) and misinterpreted CapEx/OpEx calculations. Indeed, these calculations are missing a complete understanding for the value of the in the IT service delivery equation, which is why comparing alternatives requires a modern metric that fully understands the .

In my opinion, no two metrics were more injurious to the IT field than TCO and ROI. I have yet to meet one senior executive with budgetary responsibility that has accurately tied investment in IT back to a sizable gain or to represent a true TCO. Let’s face it; these are notional concepts at best that were devised to be manipulated to provide IT executives with justifications for funding projects of questionable value to the business.

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