Information Technology & the CIO: Volume III by John Nicolay

Author:John Nicolay
Language: eng
Format: azw3
Publisher: Lawrence Washington Press
Published: 2017-08-14T07:00:00+00:00

The chances of companies and other businesses being “cloud washed” as they long to adopt cloud computing is a potential risk in adopting cloud. Since companies are continuously coming up with a smart way of upgrading or repackaging past programs so that its partially installed and have parts online and as a software rental licensing model. Vaughan-Nichols (2016) sites Oracle and Adobe Creative Cloud as a good example for this practice. He touts the rapid expansion and elasticity of cloud computing which facilitates the sharing of organizational computing resources and hence saves money that could have been invested in other hardware and resources. Applying the multi-tenant model while utilizing different physical and virtual resources that are suited to meet customer needs makes cloud computing worth the while and ROI.

To measure the ROI in Cloud computing, several considerations should be considered, which include the labor that goes into the redesign of the applications that needs to be run on the cloud platform, cost per unit of computing power and time. (Selig et. al, 2015). Because you pay for what you use with Cloud Computing, it is easy to scale up or down which frees up capital and creates significant ROI.

Unlike enterprise resource planning (ERP) applications which are costly hence lowering the ROI of many organizations, the cloud is easy to run and user-friendly. It is equally cheap since it does not call for maintenance costs. Cloud computing thus is a promising innovation that is likely to be used for many years to come. If only CIOs can keenly understand the cloud, then they are likely to win big in improving their ROI.

Additional References Microsoft Azure. (2017). What is cloud computing? A beginner's guide | Microsoft Azure. Retrieved July 03, 2017, from https://azure.microsoft.com/en-us/overview/what-iscloud-computing/

Selig, A., Reed, K., Shepherd, J., & Cassidy, R. (2015, December 15). Understanding Cloud ROI. Retrieved July 04, 2017, from https://blog.rackspace.com/understanding-cloud-roi Romes, R. (2013, May 8). The Benefits and Risks of Cloud Computing. Retrieved June 30, 2017, from http://www.claconnect.com/resources/articles/the-benefits-and-risks-ofcloud-computing.

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