3 key factors missing from your cloud business case

You want to justify some IT spending for cloud-based platforms. Your CEO or board has asked for a business case, and you’ve been scrambling to create one. Of course, you’ll include obvious items like capex versus opex. However, most business cases miss three important concepts:

1. The value of agility

Yes, again. The problem with agility in a business case is that it’s hard to define, as well as hard to assign a dollar figure. Agility rarely gets into cloud business cases.

But agility should always be considered in a cloud business case, even if in the abstract. If you can┬áscale a server cluster in seconds without driving hardware and software buying cycles, what is that worth to the business? In most cases, I suspect it’s worth a lot.

2. The cost of people

Yes, the obvious people costs are included in cloud business cases, but many enterprises’ talent pools lack the skills that need to be factored into the business case. Because of this unfamiliarity with the skills necessary to build and maintain a cloud deployment, they miscalculate required resources. For example, you might estimate it will take 10 people to monitor and manage systems on public clouds, though it could easily be twice that amount.