Cloud computing has been around long enough – and established itself well enough – for most organizations to move beyond the initial question of “is cloud computing just a fad?” to “will we save money by moving to the cloud?”
To answer that second question, it’s important to carefully consider a number of direct and indirect factors that affect cloud migration. Direct factors include things such as hardware and software costs, licensing, network infrastructure and labor. Indirect factors are a little more fuzzy because they cover such “soft” issues as operational efficiency, productivity, compliance and business continuity risk, even the capex value of potential future purchases that will be avoided by moving to the cloud. Savings can go far beyond simply the value of all the IT stuff you no longer will have to purchase and maintain.