Blog

Wednesday 30th October 2019
by Maria Griffin

Maria Griffin

3 reasons cloud can improve your ROI

Many organisations have already addressed digital transformation with the move of applications to the cloud to create IT efficiencies. The most common of these is email with the adoption of Office 365. They have done so because they have been convinced of the benefits moving to the cloud brings. One of those is improved ROI. So how does the cloud improve your ROI?

Return on Investment

ROI is the relational increase in the value of an investment over a period of time. It can be measured in a number of ways, but there really are just four ways to improve your ROI:

  • Reduce investment
  • Decrease costs
  • Increase revenue
  • Speed of implementation/timing

Using cloud computing, you can achieve these; but you are unlikely to achieve them all at the same time. With public cloud, you generally decrease investment but increase cost. With private cloud, you reduce cost but increase investment. You can improve or disimprove your ROI either way, depending on your revenue and speed of return.

Looking at moving to the cloud just from a technical perspective can mean you are missing the bigger picture. The impact the cloud can have on the business can improve the value your business provides. This can be in relation to value to customers, employees or shareholders.

improve your roi

So how does cloud computing contribute to your ROI?

There are a number of drivers that impact on investment, cost, revenue and timing that can be positively influenced by using cloud computing. These are related to productivity, speed and quality.

  1. Productivity

In many organisations, servers are dedicated to specific functions or departments and can be under-used. Frequently, departments get new servers for new projects, even though other departments’ servers have capacity. Cloud computing enables resources to be shared by different loads.

Additionally, moving applications to the cloud means that these are available from wherever your employees need them; home, train or office, making them even more productive.

  1. Speed

Cloud computing enables organisations to acquire the resources and data needed faster. And, it can dramatically cut the time to deployment of new products and services.

If a disaster occurs such as a ransomware attack and you have cloud based back-up and disaster recovery services, then you can be back up and running much quicker than with traditional back up solutions.

  1. Quality: Improved margins from better service

Efficiencies resulting from better use of assets and faster operation deliver lower costs resulting in a bigger margin and increased profit. Usage-based pricing means that you pay for only what you use and you can grow as your company and your data requirements grow.

A cloud provider or partner can be better at providing IT services than a small IT department. And it spreads the costs over a large user base: the problems experienced by one user can be proactively fixed for others once they have been solved.

Talk to Trilogy to learn more and help you decide how best to use the cloud, and whether to go the way of private, public or hybrid cloud.

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