2. Metrics That Matter—What You Need to Know

This chapter introduces the following topics:

Business Value Measurements

Indirect and Direct Metrics

Total Cost of Ownership

In this chapter, we focus on understanding total cost of ownership (TCO) and other key performance indicators for business and IT. After revisiting the IT supply chain analogy, we establish a framework for measuring the financial value of critical components in an IT system. This baseline will allow us to use capital planning and budgeting tools to estimate the business value of moving IT services to a cloud computing platform.

Business Value Measurements

In this section, we examine the process of measuring the business value of IT. While it is relatively easy to measure ...

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