3. Sample Case Studies—Applied Metrics

In this chapter, we review the three most common direct metrics (net present value, return on investment, and payback), and apply each metric to three examples of investments in cloud computing and service models:

Software licensing: Software as a Service (SaaS)

Disaster recovery and high availability: Infrastructure as a Service (IaaS)

New application development and deployment: Platform as a Service (PaaS)

To establish a working baseline for each of these scenarios, we first need to establish the total cost of ownership (TCO).

Total Cost of Ownership

As we saw in the previous chapter, understanding the TCO of a solution or an environment is a critical precedent for measuring improvements in cost ...

Get The Economics of Cloud Computing: An Overview For Decision Makers now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.