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Wajdi Alkayal
HOW TO MEASURE CLOUD SUCCESS ACROSS ORGANIZATION
BY:WMK-IT
Overview of Cloud Metrics
Today, businesses are adopting the cloud as part of the transformation journey to improve business agility, customer relationships while delivering operational efficiencies. However, most Organizations have no mechanism to measure the effectiveness of Cloud Adoption. Also, there exists very little guidance on the measurement of Cloud adoption effectiveness within the organization. Most Organizations focus on the definition and Completeness of the Cloud adoption and Maturity of Cloud development processes rather than the effectiveness of Cloud adoption measurement.
To ensure that Cloud adoption is progressing well, and is also adding value to the Organization, there is a need to define metrics for measuring the effectiveness it, which is mostly done by the Cloud Center of Excellence (CCOE) of the organization. However, Cloud metrics is still an emerging field and there are no defined standards. Cost, Time to Market, ROI, Technology are the prominent areas that determine which Workloads should be moved to the cloud.
A Cloud Center of Excellence (CCOE) is a cross-functional team that leads cloud Go-No-Go, Cloud Migration, Cloud Adoption, and Cloud operations within the organization. The CCOE is responsible for developing and managing the cloud strategy, governance, and best practices that the rest of the organization can leverage to transform the business using the cloud.
Why Measure Cloud Metrics
Traditionally, CCOE has been measured on the immediate benefits that it provides to the organization. Although CCOE has a significant impact on how the IT organization aligns with Business if CCOE Metrics are only limited to measuring Business-IT alignment, they would fail to measure the long-term impact of Cloud adoption and more importantly its impact on business as an enabler and catalyst of change.
Based on the author’s interactions with various customers, the following are the practical challenges that we encountered in measuring the effectiveness of Cloud Adoption:
- The effectiveness of Cloud adoption is rarely assessed
- No established Industry Standard Metrics for measuring Cloud effectiveness
- Cloud Adoption Context significantly differs between the Organisations
- Different stakeholders have different perceptions of Cloud adoption
- Most Cloud metrics aim to measure Cloud value in IT terms; Not in business terms
- Measurement data concerning Cloud adoption often does not exist within the organization
- Objectives of Cloud adoption change during the implementation path
- Most employees belonging to the Organization do not know about the Cloud initiative
Cloud Metrics not only helps in gauging the long-term impact of Cloud adoption by an organization but also helps in measuring the true value of Cloud which will enable the Organization to plan more effectively and efficiently.
Measuring Cloud metrics is necessary to,
- Switch away from a Capex Intensive model to a Subscription model
- Adopt a utility model and on-demand consumption vs one-time investment
- Free up resources from mundane technology activities to roles that contribute more value to the business
- TCO reduction
- Improved ability to seize new business opportunities
- Improved business agility
The Cloud adoption success measurement should,
- Increase in Revenue Margin
- Better ROI
- Quality of User experience
- Elastic scaling cost improvements
- Level of automation
- Transaction latency and throughput
- Open source adoption
For the Cloud adoption program to be successful, it needs to be periodically monitored and measured with respect to a set of defined Cloud Metrics. The status of these metrics can be captured, presented, and communicated effectively using Cloud adoption scorecards or dashboards to the Cloud Governing body.
Types of Cloud Metrics
Cloud adoption Metrics estimate the progress of Cloud COE during the early stages of Cloud adoption. It also helps in recognizing the efficiency and effectiveness of Cloud COE to ensure that the true value of Cloud is delivered to the business.
For the Cloud COE to be successful, it needs to be periodically monitored and measured with respect to a set of defined Cloud Adoption Metrics. The status of these metrics can be captured, presented, and communicated effectively to Organization Steering Committee at regular intervals. The most commonly used Cloud adoption metrics for an Organization are defined in the table below. These Metrics are classified as,
- Customer Metrics
- Financial Metrics
- Technology Metrics
- Process Metrics
- Governance Metrics
CONCLUSION
To ensure that Cloud adoption is progressing well, and is also adding value to the organization, there is a need to define metrics for measuring the progress and performance of Cloud adoption.
The Cloud adoption metrics are defined in terms of effectiveness, agility, and alignment to business goals and strategies. Once Cloud adoption is properly implemented and business entities are engaged, it will improve the overall planning activities of the organization and not just IT.
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