By Rich Bourdeau
In Part 2 of the DynamicOps?s Private Cloud ROI series we discussed how the automated service delivery capabilities of DynamicOps? Operations Virtualization? platform improved operational efficiency. ?Operational efficiency is typically one of the initial motivations for deploying a dynamic, on-demand private cloud infrastructure.? However, if you were to ask our customers, with a 
year or more of deployment experience, what their biggest benefit was, their response would likely be improved service delivery times that enable greater productivity or allow the business to address new opportunities quicker than the competition.
Keeping up with the accelerating pace of your business
Getting compute resources into the hands of the?business users enables companies to access new business opportunities. ?For companies who rely on IT systems to differentiate their business, DynamicOps Cloud Automation Center allows companies to dramatically shorten the delivery time of initial?provisioning as well as ongoing provisioning changes from days to hours and minutes.????
When developing a business case for deploying a flexible private cloud infrastructure, many companies overlook IT responsiveness to the business needs because it tends to be more subjective and much harder to quantify than operational or capital savings.? ?It?s not that improved business agility cannot be quantified; it?s just that it tends to defy a standard formula, because it is usually business and even company specific. In addition, it?s always harder to justify lost opportunity costs of not being able to expand as quickly or take on new business.?
For these reasons, the business agility that results from reduction in service delivery times is not included in a lot of private cloud business justifications.? The good news is that operational and capital savings alone are more than enough to justify deploying your private cloud infrastructure. Even if you cannot quantify the value of improved service delivery, you need to include its benefits in your Private Cloud ROI business justifications.? Here are a few examples that can help you better understand and maybe even quantify the value of quicker IT service delivery. ?
Improve Business Productivity
Improvements in business productivity are one area that you should explore when building your private cloud business justification. One company with a stalled virtual desktop deployment project confided in me that 3-4 days was not uncommon to provision a new machine once they started the process. However the real challenge was that 
they had so many requests for new machines that they often sat in the queue for multiple weeks before they had the resources to even start the process.??? New employees waited an average of three days before they could get a new virtual desktop with the software required to perform their jobs.?
With DynamicOps, they were able to get a new desktop in the hands of their users in a few hours. Every day of improved productivity represented $350 per person.? That may not sound like much, but when you have tens of thousands of employees and a 10% annual turnover rate, this company saved almost $700,000 per year in improved productivity for every 1,000 new employees they provisioned.? ???Even if you can?t quantify the improvement in productivity, you absolutely need to include the qualitative benefits in your business justification.?
Enable New Business Opportunities
If IT systems not only enable your business but are also fundamental to the delivery of your products or services, your ability to rapidly provide or reconfigure compute resources can directly translate to 
the bottom line success of your company.????? In these tough economic times, the struggles of some companies represent opportunities for others, provided that they have the compute capacity to address the increased business.? For one of our customers, their private cloud infrastructure not only allowed them to provision systems faster, it also allowed them to rapidly repurpose compute resources to handle the increase computing demands of the additional business.? While improved business agility was not part of their initial Private Cloud ROI justification, it was the primary reason for the company?s expansion of its private cloud initiative to other business units within the company.
Justifying an increase in business due to a more flexible infrastructure is always the most difficult thing to do, because the gains can be subjective.? What can be useful is to look back at how shortening the provisioning times have allowed your company to expand in the business in the past.? If you don?t have a private cloud pilot to draw upon, look back at how virtualization may have enabled new business opportunities.?? Virtualization has allowed most companies to shorten their provisioning times from weeks to days.? Private Cloud automation, governance and control further reduce provisioning times to hours and even minutes.? What effect can that have on your business?? More importantly what is the risk of ignoring private cloud infrastructures and have more agile competitors take business from you?
Interested in getting started developing your Private Cloud ROI, then check out some of our ROI whitepapers ?or what some of our customers are saying in the customer case studies on our web site.? Need help deploying your private cloud infrastructure or developing your business justification? Then contact us for help.?
Next in our Private Cloud ROI series is the savings associated with elimination of unauthorized usage and over provisioning.
Source: http://blog.dynamicops.com/?p=632
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