As an IT leader, your organization was once mostly regarded as providers of technology. But now you and your team are being called upon to not only drive efficiencies and performance improvements, but also transform business functions enterprise-wide. All this while you also face demands from the business to prove the ROI of IT investments.

The rapidly evolving IT landscape demands a nimble and adaptable organization. This may sound like a quick change, but it is not. This is a marathon over shifting terrain. On-premises clouds are a vital element of this transformation. And you can ensure success by running your on-premises cloud like a business.

To justify any on-premises cloud initiative, you must have accurate insights into your existing IT costs and consumption.

Baseline your current cost and quality of service

Your baseline will be your starting line, and finding your way to it will get you ready for the marathon. You will need to justify any on-premises cloud initiative, and this begins by accurately determining your existing IT costs and consumption metrics.

Benchmark against third-party cloud vendors and outsourcing options, and ask the question, “Are we investing too much in one area, and too little in another?” These will be your initial focus points and establish your baseline.

How what ifs” and scenario planning can help

Analytics geared toward “what ifs” and scenario planning can help tease out additional concerns regarding security, internal costs and investments, open source technology needs, etc. You want to be able to cost out your internal IT products and services, and find the areas where the cloud can help. The success of the transition to an on-premises cloud will be measured in ROI that ensure projected cost savings are realized.

This process improves transparency and helps IT:

  • Provide visibility into cost and utilization of existing applications and underlying infrastructure.
  • Identify technology stacks and workloads with utilization profiles that are best aligned for cloud computing usage.
  • Establish breakeven point for investment in cloud migration.
  • Choose which cloud provider has the lowest one, three and five year TCO.  

You’re already at the starting blocks and looking at the track ahead. Download Apptio's Seven practical steps to help you run your on-premises cloud like a business whitepaper, to give you what you need to reach the finish line.