VOCR

• Value
• Outcomes
• Costs
• Risks

Assess VOCR when:

• Defining digital strategy
• Assessing cloud services
• Defining requirements
• Evaluating CSP proposals

1. Outcome

Typical outcomes:

• Cost savings
• New markets
• New products
• Greater agility

Undesirable outcomes:

• Increased costs
• Uncontrolled resource use
• Poor governance
• Poorly-coordinated cloud
• Inappropriate migrations

2. Costs

Understand costs go gauge ROI

Assess costs before engaging CSP

Multiple information sources available

CSPs make costs public

Use CSP cost management tools

Five cost types:

• Exploring cloud services
• Onboarding and offboarding
• Co-creation
• Under and over-utilization
• Outages

2.1 Exploring cloud services

Analysis and strategic assessment:

• Analyze business model and infrastructure
• Identify cloud options
• Evaluate opportunities

Organizational change:

• Assess costs of organizational change
• Objective greater agility
• Cloud costs included in larger change strategy

2.2 Onboarding and offboarding

Cost of implementing new or migrating services

Costs incurred by:

• Service provider
• Service consumer

Onboarding costs:

Organization and people Expanding IT department to cloud service broker Vendor management office CSP coordination Training Information and technology Cloud migration costs API creation Application and data migration Targets and testing Equipment and license disposal

• Partners and suppliers
  • Contract termination
  • Establishing new provider
• Value streams and processes
  • Process re-engineering
  • Replacement and decommissioning costs

2.3 Co-creation

Costs of ongoing cloud usage

Incurred over years

Costs sources:

• CapEx/OpEx
• PaaS and SaaS applications
• In-house equipment
• APIs
• Cloud management office
• Upgrades
• Operational management
• Disaster recovery, service continuity and security
• Staffing and consulting
• Governance
• Start-up costs
• Onboarding

Cloud shifts expenditure from CapEx to OpEx due to pay-per-use

End-user accounting

Finance department oversight

Fixed prices not common due to dynamic market pricing

Consumer must monitor costs

CSP budgeting tools and alerts

2.4 Under and over-utilization

Contracts may specify certain usage

Under and over-utilization penalties

Advanced notice

Utilization rate forecasts

2.5 Outages

Who is responsible for what aspect of outage ?

Service agreement terms

Loss protection and service continuity

Service outage penalties

Compare outage costs and high-availability architecture

Review outage history

Select reliable CPS

Go back to ITIL 4 Acquiring Managing Cloud Services Certification Course: Explore to finish this chapter or to the main page ITIL 4 Acquiring Managing Cloud Services Certification Course.