Making theBusiness Case for

Private Cloud

What’s Inside:

This PowerPoint template will walk you through putting together the numbers you need to make a business case for a Private Cloud in your organization

The accompanying Excel Calculator is designed for simplicity:

It befits a feasibility-level study; more complex analyses would require a more robust model

It is based on cash flow, not P&L

It has no macros

All data and assumptions are to be entered on one tab, the other tabs are for display only

Show Current State

1. Input current state data

Simply enter in values in the green boxes

The fields in yellow will be calculated by the model

Missing Data?

1A: What if I you don’t have all the data?

You probably don’t, so the model will calculate the data you do have and, if you know the figure is wrong, you can correct it by entering an “override” value

ShowProject Costs

2. Enter the project costs and discount rate

Estimate costs based on prior experience, market scan, or vendors’ indicative pricing

Discount rate can be usually obtained from CFO group

ShowTarget State

3. Enter in target state benefits by year

It is best to start with the last year, then back into how much of that benefit you’re likely to achieve by the end of each intervening year

Customizethe Presentation

4. Customize the PowerPoint to fit your needs

Review the numbers in your completed Excel spreadsheet then cut and paste the exhibits into this PowerPoint presentation

Follow the format of presenting the current state, project costs, target state and investment analysis

Document the Risks

5. Include Risks of a Private Cloud

Projected oversubscription rate might not be realized

Implementation timeline might be too aggressive to maintain

Incremental virtualization targets might not be reached

Deep personnel cuts might lead to bad press, post-action discovery of previously unknown employee lock-in cases, or possibly sabotage

Make it Work

6. If you don’t like the answer, just change the assumptions

You can always go back and change:

Target state reduction projections and the forecast speed to attainment

Number of concurrent and enablement projects

The discount rate you’ll receive

Created by William Freedman @ITCaseMaker

& Tom’s IT Pro @TomsITPro