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IDC PlanScape: Building the Business Case for the Cloud Transition Strategy

IDC PlanScape: Building the Business Case for the Cloud Transition Strategy

This IDC study discusses aspects of building a business case for the cloud transition strategy."Building any business case is the combination of science and art. This study focuses on the science side. It's a framework detailing the building blocks for building the business case. In general, the most critical issue in developing a business case and for building a cloud transition strategy is stakeholder involvement. Building a very detailed model with a lot of assumptions is hard analytical work, but not sufficient. It's just not effective enough. A business case and its assumptions need to be developed in collaboration with the real stakeholders affected by the suggested change. If done correctly, the business case is actually the most important tool for the management team responsible for executing the cloud transition strategy. Ownership and accountability are more important than precision and details. Being approximately right is better than being exactly wrong." — Erik Berggren, vice president, Cloud Transition Strategies, IDC's IT Executive Program

IDC PlanScape Figure
Executive Summary
Why Is the Business Case for the Cloud Transition Strategy Important?
What Is the Business Case for the Cloud Transition Strategy?
Strategic Arguments
Financial Arguments
Who Are the Key Stakeholders?
How Can My Organization Take Advantage of Building the Business Case for Cloud Transition Strategy?
Return on Investment
Total Cost of Ownership
One-Time Versus Transitional Costs for Cloud Transition Strategy Execution
Cost of Delay
Shadow Budget
Sunk Cost
Risk Assessment
Essential Guidance
Immediately: Before the New Budget Cycle (6–12 Months)
Short Term: After the Next Budget Cycle (12–24 Months)
Long Term (Two Years and Out)
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