The document discusses how to maximize return on investment (ROI) with cloud computing. It covers how the cloud enables first mover advantage, key performance indicators to measure ROI, and how a flexible deployment model maximizes ROI. The presentation provides frameworks for justifying cloud adoption from a business case perspective and calculates ROI using quantitative and qualitative benefits. It emphasizes using a hybrid model to deploy workloads in environments that provide the highest ROI.

1. The Cloud is “Making it Rain”!
How to Maximize ROI with Cloud Computing
Presented By:
Rackspace Enterprise
Cloud Solutions
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2. Your Hosts
Rafat Shaheen Stacy Williams
Sr.IT Strategist Rackspace Director of
Rackspace Enterprise Production Support
Cloud Solutions
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3. What We Will Cover Today
 How does cloud enable first mover advantage to maximize profits?
 What are the Key Performance Indicators (KPIs) to measure your
Return on Cloud?
 Why does a flexible deployment model maximize your cloud ROI?
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4. A New Way of Thinking
Virtualization is a TECHNOLOGY …
Cloud Computing is a
BUSINESS MODEL
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5. The Right Way to Think About Cloud Adoption
COST
ONLY
BUSINESS
BENEFIT
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6. ROI: Different Points of View
WHAT I CARE ABOUT…
BOARD
• Competitiveness
• Brand CIO
• Market Capitalization • IT Budget
• Project Success
• Justify Resources
CEO / CFO
• Financial Reports
• Cash Flow
• Competition IT MANAGERS
• Total Cost of Ownership
• Project Costs, Risks,
Value
BIZ UNIT EXECS • Key IT Metrics
• Business Revenue
• Improving Productivity
• Key Business Metrics
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7. What Is Your Cost of NOT Going to CLOUD?
HARD SOFT
COSTS COSTS
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8. Cost of Capital & Cash Flow
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9. CIOs are Fueling the Innovation Engine
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10. The CAPEX Financial Model
CAPEX PROJECT BEEF JERKY
Expenditure
FIXED Capacity
Approvals
CAPACITY
Provisioning
Testing
1 2 3 4 5 6 7 8 9 10 11 12
TIME
LAUNCH
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11. The CAPEX Financial Model
CAPEX PROJECT BEEF JERKY
Expenditure
Under Provisioning: Degradation of Performance
FIXED Capacity
Approvals
CAPACITY
Provisioning
Testing
Over Provisioning: Wasted Compute/Cost
1 2 3 4 5 6 7 8 9 10 11 12
TIME
LAUNCH
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12. Cloud Financial Model
CAPACITY DEMAND
1 2 3 4 5 6 7 8 9 10 11 12
LAUNCH
TIME
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13. Cloud Financial Model
DEMAND
CAPACITY
MAX
AVE USAGE
CAPACITY
MIN
1 2 3 4 5 6 7 8 9 10 11 12
LAUNCH
TIME
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14. Investigating Investment and Return
COSTS & RISKS
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15. Investigating Investment and Return
QUANTITATIVE & QUALITATIVE
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16. Project-Based
ACCOUNTING
It’s time to own your business.
“Understand your projects…
provide greater organizational health”
Have the insight to
Pull the Plug!
• Real-time ROI Assessment
• Identify Star Performers
• Flexibility to Course Correct
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17. Use Demand Patterns to Forecast and Plan
Cloud Enabled IT
• Understand characteristics &
behaviors of projects
Group A
• Group similar usage patterns
Group B • Establish assumptions &
benchmarks
Group C
• Forecast Cloud OPEX
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18. Leverage a Hybrid Model
Adaptive Deployment
Move projects to the most ROI rich environments.
Traditional IT
SERVICE PROVIDER
START HERE
DEDICATED/ MANAGED
YOUR DC CLOUD
VIRTUALIZATION
You Control MAXIMIZATON of ROI.
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19. Return On Cloud, A Framework
Justifying a Business Case
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Rackspace Proprietary Information

20. Return On Cloud, A Framework
Justifying a Business Case
Obtain Current Metrics
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Rackspace Proprietary Information

21. Return On Cloud, A Framework
Identify Workloads Justifying a Business Case
Obtain Current Metrics
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Rackspace Proprietary Information

22. Return On Cloud, A Framework
Identify Workloads Justifying a Business Case
Develop Success Criteria
Obtain Current Metrics
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Rackspace Proprietary Information

23. Return On Cloud, A Framework
Identify Workloads Justifying a Business Case
Develop Success Criteria
Cloud-Deploy Prioritized Projects Obtain Current Metrics
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Rackspace Proprietary Information

24. Return On Cloud, A Framework
Identify Workloads Justifying a Business Case
Develop Success Criteria
Cloud-Deploy Prioritized Projects Obtain Current Metrics
Decide on ROI Period/Interest Rate
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Rackspace Proprietary Information

25. Return On Cloud, A Framework
Identify Workloads Justifying a Business Case
Develop Success Criteria
Cloud-Deploy Prioritized Projects Obtain Current Metrics
Decide on ROI Period/Interest Rate
Calculate Quantifiable Benefits
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Rackspace Proprietary Information

26. Return On Cloud, A Framework
Identify Workloads Justifying a Business Case
Develop Success Criteria
Cloud-Deploy Prioritized Projects Obtain Current Metrics
Decide on ROI Period/Interest Rate
Calculate Quantifiable Benefits
Identify Qualitative Benefits
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Rackspace Proprietary Information

27. Return On Cloud, A Framework
Identify Workloads Justifying a Business Case
Develop Success Criteria
Cloud-Deploy Prioritized Projects Obtain Current Metrics
Decide on ROI Period/Interest Rate
Calculate Quantifiable Benefits
Identify Qualitative Benefits
Document KPIs and Ratios
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Rackspace Proprietary Information

28. Return On Cloud, A Framework
Identify Workloads Justifying a Business Case
Develop Success Criteria
Cloud-Deploy Prioritized Projects Obtain Current Metrics
Decide on ROI Period/Interest Rate
Calculate Quantifiable Benefits
Identify Qualitative Benefits
Document KPIs and Ratios
Financial Instruments: Calculate ROI with Supporting KPIs
TCO, NPV, IRR, Pay Back Period
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Rackspace Proprietary Information

29. Return On Cloud, A Framework
Identify Workloads Justifying a Business Case
Develop Success Criteria
Cloud-Deploy Prioritized Projects Obtain Current Metrics
Decide on ROI Period/Interest Rate
Calculate Quantifiable Benefits
Identify Qualitative Benefits
Document KPIs and Ratios
Financial Instruments: Calculate ROI with Supporting KPIs
Maximize ROI TCO, NPV, IRR, Pay Back Period
(Refine Deployment Model)
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Rackspace Proprietary Information

30. Return On Cloud, A Framework
Identify Workloads Justifying a Business Case
Develop Success Criteria
Cloud-Deploy Prioritized Projects Obtain Current Metrics
Decide on ROI Period/Interest Rate
Calculate Quantifiable Benefits
Identify Qualitative Benefits
Identify Next Project Document KPIs and Ratios
Financial Instruments: Calculate ROI with Supporting KPIs
Maximize ROI TCO, NPV, IRR, Pay Back Period
(Refine Deployment Model)
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Rackspace Proprietary Information

31. The Quantifiable Financials
Return on Investment
Rate of TCO CapEx Vs.
Reduction OpEx Savings
CapEx/Cloud OpEx/Cloud
CapEx Ratio OpEx Ratio
Supply Chain
Improved Cash Cost
Flow Reduction
Workload cost ROTA/ROCE
effeciency
NPV/Internal Pay Back
Rate of Return Period
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32. Cloud KPIs/Ratios
Return on Cloud
Productivity
Enhancement
Revenue
Improvement
Quality of
Service
Risk
Management
Agility Core
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Rackspace Proprietary Information

33. Cloud KPIs/Ratios
Return on Cloud
Transaction
Productivity Time to Market Rate of new Level of Rate of fulfilled
throughput and
Enhancement and delivery projects automation requests
latency
Revenue
Improvement
Quality of
Service
Risk
Management
Agility Core
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Rackspace Proprietary Information

34. Cloud KPIs/Ratios
Return on Cloud
Transaction
Productivity Time to Market Rate of new Level of Rate of fulfilled
throughput and
Enhancement and delivery projects automation requests
latency
Revenue Time to Improved Rate of margin Rate of revenue Revenue
Improvement profitability opportunity cost improvement growth efficiency
Quality of
Service
Risk
Management
Agility Core
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Rackspace Proprietary Information

35. Cloud KPIs/Ratios
Return on Cloud
Transaction
Productivity Time to Market Rate of new Level of Rate of fulfilled
throughput and
Enhancement and delivery projects automation requests
latency
Revenue Time to Improved Rate of margin Rate of revenue Revenue
Improvement profitability opportunity cost improvement growth efficiency
Quality of Service
Improved user Rate of labor Improved time
Service SLA error rate response
satisfaction reduction to resolution
optimization
Risk
Management
Agility Core
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Rackspace Proprietary Information

36. Cloud KPIs/Ratios
Return on Cloud
Transaction
Productivity Time to Market Rate of new Level of Rate of fulfilled
throughput and
Enhancement and delivery projects automation requests
latency
Revenue Time to Improved Rate of margin Rate of revenue Revenue
Improvement profitability opportunity cost improvement growth efficiency
Quality of Service
Improved user Rate of labor Improved time
Service SLA error rate response
satisfaction reduction to resolution
optimization
Risk Relative Business
Cost of capital Operational risk Competitive
Management compliance risk service
optimization reduction growth rate
ratio continuity
Agility Core
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Rackspace Proprietary Information

37. Cloud KPIs/Ratios
Return on Cloud
Transaction
Productivity Time to Market Rate of new Level of Rate of fulfilled
throughput and
Enhancement and delivery projects automation requests
latency
Revenue Time to Improved Rate of margin Rate of revenue Revenue
Improvement profitability opportunity cost improvement growth efficiency
Quality of Service
Improved user Rate of labor Improved time
Service SLA error rate response
satisfaction reduction to resolution
optimization
Risk Relative Business
Cost of capital Operational risk Competitive
Management compliance risk service
optimization reduction growth rate
ratio continuity
Time to deliver, Rate of new Rate of
Market Flexibility of
Agility Core implement, and products and reuse/lock in
penetration rate deployment
change services issues
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Rackspace Proprietary Information

38. ROI Supporting Tools
Partners examples
There are effective
tools available for
usage monitoring
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39. We Will Get You There…
IT Transformation Framework
Step by step approach to adopting cloud
Customer
Data Center
Design
IT Application Cloud POC Migration Solution
Evolution Profiling Readiness
Pilot Services Online
Workshop Workshop Assessment
Architecture
Migrate
Strategize & Assess Design Support & Optimize
Implement
Governance Planning & Customer Maturity Evolution
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40. Get SMART on Cloud
Recommended Industry Resources: Use cases:
• The Big Switch, Nicholas Carr – Hybrid Hosting: Dominos Pizza and watch the video
– RackConnect™: VEVO and watch the video
• Cloudonomics: The Business Value of Cloud – Private Cloud: Lighthouse1
Computing, Joe Weinman
– Advisory Services: Acquity Group
• Rackspace Cloud Tools Marketplace
• http://gigaom.com/
• www.gartner.com
• www.forrester.com
Rackspace
Knowledge
• www.idc.com Center
JOIN US!
“Our goal is to create the most
CLOUD SAVVY
customers in the industry”
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41. What We Covered Today
 How does cloud enable first mover advantage to maximize profits?
 What are the Key Performance Indicators (KPIs) to measure your
Return on Cloud?
 Why does a flexible deployment model maximize your cloud ROI?
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42. Q&A
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43. RACKSPACE® HOSTING
RACKSPACE® HOSTING || 5000 WALZEM PLACE | |
1 FANATICAL ROAD SAN ANTONIO, TX 78218
SAN ANTONIO, TX 78218
US SALES: 1-800-961-2888 | US SUPPORT: 1-800-961-4454 | WWW.RACKSPACE.COM
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RACKSPACE® HOSTING | © RACKSPACE US, INC. | RACKSPACE® AND FANATICAL SUPPORT® ARE SERVICE MARKS OF RACKSPACE US, INC. REGISTERED IN THE UNITED STATES AND OTHER COUNTRIES. | W W W.RACKSPACE.COM

44. 1.This presentation outlines general information regarding our services and is for informational purposes only; all
statements and information are provided “AS IS” and are presented without warranty of any kind, express or implied.
Our product/services offerings are subject to change without notice.
2.Trademarks and Service Marks
Rackspace® and Fanatical Support® are service marks of Rackspace US, Inc. registered in the United States and
other countries. OpenStack and OpenStack design are trademarks of OpenStack, LLC. Other trademarks and
tradenames appearing in this presentation are the property of their respective holders. We do not intend our use or
display of other companies’ tradenames, trademarks, or service marks to imply a relationship with, or endorsement
or sponsorship of us by, these other companies.