Gartner Research

Building an IT Business Case for Public Cloud IaaS or PaaS

Published: 18 February 2016

ID: G00292471

Analyst(s): Mindy Cancila


Organizations assume cloud will be more cost-effective, but struggle to prove or disprove this theory. Therefore, IT professionals need a detailed business case to justify the investments required to consume public cloud at scale. This document describes the process for creating a business case.

Table Of Contents

Problem Statement

The Gartner Approach

The Guidance Framework

  • Prework
    • Define the Scope of Your Business Case
    • Create a Cloud Strategy, If You Haven't Already
  • Step 1: Quantify the Business Benefits
    • Are You Expecting That Cloud Will Save Money?
    • Have You Defined the Scope of the Business Case?
    • Have You Identified High-Return Use Cases?
  • Step 2: Calculate the Necessary Investments
    • Have You Identified the Functional Areas Impacted by a Move to the Cloud?
    • Have You Accounted for New Solutions?
  • Step 3: Compare and Calculate the TCO and ROI
    • Do You Have a Cost Model to Quantify the Cost and Benefit of Cloud?
    • Are You Able to Justify the Project Based on the ROI?
  • Follow-Up
    • Determine the Cadence for Updating the Business Case
    • Continuously Monitor Business Case Inputs

Risks and Pitfalls

  • Related Guidance

Gartner Recommended Reading

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