Measure twice cut once. It is sage advice!
If you’ve ever done any kind of home renovation, embarked on a do-it-yourself project, or even assembled IKEA furniture, the wisdom of this advice will resonate with you.
No doubt, you will be able to think of countless examples of mistakes that have been made because this simple cautionary planning advice was not followed.
Even in large, otherwise highly competent, organisations we see examples of mistakes in measurement – or lack of measurement. And when it comes to IT projects, we know that measure twice probably ought to be measure thrice.
And, this carpenter’s caution is especially relevant when we start thinking about moving computing capabilities to the cloud. It is almost impossible to think of a better case for cautionary planning and measurement.
In our experience, the best way to measure cloud computing is the total cost of ownership (TCO). Thinking through and properly understanding the total cost is the only way to ensure costly, regrettable mistakes won’t be made.
Moreover, thinking through the total cost of ownership is also the best way to unlock value and bank significant savings.
With so many variables planning is essential
Complexity demands caution, and cloud computing is complex. Without sound analysis, it is highly likely that moving anything to the cloud will encounter hidden costs that could easily derail a project or cause major setbacks. Worse, the business could be exposed to unintended risks.
We recommend deliberate, cautious analysis to produce an objective perspective and improve understanding of the factors at play in any reconfiguration of your computing capabilities. Objectivity is exactly what we need to make good planning decisions and long-term commitments. It is also exactly what we need to identify areas where savings and value creation are possible.
A TCO approach is comprehensive and provides peace of mind that one does not ordinarily associate with IT projects. Everything to do with cost is on the table; acquisitions, deployment, operations, scaling, support and training, security and compliance, as well as exit costs, which may apply under various scenarios.
Experienced carpenters know only too well that hidden or poorly considered elements can trip you up. What do you mean, transfer fees? So, you’re telling us it will cost more to optimise performance? We’re locked in for how long? Right!
Using TCO analysis is a fundamental component of effective procurement, a cornerstone of modern strategic sourcing practices. Our experience is that the more planning and analysis we do, the less resource needs to be allocated to fighting fires and undoing poor choices.
A solid strategy can achieve up to 20% in savings
It is important to keep in mind that the TCO approach continues to be applied and add value across the life of a project. It is not just a planning activity. It includes carrying out the monitoring and making configuration changes as required to optimise performance.
A well-conceived TCO approach will also anticipate the likelihood and impact of any future change management activity that may occur. The point here is that these costs are also estimated and factored into the total cost before any decisions or commitments are made.
There is enough evidence now that the cloud is certainly one realm where even the savviest leaders can come to grief. The TCO approach delivers the performance you seek to achieve, creates greater value, and achieves substantial savings. We have been party to projects where savings in the order of 17 to 20% have been achieved.
It is no wonder ‘measure twice cut once’ makes so much sense.