New model aims to solve conundrum of cloud savings

Thursday - 12/8/2011, 6:28pm EST

Hardish Nandra, partner, CSC

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The release of FedRAMP today is focusing attention again on how much money federal agencies can save on moving to the cloud.

The debate over those savings, and if they're enough to justify the up-front costs, is a little clearer though.

Hardish Nandra, a partner at CSC, joined In Depth with Francis Rose to discuss how exactly to calculate cloud computing costs.

CSC, a technology contractor, has been working on a model — which Nandra said is in version 1.0 — to determine the true costs and savings of cloud computing.

The model revolves around adding up total-cost-of-ownership, or TCO, and the all-important ROI — return-on-investment and taking into consideration the size of data centers and technology "refresh rates."

Nandra discussed how the model was developed and how it could evolve in the future.