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Using ROI to a Backup upgrade project

By epimazzo ·
How effectively demonstrate to a CIO that a new backup structure worth?s a lot? By his point of view, ROI cannot be use as a comparative between two investments: The proposal one and your current costs. Be in mind while answering me that my actual cost includes an upgrade to my current hardware so that in case of CIO do not approve the new project, it has to be relevant to become my plataform still operational.

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by BFilmFan In reply to Using ROI to a Backup upg ...

The base ROI formula, which can easily be plugged into Excel, is:

(benefits - cost) / benefits * 100 percent

The benefits and costs are the cumulative of all benefits over the analysis period -- typically three to five years for any IT project, but no longer. Of course, the details on exactly how to calculate the benefits and costs for a particular project is the more difficult part as each company has unique opportunity for benefits, costs and risks and each project's unique costs and benefits need to be calculated at a detailed level.

And should your CIO choose to argue with that formula, ask if he is a PMI certified graduate?

When he says no, tell him that a PMI certified Harvard graduate told you to tell him to shut up, as he looks a lot less stupid.

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by JamesRL In reply to Using ROI to a Backup upg ...

Use risk.

What is the risk to the organization of doing nothing? What is the growth rate? Is the risk increasing over time as you grow? Whats the impact if the worst case happens?

Add that to your ROI. That should help support your project.

James

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by runaldo In reply to Using ROI to a Backup upg ...

You need to quantify the benefits and features of the new solution compared to nothing or the old solution.

"Profits" is saved time to do restore tasks faster (more accurate, better speed, better tapestorage).

The profits you come up with can then be measured on the cost of loss (normally people not able to work). This has different costs due to higher risks and dependencies.

Try calculate IRR (Interal Rate of Return) based on where income is time saved on new product and a given set of occurances (when disaster happens).

Also try to calculate PayBack time (Very popular) - shows how long the product has been used before costs are covered.

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