Key performance indicators

The key performance indicators (KPIs) are used to measure goal attainment. Advance agreement on the relevance of the following cloud computing KPIs can assist in solution/business alignment:

• Time:
  • Availability versus recovery SLA: Indicator of availability performance compared to current levels
  • Timeliness: Degree of service responsiveness, which can be used to indicate rapidity of service choice determination
  • Throughput: Transaction latency or the volume per unit of time throughput which measures workload efficiency
  • Periodicity: Frequency of demand and supply activity or the amplitude of the demand and supply activity
  • Temporal: The event frequency to real-time action and outcome result
• Cost:
  • Workload-predictable cost: Indicator of CAPEX cost of on-premises ownership versus cloud
  • Workload-variable cost: Indicator of OPEX cost for on-premises ownership versus cloud
  • CAPEX versus OPEX cost: Indicator of on-premises physical asset TCO versus cloud TCO
  • Server consolidation ratio: Ratio of servers in legacy infrastructure to the number used in the cloud infrastructure
  • Workload versus utilization percentage: Indicator of cost-effective cloud workload utilization
• Workload type allocations:
  • Workload size versus memory/processor distribution: Measures percentage of IT asset workloads using cloud
  • Instance to asset ratio: Measures percentage and cost of IT consolidation
  • Degree of complexity reduction (%): Measures the number of guest operating system instances versus the number of physical resource assets
  • Tenancy to instance ratio: Measures tenants per resource, which measures CPU and memory utilization
  • Ecosystem (supply chain) optionality: Tracks the use of commodity assets used to deliver company services after the function is migrated to a CSP
• Quality:
  • Experiential—the quality of the perceived user experience of the service
  • Basic quality of service metrics (availability, reliability, recoverability, responsiveness, throughput, manageability, security)
  • User satisfaction
  • Customer retention
  • Revenue efficiencies
• Margin increase per unit revenue:
  • Rate of increase of annuity income
  • SLA response error rate
  • Frequency of defective responses
  • Intelligent automation—the level of automated response (agent)
• Margin:
  • Revenue efficiencies—ability to generate margin increase per revenue.
  • Rate of annuity improvement
  • Market disruption rate—rate of revenue growth versus rate of new product customer acquisition