Fundamentals of Estimating Investment Value in the Cloud
In this episode of the Azure Essentials show, Catherine and Chris from Microsoft Finance break down how to evaluate cloud and technology investments using key financial metrics. They explain the fundamentals of Net Present Value (NPV) and Return on Investment (ROI), walk through practical examples, and discuss how to make informed decisions in environments with limited resources. The session is tailored for engineers and developers who want to better understand the financial reasoning behind technology investment choices.
By watching this episode, you will ...
- learn the basics around how to calculate and interpret NPV and ROI for technology investments.
- understand the importance of modeling both costs and benefits, and considering strategic and intangible value, when evaluating investments.
- gain insights into making investment decisions by considering trade-offs, risks, and alignment with organizational strategy.
Resources
- Training: Microsoft Azure Well-Architected Framework - Cost Optimization https://learn.microsoft.com/training/modules/azure-well-architected-cost-optimization/
- FinOps documentation https://learn.microsoft.com/cloud-computing/finops/
- More Essential resources! https://azure.com/AzureEssentials
Related episodes
- Watch more episodes of the Azure Essentials Show https://aka.ms/AzureEssentialsShow
Connect
- Catherine LaPlant https://www.linkedin.com/in/catherine-laplant/
- Chris Shi https://www.linkedin.com/in/chris-shi-10471810/
Chapters
0:00 Industry Context and Investment Challenges
0:47 Introductions and Scope
1:32 Agenda
1:48 Key Components of Financial Projections
2:17 Terminology: NPV and ROI
4:37 Modeling Benefits: Growth, Cost Reduction, and Risk Mitigation
6:00 Modeling Costs: Upfront and Ongoing Considerations
7:06 Practical Examples: Calculating NPV and ROI
8:00 Examples: Comparing Investment Profiles and Decision Criteria
10:00 Trade-Offs and Constraints in Investment Decisions
11:06 First Consider Strategic Alignment
11:37 Use Business Cases
13:20 Resources
Channel9 Fundamentals of Estimating Investment Value in the Cloud: In this episode of the Azure Essentials show, Catherine and Chris from Microsoft Finance break down how to evaluate cloud and technology investments using key financial metrics. They explain the… #InvestmentValue #CloudFinance #NPV
