Return on investment (ROI) measures how effectively a business uses its capital to generate profit; the higher the ROI, the better. ROI is arguably the most popular metric to use when comparing the attractiveness of one IT investment to another.
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ROI is usually stated as a percentage over a specific amount of time; in IT purchasing, three years is the most common time span since technology is often effectively obsolete after three years. Calculating ROI involves two parts: knowing what to measure and understanding how to quantify the value of those measurements into actual dollars.
Learn more about ROI
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