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Calculation of ROI needs to take into account much more than the hardware or technical aspects. ROI depends on the environment, and it can become complex. In my last position as a datacenter manager, due to the heterogenous systems involved, I had to use mathematical modelling and optimization to calculate the best solution - and then you have business continuity, disaster recovery, and compliance to consider.
Cloud Solutions provide Infrastructure As a Server (IAAS) with no CapEx and with high RIO compared to traditional on premises IT Infrastructure. As the cloud solutions provide elasticity we don't need to worry about buying expensive hardware but use cloud elastic feature to expand or shrink infrastructure based on our need.