Any good business decision must be informed by a firm and precise understanding of the costs and efforts involved, as well as the benefit those investments will bring to your operations. Migrating your IT infrastructure to the cloud is no different—though it can be difficult, to say the least, to glean an exact idea of the profitability of cloud migration solutions.
Here we will take a look at the steps to determining the true cost of cloud infra services.
The first step is, of course, to have a clear picture of the scope and scale of your current IT operations. This will help you understand what you are currently paying, as well as help you imagine what your cloud environment will look like.
These current IT expenses can be roughly separated into two categories: direct costs and indirect costs.
Direct costs: Direct costs are those costs that have a direct and quantifiable impact on your balance sheet. The most significant direct cost of any IT system is without a doubt the hardware and software involved. All totaled, how much do you pay (or have you paid) for physical servers, software licenses, contracts, warranties, supplies, equipment, spare parts, etc.? These costs can be easily calculated by pulling invoices.
After these costs come the direct operational costs. You need to take into account the labor involved in maintaining your servers and other resources, the facilities which house your infrastructure, internet connectivity, and any other costs related to the upkeep of your IT infrastructure.
Indirect costs: Indirect costs, while more difficult to calculate, are no less important. The main indirect cost is the loss to your business should your IT infrastructure go down. A rough picture can be gleaned by multiplying the frequency and duration of your servers’ downtime by an average hourly rate.
Now that you have determined what you are currently spending, the next step is to determine how much the alternative is going to cost. Having completed your audit of your current infrastructure, you should have a pretty clear and complete picture of your current IT needs.
Cloud service providers have taken efforts to simplify their pricing structures to make them more readily comprehensible to potential customers. There are even multiple calculators that can be used to get a roughly accurate idea of the costs involved.
Now armed with the operations cost of ongoing cloud infrastructure, you will need to determine the cost of infrastructure migration services and execution. Here are some elements to be sure you consider:
Moving data to the cloud. The importance of your data can not be overstated. You may need to pay network costs to transfer your data, and you will need to account for the labor involved in transferring the data. And, as you will certainly continue to use your systems during the transfer, you will need to invest in the labor to ensure that these two systems are perfectly synchronized.
Integration and app testing. Whatever strategy you employ to migrate your business applications over to cloud-native services, you will have to invest in ensuring they have been properly integrated and function correctly.
Cloud infrastructure migration consulting firms like Trianz can help you calculate all of the involved costs and benefits, as well as helping you to map out and execute your strategy.
Aside from the operational costs previously calculated, your cloud-based infrastructure will also imply several direct and indirect expenses that must be considered, such as continued integration, testing, security, maintenance, compliance, etc.
Trianz is an expert cloud migration consulting firm, backed by years of experience helping clients perfectly manage their infrastructure migrations. Our top-down approach leaves no stone unturned, and our foresight and considerable experience will be sure to help render your cloud infrastructure migration successful and seamless.
Get in touch with our teams and discover how our cloud migration services can help you navigate your cloud journey.
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