Cloud migration costs pre, during and post migration

September 30, 2021

What is the first thing that comes to your mind when you plan to migrate to cloud?

Offcourse, it is the cost involved and the returns on your investment in planning, migrating and operating on the cloud. Well, we with our hands on experience in executing many cloud migration projects, are able to accurately analyse the costs involved pre-migration, during migration and post migration. Though it may change from case to case, there are certain costs which are incurred in all cases of cloud migration. Below, I have detailed out such costs.

The first step in calculating costs is auditing your current infrastructure, inventory and others software and hardware assets. You need to collect all system specifications, their performance data, the cost specifications of running processes, networks and the cost involved in storage and troubleshooting.

Pre- Migration Costs

On-Premise data centre costs – Cost of running servers and procuring them, cost of the rack infrastructure, cost of power for running the system, cost of storage facilities, cost of networks and staffing costs
Hardware – Cost of procuring hardware, cost of hardware maintenance, hardware refresh and replacement costs
Software – Software licensing costs, software support costs, software version update costs
Operations – Contract operation costs, staffing costs for monitoring and alerting, cost of running processes and applications, maintenance of system performance costs
Maintenance – System and application updates costs, staffing costs etc
Cost of running and maintaining your data centres

The infrastructure and the software costs can be grouped into two categories

Direct Costs – It includes cost of purchasing hardware and software components, cost of licensing, cost of operations and maintenance

Indirect Costs – It includes costs to the company because of application downtime, outages and others resulting in loss of productivity

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During Migration Costs

Cost of building the CCOE team
Cost of Cloud project management
Cost of refactoring of applications
Costs involved in containerization
Costs involved in right sizing of instances
Costs involved in migrating the data centre
Costs involved in prioritizing and migrating the infrastructure including database and applications to the cloud
Costs involved in hiring the CSP and contract formation including RFP process
Cost involved in implementing the desired cloud architecture
Costs involved in testing
Indirect costs arising from disruptions and downtime during migration
Cost involved in training the teams in cloud skills
Costs involved in reorienting teams and processes
Tooling costs and more.

Post migration costs

This includes the runtime costs of the applications which have been migrated to cloud like

Software licensing and support costs
System monitoring and maintenance costs
Cost of infrastructure, codes and configuration changes
Security enhancement including patching and updating costs
Cloud personnel costs
Monitoring and maintenance costs
Costs involved in operations on the cloud (resource usage being billed monthly)

Apart from this, various costs may be involved which can be best determined and optimised by us while we work on your cloud migration project. With us, you can rest assured that your investment in migration to cloud would be aptly remunerated and your workflows would be streamlined, fast and more productive and the returns would be way higher.