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
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.