Cloud Economics

Understand On-Premises Costs

Mar 3, 2017

Make sure you have a clear understanding of your current IT infrastructure and operations costs as this is an important first step of your move to cloud. This provides the basis for defining the migration model that delivers optimal cost efficiency.

On-premises data centres have costs associated with the servers, storage, networking, power, cooling, physical space, and IT labour required to support applications and services running in the production environment. Although many of these costs will be eliminated or reduced after applications and infrastructure are moved to a cloud platform, knowing your current run rate will help determine which applications would benefit from transitioning to a cloud platform. Some applications will need to be rewritten to benefit from cloud efficiencies, and some will be rendered obsolete.

AWS whitepaper – A Practical Guide to Cloud Migration (December 2015) suggests a useful check-list of questions should be evaluated when calculating the cost of on-premises computing.

Further write-up on this topic coming soon