Adopting a Cloud first policy?
Excel analysis for Cloud migrations is deeply flawed and could result in increases to the costbase
Enterprises that are considering, or have started, a Cloud migration strate- gy tend to operate on a ‘dual-mode’ basis – i.e. 3rd party or in-house data-centre and a Cloud-based IaaS (Infrastructure-as-a-Service) mode – for the period of transition. The transition period could last several years for large enterprises. In some instances, a ‘dual-mode’ could be the target state for enterprises that need some workload off the Cloud for security, latency or regulatory reasons.
Companies tend to see an increase in their technology costbase during this period of transition that could be directly attributed to the parallel costs of running both the data-centre and the Cloud servers.
This cost uptick is avoidable.
While migrating servers to the cloud, enterprises do not know the cost of their as-is server estate. Enterprises tend to normally operate on “average-of-averages” estimates or none at all as the effort involved in identifying the cost of a server is no easy task on an excel spreadsheet. By “average-of-averages” we mean, a crude spreadsheet analysis that looks at the ‘cost of overall servers divided by count of servers’. This measure is deeply flawed and skewed in favour of inefficient servers.
Read the attached PDF for further details.