Cloud ROI & TCO

IT solution provider and trusted cloud advisor ACTS quantifies the economic value of cloud migration through the ACTS Cloud Business Cost Model. ACTS is confident that the Cloud Business Cost Model will show substantial savings and dramatically lower total cost of ownership when you compare existing on-prem infrastructure and applications to the cloud.

Cloud Supports Transition to Strategic IT Spending

Those savings are just the tip of the iceberg and they can be redirected to investments in making your company more competitive. However, the real game changer is moving to the cloud itself and the economic benefits this leading-edge approach offers.

Great Collaboration Only Possible with the Cloud

Collaboration is the name of the productivity game especially as more and more workers are remote and will likely stay that way for years to come. COVID has completely changed how and where people work, and the ability to collaborate closely and deeply is the key to teamwork and productivity in the new world of a greatly distributed workforce. You can only reach such great levels of collaboration through the cloud using tools such as Microsoft Teams, Slack, Asana, and others.

We couldn’t have made it through this pandemic without these solutions and need them just as much as COVID eases.

The other game changer is data analytics. Innovation, product ideation, and service creation are increasingly driven by deep data analytics. While much of the data you want to analyze may remain in on-premises infrastructure for a while, the secret sauce is the ready supply of cloud-based data analytics tools, and most importantly, having a data repository which is best created and deployed in the cloud. This cloud-based data repository may well tap in to various on-prem data sources but is viewed and shared through the cloud, offering an easily accessible central point.

Leading Edge Services and Hot Apps Only Run in the Cloud

Think about the software your enterprise depends on the most these days, and the solutions that get end users the most excited. Do any of these apps spring to mind?

  • com
  • Atlassian
  • Slack
  • Zoom
  • Teams
  • Office 365
  • Google Analytics or G-Suite
  • GoToMeeting
  • Workday

Now name the cool new on-premises apps that make you drool. Pretty short? If the cloud is good enough for the best that commercial software has to offer, shouldn’t it run your core IT workloads as well?

Cloud Governance to the Cost Containment Rescue

If the cloud is a free for all, costs can skyrocket. Cloud governance is the answer to potential cloud economic woes. For example, you can use Role-Based Access Control (RBAC) that limits the level of access users have based on what they need to perform their job duties and policies that limit the roles that can buy what new cloud resource.

For example, this would prevent a developer from provisioning a cloud resource with a monthly price tag of $20,000. We’ve actually seen this happen to a customer who migrated to the cloud without putting the recommended governance in place. Needless to say, we helped them implement governance best practices in Azure that helped decrease their cloud costs significantly. Governance provides the guardrails that prevent unpleasant billing surprises.

End Rampant and Budget-Busting On-Premises Underutilization

ACTS invariably finds that the infrastructure on the ground is extremely underutilized. I don’t think we’ve found one yet that was above 15% utilization across the board. Much of your sunk investment in hardware is wasted if you’ve got 85% of your capacity sitting there doing nothing – just in case there’s growth. That’s a big upfront investment.

In the cloud, you can deploy resources based on your current needs and scale them as demand increases. You don’t have to invest in capacity that’s just going to sit there.

Too often people simply replace what they have on-prem with an equivalent cloud SKU. If a server has 8 cores, that’s exactly the capacity they buy in the cloud. They will basically replicate on-prem infrastructure in what they acquire in the cloud in the form of virtual machines, in which case again they are way over-scaled and paying for far more capacity than they need.

Impressive ROI is Behind Broad Cloud Adoption

Businesses make business-based decisions, and nowhere is this truer than with the cloud. “Nothing drives customers more than a clear ROI, and we’re not alone in finding strong adoption for the cloud. As far back as 2018, TechJury predicted that 83% of all enterprise workloads would be in the cloud by 2020. That might have been a little aggressive, but IDG’s most recent 2020 Cloud Computing Study found that 92% of organizations’ IT environments are at least somewhat in the cloud,” Nucleus’ Campbell concluded.

Shawn Pickett photo

Shawn Pickett 

CIO Advisor, Cloud Secure Infrastructure, ACTS

Shawn’s LinkedIn

Learn More About Our Solutions:

Cloud Business Case Modeling
Analyze and rationalize your IT footprint with the data and business case modeling that supports an informed transformation decision.

Cloud Migration Program
The Cloud Migration program defines the benefits of rehosting, refactoring, rebuilding or replacing (5 R’s of rationalization) when moving to the cloud.

Migration Analysis Solutions
Analyze up to 10 applications for cloud & modernization readiness using the CAST Highlight Platform.

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The Financial Benefits of Cloud Migration – White Paper

In this comprehensive white paper we ask the question on whether the cost of moving to the cloud is, in fact, more cost effective than keeping an on-premises environment.

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Cloud Economics Snapshot – Infographic

The cloud is revolutionizing how IT and business is done. If you are not in the cloud, your competitor likely is, and their competitive advantage is hard to overcome.

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