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What factors impact the cost of cloud migration

Written by Ron Kordys | Jul 21, 2021

Getting started with Azure Cloud infrastructure can be both frightening and exciting! However, the first steps are always the most important, and planning your cloud migration budget is an excellent place to start. It assists you in organizing your procedures, estimating costs, and preparing for the giant leap.

This blog will assist you in comprehending and identifying the various costs associated with migrating from on-premise to cloud infrastructure.

Your current on-premise conditions primarily determine the cost of your cloud migration. Your existing infrastructure, workload integrations, cloud applications, the degree of virtualization of your functions, and the support you'll need during the migration are all factors to consider. For example, migrating to the cloud infrastructure will take longer and require more resources if you use an infrastructure with numerous customizations and a high reliance on your current infrastructure solution.

We can assist you with the following steps to determine the costs of cloud migration:

1. Examine your on-premises system in detail

Take a close look at your current infrastructure solution before making the switch from on-premises to cloud. It will not only assist you in determining the costs associated with the migration process, but it will also assist you in developing a blueprint of the infrastructure you will require.

An in-depth examination of your current infrastructure solution will aid you in determining replacements and updates, as well as identifying redundant resources that can be reduced.
Here are the parameters you'll need to consider:

  • Cost of your on-premise system: Make a detailed list of all the costs associated with maintaining your on-premise infrastructure solution, including:
    • Expenses that are visible
    • Contracts, the physical environment, staff, and operations are all recurring expenses.
    • Hardware purchases, for example
    • Costs incurred by the system's operation that aren't directly related to the system's operation
    • Maintenance charges when employees are working from home
  • Infrastructure components: When it comes to creating an efficient cloud infrastructure blueprint, the number of servers you own and the storage levels you work with are both critical
  • In the cloud, you'll want to include or exclude elements: You can assess which workloads, software, and applications you want to migrate to the cloud and which you don't
  • Determine whether there are any compatibility issues: Not all your applications and software will migrate to the cloud without a hitch. To work correctly in the new infrastructure, a few of them would require upgrades, replacements, or modifications
  • The stages of the migration process: The Azure cloud migration process cannot be completed all at once. To ensure business continuity, it must be completed in stages. Based on their criticality and functionality, you must decide which components to migrate in which phase

2. Calculate the costs of cloud migration by charting your cloud infrastructure requirements

After you've assessed your current on-premises situation, you should know which applications and resources you'd like to migrate to the cloud and which you'd like to get rid of.

Your total cost will be influenced by the list of services you want to migrate and their functionality. Make sure to consider the following factors when calculating the costs:

  • Data Migration: Data migration is a critical component of the cloud migration process. The security and efficiency of your data migration are vital to the new infrastructure to be set up. In addition, a seamless data migration flow is essential for a hassle-free run of your operations later, even though it is a time-consuming process that requires many resources and possibly the help of a cloud infrastructure services vendor
  • Organize your workloads: You may need to upgrade, modify, or replace a few applications and software as you integrate your workloads into the cloud infrastructure
  • Consultant Fees: Deploying a cloud infrastructure and migrating multiple applications efficiently would necessitate specialized knowledge in this area. A third-party Azure cloud migration services provider can bring in the expertise and complete the process efficiently and accurately
  • Consider the passage of time: Labor costs account for nearly half of all cloud migration expenses. The entire process, which includes infrastructure migration, testing, and verification, necessitates a significant amount of human and time resources, which must be factored into the overall cost

3. Costs of post-cloud migration
Have you finished setting up your cloud infrastructure? Great!
Several direct and indirect costs would be incurred during your post-migration period. To begin, there are the costs of cloud migration/services in general. Other prices will include labor and training, maintenance, infrastructure operations, workload and application integrations, data security and compliance requirements, patching, uptime, and monitoring.

4. Benefits and Cost Savings of Cloud Migration

Although the advantages of cloud migration are not limited to cost savings, the savings could be significant. Here are a few more important benefits of cloud infrastructure:

  • Reduces legacy costs: If you use an on-premise solution, you'll have to pay for upgrades, maintenance, and additions to keep the hardware and software secure and scalable. These costs are significantly reduced because the cloud does not require much physical infrastructure
  • Pay-as-you-go model: One of the main benefits of cloud infrastructure is that it creates an environment that can be easily scaled up or down or modified according to the needs. As a result, the 'pay-as-you-go' model benefits you in the future for any changes to your infrastructure and environment
  • Enhances business productivity: The cloud infrastructure's forecasting and automation functions help you streamline end-to-end business processes, increasing operational efficiency
  • Allows for profit growth: The cloud infrastructure enables a better user experience and provides valuable insights, enabling you to improve critical business functions and grow your business and profits
  • Adequate security: Almost all cloud infrastructure service providers offer cutting-edge security tools and technologies to safeguard and monitor data, applications, and services

The Cloud migration process is lengthy, technical, complicated, and costly, and it is rarely completed correctly by a company with no prior experience. However, you can use an Azure cloud migration services provider like Columbus Global's diverse experience and expertise to complete the migration process quickly and accurately while staying within your budget.