Essential guide to cut costs and enhance business performance with cloud migration services
An organization’s average cost of downtime is $5600 every minute, as per Gartner, in 2014, and since then, the figure has increased to $9000, as per recent reports.
Of course, it is an average, and companies lose a lot more, like Facebook lost $90 million in a 14-hour outage in 2019. With on-prem, downtime comes to your IT team. It is one of the significant opportunities for cost savings and performance enhancement in the cloud. Rather than putting the responsibility of uptime on your team and hoping your servers can manage a major incident, you outsource the responsibilities to your cloud vendor.
Here are some practical ways how cloud migration benefits companies:
Frees your IT team
Draft a list of things your IT team performs to manage on-prem services, such as scheduled upgrades, performance upgrades, VPN installation for remote access, change management, server replacements, and more.
When you shift to the cloud, these responsibilities fall on your cloud migration services provider. They are responsible for enhancing security and managing servers, replacing outdated technology with advanced and upgrading software consistently to check for bugs.
So, it frees your IT teams to focus on strategic and vital tasks rather than the tedious ones giving your company a competitive advantage.
Eliminate operational physical expenses
Cloud migration eliminates a lot of physical and operational costs of on-prem hosting, including:
- Servers: You consistently have to repair and replace your servers in 3 to 5 years.
- Server support: Apart from the servers, you must also check the supporting hardware parts and other assets such as load balancers, server racks, etc.
- Software licensing: Over-licensing is the most considerable expense faced by US and UK companies, and switching to cloud service migration ends it.
- Electricity bills: 80% of on-prem organizations pay higher bills.
- Space: Physical servers demand space which means moving to the cloud opens up the space for other uses.
- Maintenance: Server maintenance demands a team that can be ditched by hiring a cloud vendor.
- Asset management: The higher assets your IT department has, the more you need to manage it, leading to more time, effort, money, and resources.
Eliminate environmental costs
The cloud services migration process is 98% more environmentally friendly than on-premise. The more you use, the more energy it uses and the higher the amount.
Get rid of the cost of scaling
80% of companies pay way more for computing power than needed. Hence, switching to a cloud service automatically scales resources up and down as per your requirement. For on-prem hosting, your IT team has to estimate the use of servers and load balancers. So, if the team guesses it higher or lower, you will have to add or eliminate the servers accordingly.
An incorrect guess can significantly impact the estimation. But with cloud service migration tools and services, you can automate your scaling options. When usage rises, the computing power increases to meet the demand. When use falls, it comes down to saving money.
Calculating business performance and gains
The tricky part of the comparison is calculating both for your ROI. To know your initial investment and profit in migrating from on-prem to the cloud, you should add the expenses of professionals, resources, software licenses, cloud subscriptions, and data migration along with any cloud tool you use.
To add the gains, you should add savings on hardware, space, software licensing, data center, maintenance and servers, IT team, and cost of upgrades. Once you calculate both, you can come up with cloud service migration benefits.
To have everything in place, accessible by all, at any time is a new thing. Cloud migration services offer collaboration and document control. Considering the cloud service migration advantages, moving to it is a significant decision that can make or break your business performance. Cloud is seamless and robust and helps your business save time and expand its existing infrastructure with enough room for apps to grow without affecting the overall performance.
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