How to Cut Costs When Migrating to the Cloud
This study measures whether it’s more economical to run workloads on-premise or in the cloud, and whether to refresh technology or migrate to the cloud.
45% of virtualized OS instances could run more economically in the cloud if they were migrated as is, without any changes to cloud-optimized applications.
Migrating those 45% of virtualized OSs would generate an overall cost savings of 43% annually.
Based on the historical utilization patterns of thousands of workloads that were sampled, 26% of OS instances are over-provisioned.
Migrating those 26% of over-provisioned OS instances to cloud instances sized for utilization would generate a 36% cost reduction compared to provisioning them in the cloud exactly as they are provisioned on-premise.
TSO’s anonymized statistical analysis of 10,000 servers found that 25% are more than three years old.
Comparing just the processing power, the same workloads that run on Generation 5 servers could run on 30% fewer Generation 9 servers.
By upgrading older servers to modern hardware and provisioning them based on historical utilization, the same workloads could be supported with 54% fewer servers.
These results are a top-line analysis. They don’t take into account other advantages of cloud migration or changes organizations can make to applications that would make them more economical.
The results do show that there is probably significant low-hanging fruit that IT executives can identify and migrate, resulting in significant financial gain.