How to Cut Costs When Migrating to the Cloud

How to Cut Costs When Migrating to the Cloud

How to Cut Costs When Migrating to the CloudHow 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.

Economics of Virtualized OS InstancesEconomics of Virtualized OS Instances

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 Virtualized OS InstancesMigrating Virtualized OS Instances

Migrating those 45% of virtualized OSs would generate an overall cost savings of 43% annually.

Over-Provisioned OS InstancesOver-Provisioned OS Instances

Based on the historical utilization patterns of thousands of workloads that were sampled, 26% of OS instances are over-provisioned.

Generating Cost ReductionsGenerating Cost Reductions

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.

Aging ServersAging Servers

TSO’s anonymized statistical analysis of 10,000 servers found that 25% are more than three years old.

Power GainsPower Gains

Comparing just the processing power, the same workloads that run on Generation 5 servers could run on 30% fewer Generation 9 servers.

Upgrading Older ServersUpgrading Older 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.

Results CaveatResults Caveat

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.

Low-Hanging FruitLow-Hanging Fruit

The results do show that there is probably significant low-hanging fruit that IT executives can identify and migrate, resulting in significant financial gain.

Karen A. Frenkel
Karen A. Frenkel
Karen A. Frenkel is a contributor to CIO Insight. She covers cybersecurity topics such as digital transformation, vulnerabilities, phishing, malware, and information governance.

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