How to Cut Costs When Migrating to the Cloud
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.
Economics 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 Instances
Migrating those 45% of virtualized OSs would generate an overall cost savings of 43% annually.
Over-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 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 Servers
TSO’s anonymized statistical analysis of 10,000 servers found that 25% are more than three years old.
Power 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 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 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 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.
