How do you calculate your savings or financial benefits while planning to migrate to the cloud?
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Migration to a cloud infrastructure should not be done solely for financial purposes. Calculating savings and or financial benefits from a cloud migration can be very tricky. It is likely that there will be no recognizable savings in the first few years of a cloud migration. In fact, costs may go up in the short term. However, the best RTO is an improved customer experience, dramatically better disaster recovery, better security and on demand scalability. How does an organization measure these benefits from a purely quantitative perspective?
For us, the benefits are less than financial. There is always something else that will snap up that financial benefit, and often it seems that the structure of fees passed along to us for cloud services are created by the vendor noting they might see financial losses.
ROI is more for us seen in terms of usability and accessibility while maintaining security. This is for both the user and IT. Cloud also can free up IT personnel resources to concentrate on other projects.
It is impossible to calculate exact potential savings so you move a little to the cloud at a time and measure results then.
Difference between my monthly total cost of ownership (depreciation, Maintainence and support) and cost of OPEX of cloud
Never forget the skill cost as well.
Also keep in mind how long is your retention policy in your calculations
We calculate our savings in ease of management and opps to increase security, take some of that off our plate. Not financial savings.