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Tallying the benefits of moving cloud apps – Gigaom

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GigaOm last week updated a benchmark report we published in August titled “The costs and benefits of migrating .NET applications to the cloud,” by GigaOm Analyst Ned Bellavance. write. That report details some of the driving forces and decision-making behind the cloud application migration efforts, and helps determine the costs and value IT organizations can expect from an investment. .

In terms of the benefits of the equation, Bellavance in the report points out a trio of benefits:

  • Increase productivity: Reduced administration costs, improved operational efficiency, and faster application and feature delivery are all cited here, because of the only extended and service aspects of transformative operating requirements. cloud.
  • Advanced features: Deployment sites provide discreet application sourcing and versioning, integrating with GitHub, BitBucket, and Azure Repos to enable continuous deployment (CD) and backup, recovery, and mirroring services distribution described.
  • Access to innovation: The ability to continually test and leverage new platform and application features is a core value of cloud approaches.

Of course, the cost of achieving these benefits is questionable. To answer that, Bellavance designed a series of benchmark tests to run on three on-premises and cloud-based PaaS infrastructures, largely equivalent:

  • Site premises: Windows virtual machine running on VMware
  • Cloud: Microsoft Azure uses Azure App Service and Azure SQL Database
  • Cloud: AWS uses Elastic Beanstalk, EC2, and Amazon RDS

His discovery? With the efficient performance of the three options roughly equal, it is clear that the total cost of ownership (TCO) of the on-premises infrastructure is significantly higher than that of either cloud option. Bellavance found that the three-year cost of an on-premises application infrastructure is $ 69,300. The cost of server hardware ($ 20,000), Windows SQL license ($ 10,800), and VMware and SnS license ($ 10,500 each) are among the bigger costs for building on-site .

In contrast, Amazon AWS costs $ 44,237 over three years, with the RDS Version ($ 22,921) and the EC2 Version ($ 15,542) taking the bulk of the cost. Microsoft Azure is still cheaper: a total of $ 41,888, with Application Services ($ 20,288) and Azure SQL ($ 18,000) accounting for nearly the entire cost.

But this cost breakout bypasses a key advantage for Microsoft stores to move apps from on-premises to the cloud. Specifically, the Azure Hybrid Benefit (AHB) licensing reduces the cost of an Azure migration by allowing customers to apply their existing, on-premises Windows Server and SQL Server licenses to Azure virtual machines and editions. Azure SQL database. The impact could be big. Bellavance in her study found that the AHB cut more than $ 10,000 in its three-year budget, reducing the total cost from $ 41,888 to $ 31,088.

Migration advice

The numbers are sure to add up, and for existing on-premises licensed Microsoft stores, the savings on switching to AWS can be substantial. Of course, a well-thought-out and well-thought-out migration plan is required to ensure that such savings can be achieved. Bellavance in its report provides guidance for IT organizations looking to move away. He urged a four-stage approach:

  • Appraisal, quantification, evaluation: Categorize existing applications by revenue generation and cost to maintain. While there may be hundreds or thousands of applications to process, consider working on apps in a specific category – for example, by department, application, or data type.
  • Prioritize: Identify applications that generate good mobility candidates, according to criteria such as existing maintenance costs, migration risks, and opportunities created – for example, to unlock new functionality.
  • Evaluate: You can map application dependencies on data sources, services, and infrastructure to help identify team migration candidates.
  • Expertise: Perform test moves to validate functionality and performance, and to build experiences around target environments, such as what is available in the operations management console.

The attempt to migrate cloud apps can be very profitable, both in terms of cost savings and operational benefits. See Bellavance in-depth benchmarks report, “Costs and benefits of migrating .NET applications to the cloud” for opportunity details.

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