Why is it that Cloud Migration is such a critical element in your organization’s digital transformation? The real cloud migration benefits are from the use of cloud infrastructure and services. For most organizations, these benefits break down into cost (or efficiency), business flexibility, or enabling new business models.
1. Cost savings
Here are some of the primary cost savings the organizations point to most often from cloud migration:
Opex vs. Capex
Driven by “pay as you go” access to services and infrastructure, organizations can transition from a capital expense (CapEx) intensive model to an operating expense (OpEx) model. There are pluses and minuses to each model for tax and accounting purposes, but the use of “pay as you go” models shifts many basic infrastructure and/or application costs to the cloud provider. There is considerable variation by the model used (SaaS, PaaS of IaaS/Hybrid deployments), but each reduce portions of the upfront costs of acquiring, architecting and deploying new applications in-house to the cloud provider. The result is an innate reduction in the need for upfront capital equipment and software, which can result in net positive cash savings.
Pay only for only the infrastructure you use
With an internally deployed application, infrastructure and resources are often sized to be able to support the highest level of loading required – often, these maximum loads only occur for short durations. Think of these maximum loads as a Black-Friday level scenario for a retailer, or the “Monday morning surge” for an internal email server. The result can be a large set of resources that go idle 99% of the time. Properly architected and deployed cloud or hybrid applications use resources only as they are needed, resulting in substantial cost savings.
Decreased data center and utility costs
Rather than having to own the infrastructure to support every application needed across an enterprise, organizations can now concentrate on the portions of their mission-critical infrastructure that are required. Regulatory requirements or performance needs often drive needs for some portion of infrastructure to be placed in local data centers or hosting facilities. Even with these limitations, transitions to cloud resources use results in decreased facility and utility costs as major portions of infrastructure become the responsibility of the cloud provider.
Reduced maintenance and management costs with SaaS
Using a SaaS application rather than deploying off-the-shelf software can result in savings by offloading the vast majority of maintenance and management tasks. Some SaaS applications also offer integration with your directory services or single sign-on environments, allowing them to be added to employee on-boarding, re-classification of roles, or terminations automatically.
Concentrate critical resources on your essential business goals and competencies
Completely replacing an in-house application that isn’t part of your organization’s core business offering or value add with a cloud-base service (usually SaaS) can not only save money, but it can also free critical internal technical resources to work on more critical projects.
2. Enabling new business models
Cloud migration is also a critical enabler of your digital transformation by enabling new business models. Examples of these changes are endless and specific by market and product areas. A few of these include:
- Manufacturers that gain direct access to their customers instead of through third-party distribution systems, or who link directly to their supply chain with live AI-based forecasting models.
- Government agencies able to offer customers services on-line instead of through physical means or outdated green screen compatible models.
- Retailers able to track and suggest content based on known customer preferences using cloud-based AI and analytics resources.
- Integration between cloud services enhances the capabilities that your mission-critical offerings can provide. Examples include accounting, CRM, and AI/ML.
- Operational advantages include enabling more collaboration, better options for remote working, better application uptime as well as new functional and business unit structures.
3. Improved customer experiences
For some organizations, the most significant transformational change sought is to improve customer experience. Cloud migration supports digital transformation by enabling personalized customer experience for every user. Experiences that not only enable faster service and better information, but that take into account the capabilities and interests of users
4. Increased business flexibility
When applications were all concentrated in data centers, the time between the requirement for new applications or service and its deployment could be quite long. Even for an existing application from a known vendor and with limited dependencies required months for initial implementation. Including the time required to order hardware, negotiate and buy underlying software licenses, implement network and management tools, test, and deploy. Not only that, but even expanding capacity could be a significant time sink requiring weeks to months. But using cloud resources, SaaS applications can be immediately available, new versions of in-house applications adapted, deployed, and scaled as needed. And applications developed in-house can gain capacity when needed from cloud-based resources.
The result? Enhancements to existing application digital experiences and offerings can be quickly implemented by extending them to use cloud resources, or new cloud-native replacement applications more quickly built and deployed.
Virtana can help you reap the cloud migration benefits
We’re the critical link that can help make your cloud migration go smoothly, and keep the migrated infrastructure that underlies your applications working with optimal cost, performance, and uptime – For public, private or hybrid clouds.
- Cloud Migration Readiness: Learn about our Cloud Migration Readiness offerings that can help make the process of migrating applications to the cloud fast, efficient, and effective.
- Capture and playback workloads before deployment: Our VirtualWisdom and WorkloadWisdom products work in tandem to first optimize and capture your existing application workloads, and them play then back in the cloud to simulate operation. The result, you know it will work before throwing the switch
- AIOPs driven, application-centric infrastructure management and monitoring – anywhere: Our CloudWisdom and VirtualWisdom products combine to give you AIOps driven cloud and on-premises application-centric problem resolution, performance management/monitoring, workload automation, as well as capacity and cost management.
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