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simplifies IT transformation.

Our software platforms remove the guesswork so you can now plan with confidence.

How to Cut Costs When Migrating to the Cloud

Posted in: In the news

Published by: CIO Insight

Published by CIOInsight
Click here to read the full article via CIOInsight

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. The fine-grained, algorithmic analysis, done by TSO Logic, attempts to answer questions such as these:

  • Is it more economical to run workloads on-premise or in the cloud?
  • Should companies invest in refreshing their technology or in cloud migration?
  • Often, businesses rely on spreadsheets and high-level financial models to make these decisions.

Other questions addressed were:

  • What is the cost of running OS instances as currently provisioned?
  • How much is each instance used historically?
  • How well do currently provisioned resources match up to utilization?
  • And which of these workloads would be economically more viable in future environments, including cloud or server refresh? Following are the study findings.

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 Logic’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.

This statistical method, performed by TSO Logic, uses anonymized data that includes hundreds of millions of data points from more than 10,000 servers, including hypervisors and non-hypervisors. There were 25,000 virtual OS instances from which the authors compiled a sample.



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