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simplifies IT transformation.

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See how TSO Logic
simplifies IT transformation.

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

New Research Reveals that Flawed Planning Models Miss Millions in Potential Cloud Savings

Posted in: Blog

Global adoption of public cloud resources continues to accelerate. Gartner forecast that the worldwide public cloud market would grow 17 percent in 2018, reaching $287,820 billion. IDC has projected that cloud computing spending will grow at 6 times the rate of IT spending from 2015 to 2020.

Clearly, more organizations believe that public cloud can deliver real value. When attempting to develop a business case for migrating their own environments, however, many organizations calculate that their projected cloud savings will not be as large as they hoped. In some cases, cloud could appear to be more expensive. The disconnect here is not that organizations have unrealistic expectations of what cloud can offer, but that their cost models are often based on inaccurate assumptions .

According to the TSO Logic’s Economics of Cloud Migration Report, some key factors that organizations overlook include:

  • Scope of cloud options: When organizations deploy instances on premise, they typically choose from just two or three platform sizes—e.g., small, medium and large. But cloud providers may offer hundreds of different compute, storage, software and memory configurations. They buy at scale, which reduces costs and then get passed down to the customer. For most instances, there’s a better cloud fit that could run more cost-effectively.
  • Overprovisioning: TSO Logic’s analysis reveals the vast majority of on-premise instances are overprovisioned. By understanding the real-world utilization, storage types and software attached to every workload, you can select right-size cloud options—often at a much lower cost than current on-premise compute.
  • Server generation: If you have an OS instance using a dual-core processor running at X MHz with Y memory, you might assume you need to deploy the same configuration in the cloud. But if your on-premise server is five years old, a latest-generation single-core cloud platform might deliver the same performance at a lower price.

Click here to download the full TSO Logic 2017 Economics of Cloud Migration Report.

 

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