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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 from TSO Logic Reveals 36 Percent Savings for Enterprise Workload Migration to Cloud

Posted in: News releases

Company analyzed hundreds of millions of data points using machine learning-influenced algorithms to determine optimized cost models for cloud migration

VANCOUVER – December 6, 2017 – In 2018, organizations can save 36 percent when migrating on-premise workloads to the cloud, according to TSO Logic’s new report titled “Economics of Cloud Migration”. TSO Logic measured the provisioning levels, usage and utilization patterns of 105,000 operating system (OS) instances from 20 enterprises, and found that 84 percent of OS instances are overprovisioned, a critical data point when creating a business case for cloud.

According to Gartner’s worldwide IT spending report, enterprises in 2016 spent $170 billion on data centers, servers and compute. TSO Logic’s research determined that by taking advantage of extensive compute options available from cloud providers, enterprises can effectively eliminate overprovisioning and reduce their cloud costs by at least 36 percent or more. For the set of 105,000 OS instances in the TSO Logic study, this translated to $55 million in annual savings. If one applies the 36 percent savings from TSO Logic to Gartner’s IT spending report, it would equate to $61 billion in annual savings opportunities for enterprises.

“Organizations have tried to manually map their current environments to cloud, yet accelerated change and the sheer number of cloud compute options make that impossible now,” said Aaron Rallo, CEO of TSO Logic. “Once you factor in modern compute capabilities, new service offerings and underused resources, organizations can slash their estimated cloud bill by a whopping 36 percent, empowering them to focus on their core business with faster go-to-market execution and improved customer experience.”

TSO Logic captured hundreds of millions of data points from 20 enterprise environments – including age, generation and configuration of all hardware, software and storage; and each instance’s utilization – to create a fine-grained statistical model of compute to determine their ideal fit in the cloud. Additional report findings include:

  • Only 16 percent of OS instances were sized appropriately for their workloads; 84 percent of the instances could run on smaller footprints.
  • The age and generation of on-premise hardware is a critical consideration for migration analysis, as the older the hardware is on-premise, the better the cloud economics.
  • Creating an accurate baseline of on-premise infrastructure is dependent on historical utilization of OS deployments, computational capabilities across multiple generations of processors, changing application patterns over time and the multitude of cloud options for workloads.

Read the full TSO Logic Economics of Cloud Migration report for additional research findings.

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About TSO Logic
TSO Logic delivers analytics and algorithmic decisions for transforming enterprise compute. The company’s platform provides unprecedented visibility into IT compute and utilization, plus actionable analytics for improving performance, cutting costs, and making the business case for transforming environments into ideal future states.

For more information, contact:
Andrea Majorki
+ 1 604.424.4150 ext. 107
amajorki@tsologic.com

 

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