As technology advances, companies must constantly evaluate their IT infrastructure and determine whether maintaining on-premises systems or undergoing cloud migration is more cost-effective.

To assist you in making an informed decision, we’re presenting critical considerations for cloud migration and offering recommendations for efficient cost management.


First and foremost, it is essential to “go explore” and find trusted advisors who are knowledgeable about cloud computing and can help steer your organization in the right direction. This may include cloud providers such as AWS or Microsoft Azure and consultants specializing in cloud migration planning. By seeking out these experts, you can better understand the costs and benefits of migrating to the cloud and make informed decisions about how to proceed.

Cloud computing is often thought to be inherently expensive. However, this is not always the case. While it is true that cloud migration can involve upfront costs, such as those associated with the cloud migration process and training, it is essential to consider long-term cost savings. For example, cloud services like AWS can provide real-time enterprise-grade services at a fraction of the cost of maintaining existing on-premises legacy systems.


It is also important to consider the potential costs of not exploring cloud-based options. Maintaining existing applications and on-premises infrastructure may be more expensive, particularly when you consider lost digital asset innovation and security opportunities. Not taking advantage of cloud migration’s benefits can leave companies in the dust compared to competitors with more agile and cost-effective solutions.

To determine whether a system should be maintained on-premises or moved to the cloud, the first decide whether it is a core system that will be a long-term part of the ecosystem. On-premises costs often include licensing, as well as the costs of redundancy, such as failover capability and high availability strategy. Developing a business usage perspective is essential to determine whether the application is a gold tier or requires mission-critical support.

When conducting cost analysis, it is essential to consider all of the factors involved in both on-premises and cloud infrastructures. This may include recovery point objective, recovery time objective, generator and battery backup, data center, carrier redundancy and other hidden expenses like licensing. By breaking down the cost overheads per hour pricing, companies can get a like-for-like comparison between the private stack and cloud options and make informed decisions about which solution is best for them.

One of the key benefits of cloud computing is the shared accountability model that cloud providers like AWS offer. In this model, the provider manages some of the infrastructure and cyber security aspects, freeing companies to focus on other areas of their IT infrastructure. This can ultimately lead to cost savings and increased agility, allowing companies to innovate quicker and respond to changing market demands.


To effectively manage cloud costs, there are several tools and strategies that companies can use. For example, cloud-native features such as cost explorer, billing, and service utilization alerts, and set budgets for utilization can help companies monitor and manage their cloud services. Additionally, industry partners like Zylo can provide valuable insights on using SaaS platforms and licensing for large enterprises.

Other cost-saving mechanisms include using cost-saving plans or reserved instances for resources that will be kept long-term for a significant discount. Companies can also talk to representatives at cloud providers like AWS or Azure to understand discount commitment thresholds. Still, they should be proactive about asking, as providers may only sometimes offer this information unprompted.


In addition to cloud migration and cost management, it’s also important to take a multi-dimensional approach to ROI. This includes not only financial ROI, but also mission and human ROI. Sometimes a project may have a less favorable financial ROI but a greater mission and human ROI, which can be essential for growth and innovation.


Ultimately, deciding to migrate to the cloud requires careful consideration and evaluation of all the costs and benefits involved. However, as technology advances and competition increases, it is becoming increasingly clear that the cost of not exploring cloud-based migration may be greater than the cost of a lift and shift. By seeking expert advice and taking a multi-dimensional approach to ROI, companies can effectively manage their cloud migration planning and stay ahead of the curve in a rapidly changing cyber landscape.

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