The True Cost Of Migrating On-Premise Infrastructure To The Cloud

With the shift in cloud-based solutions showing no signs of slowing down, we often think about the true costs of cloud migration.

Organisations are enticed by the cloud’s promises of scalability, flexibility, and cost-efficiency. However, the decision to migrate presents some advantages, but it is also valid to note the drawbacks. Especially, when the actual cost can extend beyond the budget, for this reason, we see many businesses flip-flop between the two worlds. Confused and uncertain about the level of commitment and the lack of strategy, leadership is often faced with difficult decisions that can potentially harm the business.

In my experience, there is a lack of understanding of the scope: the benefits and the costs involved in making these choices. In this article, I delve into the multifaceted aspects of migrating on-premises infrastructure to the cloud, unravelling the true costs of migration, hoping to help you make an informed decision for your business.

So What’s Positive About Cloud Migration

Scalability and Flexibility:

The cloud enables organisations to scale resources dynamically according to demand. Unlike on-premises infrastructure, scaling often requires substantial upfront investment and time-consuming processes.

This agility enables businesses to adapt swiftly to fluctuating workloads, enhancing operational efficiency and boosting customer satisfaction. For the first time, we have such a large degree of flexibility; it requires a shift in mindset from the sizeable single server instances to the flexible containerised (load-balanced).

Cost-Efficiency:

Cloud computing offers a pay-as-you-go model, eliminating the need for hefty upfront capital expenditure on hardware and infrastructure. Additionally, organisations can benefit from economies of scale as cloud providers leverage their vast infrastructure to offer services at competitive rates. Moreover, the cloud reduces ongoing operational costs associated with maintenance, upgrades, and energy consumption, leading to long-term savings. This has never been more important with the growing cyber threats.

Some instances of lacking upgrades for legacy and patching can leave businesses at risk, now more than ever. Let’s explore this in more detail.

Enhanced Collaboration and Accessibility:

By migrating to the cloud, businesses transcend geographical boundaries and facilitate seamless team collaboration. Cloud-based tools enable real-time access to data and applications from any location, fostering productivity and innovation. This accessibility offers a more agile and responsive work environment, empowering employees to collaborate efficiently, irrespective of their physical location.

Improved Security and Disaster Recovery:

Cloud providers invest heavily in robust security measures and compliance frameworks to safeguard data against cyber threats and breaches. Additionally, cloud platforms offer built-in redundancy and disaster recovery mechanisms, mitigating the risk of data loss and ensuring business continuity by leveraging the expertise and resources of cloud providers and organisations,

If you think, “Nothing beats my 3-2-1 backup” and/or “My disaster recovery is better than the cloud”, then you are wrong! It takes a lot more technology and resources to come anywhere near the scalability and protection of the public cloud. You may get close, but it will always be at a different level than Microsoft, Amazon, or Google can offer in comparison for a fraction of the costs.

The Negatives Of Pushing Your Business Into The Cloud.

Hidden Costs and Vendor Lock-In:

While the pay-as-you-go model initially appears cost-effective, organisations may encounter hidden expenses associated with data transfer, storage, and bandwidth usage. Moreover, as businesses scale their operations on the cloud, they may become susceptible to vendor lock-in, wherein switching providers or migrating back to on-premise infrastructure entails significant complexity and cost. This dependency on a single vendor can limit flexibility and hinder strategic decision-making.

Performance and Latency Issues:

Despite advancements in cloud technology, organisations may encounter performance and latency issues, especially in scenarios where real-time processing and high throughput are paramount. The physical distance between users and cloud data centres can introduce latency, impacting application responsiveness and user experience. Additionally, shared resources in multi-tenant cloud environments may lead to performance degradation during peak usage periods, necessitating careful optimisation and resource allocation.

Compliance and Regulatory Concerns:

Migrating sensitive data and applications to the cloud raises compliance and regulatory challenges, particularly concerning data sovereignty, privacy, and industry-specific regulations. Cloud providers operate globally, which may conflict with jurisdictional requirements governing data residency and protection. Compliance with diverse regulatory frameworks demands meticulous planning, robust encryption, and contractual agreements to safeguard sensitive information and maintain regulatory compliance.

Dependency on Internet Connectivity:

The reliance on internet connectivity represents a fundamental vulnerability of cloud-based infrastructure. Organisations may encounter service availability and productivity disruptions due to internet outages or network latency issues. Moreover, data privacy and security concerns may deter businesses from fully embracing cloud solutions, for instance, regions with inadequate internet infrastructure or heightened cybersecurity risks.

Summary

Migrating on-premise infrastructure to the cloud entails a complex interplay of benefits and challenges, each significantly impacting operations’ overall cost and efficiency. While the cloud offers unparalleled scalability, flexibility and cost-efficiency, organisations must navigate potential downfalls, including performance issues, compliance concerns and dependency on internet connectivity. By conducting thorough analyses of regulatory requirements and implementing robust security measures, businesses can unlock the full potential of cloud computing while mitigating risks effectively. Ultimately, the actual cost of moving to the cloud transcends financial considerations, encompassing strategic, operational, and technological implications that shape the future trajectory of organisations in the digital age. The first step is the cloud migration assessment of a business. This is something that Planet IT can help with as a subject expert.

If you want to talk to one of our experts about how we can help your business review its environment and plan to move to the cloud, please call 01235 433900 or email [email protected]. If you want to speak to me directly, you can contact me via DM or at [email protected].

Read more about Cloud Implementation Strategy.