How to calculate the true cost of migrating to the cloud
Four steps to getting it right
By Mike Chan, CMO, Thorn Technologies, an AWS-certified cloud computing and software development firm
Network World | FEB 2, 2017
https://www.networkworld.com/article/3164444/cloud-computing/how-to-calculate-the-true-cost-of-migrating-to-the-cloud.html
Research Challenges for Cloud Computing
Economics
Darko Andročec
Faculty of Organization and Informatics
University of Zagreb
Pavlinska 2, 42000 Varaždin, Croati
https:// bib.irb.hr/datoteka / 526864.Cloud_Darko_Androcec .pdf
Auxis SOLUTION & APPROACH
One of the 20 Most Promising AWS Solutions Providers by CIO Review magazine.
Auxis’ deep expertise in AWS enabled it to identify multiple cost savings opportunities that included the following strategies:
AWS Cloud Cost Reduction strategy # 1: Implementing a new flexible pricing model: the AWS Compute Savings Plan Implementing a new flexible pricing model: the AWS Compute Savings Plan
This new plan offered a significant discount based on committed spend instead of the traditional committed utilization approach. The new plan created inherent flexibility for the client’s organic growth by reducing costs across a multitude of AWS compute usage – thus making the incorporation of new applications more cost-effective. Auxis helped the client determine an annual commitment that made sense based on historic use, server requirements, and future growth.
AWS Cloud Cost Reduction strategy # 2: Leveraging AWS Lambda to automatically shut down servers during non-operating hours Leveraging AWS Lambda to automatically shut down servers during non-operating hours
Since AWS costs involve actual usage, Auxis analyzed business requirements and workloads to identify services that could be shut down during non-operating hours. Auxis then implemented a fully automated auto-scale solution using AWS Lambda to shut down servers when they aren’t required – reducing usage from around-the-clock to 50 hours per week for some servers.
AWS Cloud Cost Reduction strategy # 3: Implementing AWS FSx service and moving away from traditional Windows Server to File Server as a Service Implementing AWS FSx service and moving away from traditional Windows Server to File Server as a Service. Auxis implemented AWS FSx service -reducing file server costs and enhancing performance and security.
While Auxis continues to manage the AWS cloud environment as part of its Cloud Managed Services, AWS FSx now performs time-consuming administrative tasks like software configuration, patching, and backups that were previously handled as part of Auxis’ managed services for the client.
AWS Cloud Cost Reduction strategy # 4: Leveraging AWS tagging and resource management to provide better visibility and insight into AWS cost drivers Leveraging AWS tagging and resource management to provide better visibility and insight into AWS cost drivers. When companies start growing their environments in the cloud, it’s easy to lose track of what they’re using, who owns it, and most importantly, how much it might cost and whose budget will be used to pay the invoice when it arrives.
Effective management of cloud resources requires a tagging strategy that can be implemented uniformly across the organization to filter resources by type, application, owner/cost center, and any combination thereof. By implementing AWS tagging and resource management, Auxis was able to build reporting, implement targeted alerting, and expose all resources in real-time dashboards to provide better visibility and insight on how cost was allocated. This allowed the client and Auxis to proactively identify and execute cost optimization strategies in an ongoing basis.
RESULTS
Through all these strategies, Auxis helped the client significantly reduce its AWS cloud spend and achieved the following results:
66% Reduction in AWS Cloud Costs thanks to Auxis’ services 66% Reduction in AWS Cloud Costs – Implementing the AWS Compute Savings Plan and the automated auto-scale solution generated an initial cost savings of 66%.
55% Reduction in File Server Costs thanks to Auxis 55% Reduction in File Server Costs – In a second stage, moving the client from traditional Windows File Server management to AWS FSx created an incremental cost saving of 55%.
Better Scalability for Future Growth by leveraging Auxis’ services Better Scalability for Future Growth – As the company continues to grow through acquisitions, the new AWS flexible pricing model and all the automation and best practices implemented have created a strong foundation for the client to continue absorbing incremental infrastructure needs in a more scalable, flexible, and cost-effective model.
https://www.auxis.com/blog/aws-cloud-cost-reduction
Ud. 1.5.2022
Pub 11.4.2018
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