How to calculate the true cost of a cloud server migration tool

While there are a lot of things for you to consider when you have intention to move to the cloud, cost is absolutely high on the list. But tallying up the cost of a migration is much harder than it looks. Here are all the steps how to do it right:

Cloud server migration

  1. Check your current IT infrastructure costs.

Deep understanding of your current operations is compulsory, and an infrastructure check is the first thing you should do. The examination will reveal what you’re currently paying to run IT and what your new cloud environment will look like.  This will help you find out the potential cost of the cloud resources you’ll use.

  • Direct costs.

Direct costs are pretty easy to calculate because they directly hit your balance sheet. The first thing direct costs include is the hardware and software. You need to know how much you have to pay for your physical servers, software licenses, maintenance contracts, warranties, supplies, material, spare parts, and anything else.  All of these costs should be fully kept, and you can access them by having your accounting department pull invoices, purchase orders and payment records.

  • Indirect Costs.

Indirect costs are a little bit more difficult to calculate but they are just as important as direct costs. The biggest indirect cost is the loss of productivity suffered by your employees and customers if your IT infrastructure goes down. If you want to calculate these costs, make sure that you know how often your servers go down and how long then multiply that time by an hourly rate.  If you can estimate revenue lost due to downtime that should be included as well.  Every company’s indirect cost situation will be different.  Indirect costs can be difficult to estimate, but are very important to consider, as they can make up a significant portion of overall IT costs.

  1. Calculate your estimated cloud infrastructure costs.

After you know exactly how much your current infrastructure costs are, it’s time to calculate your potential cloud infrastructure costs. Your check should give you a deep understanding of the network and cloud storage you need to run the applications you want to migrate to the cloud.

  1. Estimate cloud migration execution costs.

The next step is calculating the costs related to executing the migration of your IT operations to the cloud. The scope of your current IT infrastructure and how much of it you plan on moving to the cloud will decide how large of a cost the migration process will be.  Here are the components to consider when calculating the cost of the cloud migration execution process:

  • Moving data to cloud.
  • Integration and testing of apps.
  • Consultant fees.
  1. Approximate additional post-migration costs.

Are there any extra costs when your cloud server migration is complete? You’ll have to pay the monthly costs that you calculated in step 2. But you should consider the direct and indirect costs required for maintaining and improving your new cloud environment and many of them will continue to be paid after your first migration is complete.

After you’ve calculated all the costs, you might see an amount of money. Pretty sure that number is smaller than all of the costs you’re currently paying for on-premise infrastructure, isn’t it? Any way, you should find out more about the costs before you decide to go to a cloud server migration that would help you solve a lot of problems may happen.

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