There are many factors to consider when deciding to migrate your business to the cloud, and cost, is high on that list. But calculating the cost of migration is not as straightforward as it looks.
There are many factors that often get overlooked. These overlooked expenses might not block companies from deriving an ROI out of cloud computing, but it could have an impact on the overall cost-benefit analysis.
Here let us take a look at some of the possibly overlooked costs of migrating to cloud.
Moving data to the cloud
This is the most important step in migrating to the cloud. Cloud providers charge for transferring data to their systems, so these network costs have to be accounted for. Another high-cost item may be the labor involved in ensuring your company’s data is properly synchronized once you deploy to the cloud from legacy systems.
It is likely that your company will continue to provide all of its services during the cloud migration, so you’ll need to spend time and money to ensure that the data in local systems do not get out of sync with the data in the cloud. Having properly synced, up-to-date data is crucial.
Integrating and testing apps from multiple vendors
Some applications are simply not ready for the cloud. Whether it’s large enterprise resource planning (ERP) systems with features and functionality that depend on local servers, or legacy software that has been around for years, the cost of integrating and testing these apps after migrating should be taken into account.
Your company may not have all the skills and resources necessary to execute a cloud migration on your own. Therefore, you may need outside expertise and experience. An outsider’s point of view can be helpful in a number of areas. Whether it is executing the migration process, or developing a cloud architecture, a consultants’ knowledge and experience across can be very valuable.
The costs that come with cloud are fundamentally different from the costs incurred by local servers and IT. The biggest factor in calculating the true costs of a move is to identify all the new areas where expenditure will take place as well as all the areas where expenditure is saved due to the move to the cloud.
Cost estimation becomes more complicated when it is performed by the very people whose jobs will be outsourced to the cloud. Conflicting interests will arise when the decision to migrate to the cloud is underway.
An effective cost calculation is best performed by an unbiased team of accountant and finance staff whose jobs are not threatened by the move to the cloud.