How much does the cloud cost?

Roland Amacher
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Roland Amacher
Senior Technical Consultant

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Nowadays, migrating to the cloud is a crucial step for companies to improve their IT infrastructure and increase their competitiveness. However, the question “How much does the cloud cost?” is always at the centre of this important transition.

What is cloud migration?

Cloud migration is the process of moving data, applications and IT resources to the cloud. This includes:

  • Data migration: moving data from local systems to the cloud.
  • Application migration: Transferring applications and their data to a cloud environment.
  • Infrastructure migration: Conversion of the entire IT infrastructure to cloud services.
  • Cost reduction: Often with the aim of reducing IT costs and improving scalability.
  • Security check: Ensuring that data and applications are stored securely in the cloud.

The costs of a cloud migration

The complexity of cloud computing requires in-depth consideration of various aspects and functions – from planning and preparation to implementation and optimisation. While companies use the flexibility and scalability of the cloud to minimise operating costs, they must also consider the financial aspects to enable a transparent cost estimate. Our cloud experts at soxes will be happy to advise you in detail! You can find out which steps are involved here.

Planning and preparing for a cloud migration

The initial phase of a cloud migration requires careful planning and preparation. This involves costs for evaluating the existing infrastructure, consulting services, setting goals and possible training for employees. Thorough planning is crucial to minimise potential risks and ensure an efficient transition.

1. Stage
2. Cost factor
3. Examples of costs
4. Aim/benefit
Planning & preparation
Evaluation of IT
Analysis of existing systems
Minimize risks
Consulting
Strategy & migration plan
Efficient transition
Training
Employee training on cloud use
Building acceptance & knowledge
Migration & implementation
Cloud platform
AWS, Azure, Google Cloud
Choose the right platform
Software licenses
Cloud-enabled applications
Use of existing software
Customization of existing systems
Updates, interfaces, development costs
Establishing cloud compatibility
External support
Consulting, technical implementation
Avoid errors, increase efficiency
Optimization & adaptation
Maintenance costs
Updates, patches, security checks
Stable & secure environment
Cost optimization
Scaling, automation, cost management
Improve cost efficiency

Cost-benefit analysis: Expenditure, savings, benefits

At soxes AG, we understand that a cloud migration is a significant strategic decision for any organisation. A comprehensive cost-benefit analysis is crucial to help organisations understand the implications of such a transition. Our expertise and experience enable us to successfully guide companies on their journey to the cloud and help them make the best decisions for their long-term IT strategy.

Factors that influence costs

The size and complexity of existing IT infrastructures determine the initial investment and long-term benefits of a cloud migration. The larger and more complex systems are, the greater the initial investment may be, while the long-term benefits in terms of flexibility and scalability can be significant.

Necessary customisations and integrations during the migration may involve additional costs. A thorough cost-benefit analysis is critical to evaluate the price versus the expected benefits of improved flexibility and scalability. Investing in training and retraining for your team may initially incur expenses, but the expected productivity gains after successful training are invaluable.

Potential savings and benefits

Aside from the direct costs, cloud migration offers opportunities to optimise operations and associated savings. Outsourcing maintenance tasks and security aspects to the cloud provider can free up internal resources that can be utilised for more strategic tasks. Scalability and flexibility also enable better utilisation of resources.

With our KUBE-X development platform, we can also carry out your migration cost-efficiently and immediately. In just a few steps, we can move your business solution to the cloud with our slice and dice process. Do you need a completely new software solution that runs on a cloud right from the start? No problem – we can develop your customised solution directly within the cloud using our KUBE-X platform. For you, this means shorter development times of up to 60%, greater security, high modularity and reduced hosting costs of up to 70% thanks to standardised technologies. Find out more about the benefits of KUBE-X here.

The various cost components of cloud storage

Infrastructure costs

In the cloud, costs are incurred for computing power, storage space and network infrastructure. Compared to traditional on-premise systems, the cloud enables flexible and scalable use of resources, resulting in potential cost savings through optimised use and access.

Example: A company temporarily requires increased computing power for a project. Instead of buying or renting physical servers, it can launch additional virtual machines in the cloud at short notice and only pay for the computing power it actually uses. Once the project is complete, these resources can simply be shut down, eliminating unnecessary costs.

Operating costs

The operational costs of cloud storage include administration, server maintenance, software updates and security measures. Prices can vary greatly compared to conventional on-premise systems.

Example: Companies that traditionally operate their own servers bear the costs for the purchase of hardware, regular maintenance and energy consumption. In the cloud, the cloud provider takes over these tasks, resulting in potential cost savings as no investment in physical hardware or regular maintenance is required.

Costs for software and licences

This section looks at the costs of cloud-based software and licences compared to traditional purchase models. Flexible licensing in the cloud often offers more cost-efficient options. It also makes a difference whether the cloud solutions are used via a private or public cloud. The choice of cloud provider is therefore also an important decision that must be made in advance.

Example: A company is considering switching to CRM software. In traditional on-premise systems, it would have to buy the software licences for each workstation. In the cloud, the company can use the software on a subscription basis and only pay for the licences it actually needs. As requirements change, additional licences can be easily added or removed, providing a flexible and cost-effective solution.

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