“No Bucks, No Buck Rogers” is a quote from the movie The right one.. Every time I see IT professionals trying to do great things cheaply with technology, it comes to mind.
Don’t get me wrong. I don’t insist on overspending on technology. Certainly not so with cloud computing. However, there are certain levels of resources that enterprises need to make cloud computing work. It’s important to identify that goal post and understand how to fund it.
Generally speaking, the staff most familiar with cloud computing usually have the least experience in planning projects or doing internal politics. For a variety of reasons, they often make cost prediction errors in the cloud projects they drive. As a result, their projects are inadequate or completely fail. Usually, the cost of fixing a failed project is twice as high as if it were originally run correctly.
For the first few cloud migration projects in the enterprise, the problem isn’t entirely someone’s fault. Staff often try to understand the details of the conversion process that they have never encountered in their careers and plan projects that have never been done in the enterprise. Details have been overlooked, and the $ 10 million forecast for migrating 20% of enterprise applications from private data centers to the public cloud is priced quite differently. They do not have the experience and existing indicators available during the planning and implementation stages.
Therefore, new technologies require some trust. If the vendor overturns the truth, or if some technologies don’t live up to expectations, it will take time and money to fix these issues. “Unexpected costs” is a frequent item in recent cloud project reports.
So how can you gain leadership to fund a realistic cloud migration budget?
The most common contingencies need to be planned and considered for successful migration of apps and data to the cloud. If you’re new to moving to the cloud, it’s time to rely on the skills of consultants and employees who understand the technology needed to move to a cloud platform. You also need to understand the existing “as is” state of applications and data in your enterprise and the true cost of skill and time. Then you can model the migration in a realistic way. This includes reconciliation plans for unexpected costs incurred in the first few cloud migrations of every enterprise.
The secret is to provide a realistic budget model that can be proven with existing data.
It’s been 10 years since the industry started cloud computing, but if platform analog exists in the target cloud, how much will it cost to migrate an application with 1,000 function points and a medium complex database? I understand. Do you want to refactor 50% of your application? Add more money. Would you like to move from a traditional relational database to a cloud-native object database? Add more money.
If you don’t know where to start, use the lift-and-shift cost as a base and add to it when you find the additional work and technology you need. The planning process can reveal hidden lift-and-shift costs that make a whole new cloud migration more feasible for specific apps and data.
The final state should be a model of how the migration will take place. The model needs to answer these questions: which technology will be adopted? How long does each workload need? How much does the on-premises tool you need? What cloud tools do you need? Do you need specialized skills? Need improvements in areas such as security? You understand the idea. We will elaborate on this list so that we can model funding changes, such as increased risk and cost over the next few years.
When this model is run in the right way, it is easy to demonstrate the impact of the general requirement of financing adjustments. This model is the easiest way to find the best funding for your cloud project. Does the board or your boss want to reduce money? This is the effect. It’s the same as increasing funds.
Let’s say the board needs to remove $ 3 million from its budget. This model shows a decrease in the number of applications and datasets that can be migrated, a certain percentage of risk increase, and an increase in operating costs outside the year.
Conversely, the model can show the impact of unnecessarily increasing the budget. This should include the point where the profit curve of the project flattens as you spend more money. You need to understand the extremes of both and show that you are finding the right compromises and budget optimization points.
When this is done, it is no longer a negotiation. It deals with models that represent how your project runs, such as the resources you need and how you can use them to optimize your business benefits. This shows how a project suffers when it has too many or too few resources.
Take the time to prepare the optimal project model before raising funds. That way, you can make the most of your cloud budget and benefit everyone. All requirements and results are black and white.
Copyright © 2021 IDG Communications, Inc.
How to get the most out of your cloud budget
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