The Economics of the Public Cloud: Calculate your TCO

By Rod Lucero, Xigent CTO


Developing a cloud migration strategy isn’t easy. There are so many choices: public cloud, private cloud, or a little bit of both. According to 451 Research, 52% of workloads will be primarily executed in public cloud environments by 2022, nearly double the rate reported by the end of 2020.


For smaller organizations, migrating to the public cloud can seem like an insurmountable challenge if your team lacks the knowledge and resources to make the transformation. However, a cloud consulting partner can help you overcome challenges and take advantage of cloud benefits.


As you consider whether the public cloud is a good fit for your organization, there a few factors that you can use to calculate your total cost of ownership (TCO):


Reworking: How much time, cost, and risk can you eliminate by moving applications to the cloud? According to a 2020 IDC study, 57% of businesses that moved applications to VMware Cloud on AWS experienced a lower cost of migration.


Retraining: What impact does it make on employee user experience when you put internal applications in the cloud? Really none—most employees experience a seamless transition, while your business experiences increased agility and capability in the cloud.


Lock-in: How much flexibility do you have? Can you preserve the option to move workloads back to an on-premise solution? In the IDC study, companies took 59% less time to migrate, with plenty of availability to switch back if their needs change later.


Operational costs: How much time do you have to spend on administration? Businesses reported 83% less downtime, while being able to shift IT staff to higher value projects because upgrades and updates are taken care of.


When it comes to cloud, your company’s needs are unique and need to be aligned to your business objectives. Xigent’s IT consultants are committed to helping you develop a technology plan that will help you reach your business goals.

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