The cost of migrating to the cloud depends upon several factors. There are significant savings for certain workloads. Read more to see where you can save money and what it will cost to migrate your data.
Cloud Migration Considerations
To determine the migration cost of moving to the cloud, Strategic SaaS will take into account several factors, including:
- The number of users
- The amount of data to be migrated
- “Plumbing” — how will your internal systems, if any, communicate with cloud systems
- The dependent systems of the migration — from accounting programs to printers, what will be impacted by the migration
- The amount of internet bandwidth required— how much data will you need to pass through your connection at the same time
Related: How Do I Move to the Cloud?
Elements in a Cost Comparison: On Premises Vs. Cloud
There are certainly many cost savings that can occur in a pay-as-you-go cloud solution versus an install-and-own on premises solution. The shift from capital investment to operational expenses is often attractive. In particular small organizations and start-ups face much lower infrastructure costs than were necessary pre-cloud. The cloud allows companies to use the resources and expertise of cloud hosting experts, pay only for what they use, and realize potential cost benefits throughout the year.
Larger organizations recognize financial savings and an improved operational model. Much of the integration of services is out-of-the-box with Office 365 which makes for huge cost savings and improved productivity and communication.
The table below shows the shift in expenses when a company moves to the cloud.
|Licensing||Server and CAL licenses||Per user, per month|
|IT Support||Help desk and admin staff||Microsoft support 24/7|
|Infrastructure||Local or hosted data center||Microsoft data centers|
|Hardware Upgrades||About every 3 to 4 years||Microsoft includes with licensing|
|Software Upgrades||Version upgrades and patching required||Microsoft includes with licensing|
As you can see, giving a quick price quote for moving to the cloud is challenging due to the variety of factors involved. Perhaps one way to illustrate the variance in cost would be to provide some real-world examples from our current clients.
Example One: Move AD to Azure, away from hosting provider. 400 end users.
|IT Support||No changes||No changes|
Migration cost varies with strategy and environment.
Ongoing net cost savings with cloud is $12,800 per year/$64,000 over 5 years.
Example Two: Move 650GB of content from a file server to SharePoint Online. 50 users.
|Licensing & Infrastructure||6,000/year||Included*|
|Backup & Storage||7,200/year||Included|
Migration cost varies based on strategy, metadata and security profile
Ongoing net cost savings with cloud is $24,200 per year/$121,000 over 5 years.
*Customer already had Office 365 and 1TB of storage available so their licensing costs did not change.
Example Three: Migrate 2,000 mailboxes and 50 public folders from existing Exchange 2007 and 2013 environments. This real world example shows how much you can save over a 6 year period via graphs and tables. Strategic SaaS performs this kind of analysis to help our customers rationalize moving to the cloud.
A summary of cost savings you can expect: