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Cloud Economics

Saving money is one of the key reasons why businesses today want to move to the cloud. Cloud services provide the opportunity for you to use only what you need and pay only for what you use. By moving to the consumption-based model of the cloud you can increase innovation within the organization. However, one of the biggest challenges of the consumption-based model is the lack of predictability.

You need to balance agility and innovation against cost. One of the benefits today of being a business in the Cloud era is the opportunity to use the Total Cost of Operation (TCO) analysis methodologies to compare the costs of owning a traditional data-center with the costs of operating your environment using Hyper Scale Cloud services.

As multiple teams spin up instances to test new ideas, it is important to control and optimize your Cloud spending as your usage increases over time. Don’t target cost savings as the end goal. Instead, optimize spending by focusing on business growth opportunities that can result from innovative ideas.

Cloud economics is the discipline that studies the principles, benefits, and costs associated with cloud computing. In every organization, CIOs are always challenged to integrate IT services that provide great value for their businesses, and therefore with the cloud, they must also define precisely how cloud migration will show an impact on their IT budget and staffing needs. In evaluating cloud economics, IT leaders and CIOs assess the costs concerning infrastructure, security, support, research, and development (R&D), to conclude if migrating to the cloud is beneficial for their organization. 

Cloud Economics Strategy

Cost Optimization

Identify current and migration cost, determine break-even costs, calculate savings following the transition.

Tool based

Tools for TCO analysis on capacity planning, utilization, operations and optimization.


Service automation, Process automation and Configuration Management automation.

Cost Management Culture

Put data in the hands of everyone, create incentives for good behaviour, enact policies and evangelize.

Case Reference

Deployed a Multi Cloud Strategy for different type of workloads after a detailed Cloud TCO Assessment. The Dev & Test infrastructure migrated from on premise DC to GCP.

A secured consolidated VDI setup with DLP built on GCP for the developers from different geographies for quick desktop provision, faster communication between clients & server, prevent any code upload/download, secure mobility, central monitor/manageability & backup of entire Dev & Test infra and better TCO. The production applications deployed in AWS Cloud with end to end availability.

Suggested Reading

Cloud Readiness Assessment Approach

Cloud Readiness Assessment

Cloud Migration Plan

Cloud Migration Plan

Cloud Governance

Cloud Governance

Cloud Coe

Cloud CoE

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