Companies host their own data centers, which means they must pay operation costs
and provision for their worst-case scenario, leading to over-provisioning
The Present
Infrastructure is provided as a service (IaaS) by cloud providers
like AWS, GCP, or Azure
Pay as you go
Scale as necessary
New IT Resources on Demand
Benefit from Economies of Scale
Result: Deploy globally quickly and focus on what differentiates your application
Cloud Economics: Business
Value
Cost Benefits
Compare cost of traditional IT setup to AWS
Identify end-to-end costs
Typically 20-40% less
Best Practices
Ensure releavnt shareholders are present
Use realistic estimates for usage
Assign cost / value to business value factors like agility, risk, automation
anti-practices
Apples to apples comparison. AWS Is more than just discounts
Forget operational costs like power, administration, rent, software, hardware
Lower costs with AWS
Consumption model: only pay for what you need
Average payback time of 6 months
AWS Flywheel
Migration
Return on Investment
Customers want to retire hardware that is fully deprecated.
Cost ( and effort ) of migration requires analysis