Many tech execs manage a hybrid cloud environment, with multiple cloud providers and possibly an existing mainframe. Some companies ended up with a hybrid environment because they were early cloud adopters and didn’t get the desired outcomes, prompting them to try another provider. Alternatively, multiple organizations chose different cloud providers without proper decision controls. Many companies selected multiple cloud providers to avoid relying on a single one.
Regardless of a company’s journey, the tech executive strives to optimize performance in this intricate environment. Total cost of ownership can be really out of whack if there are multiple cloud implementations, and the legacy, say mainframe, environment exists as well.
Tech execs are worried as overall tech infrastructure costs rise due to cloud migration.
Their messaging has always been that moving to cloud will reduce costs because the cloud provider will own the equipment, vs. having to maintain hardware in the datacenter. So, this sales job by a tech executive to their leadership can appear to have been inaccurate.
The reality is, moving applications from legacy systems to the cloud can lead to higher costs.
While transition may require some overlap in production, it’s crucial to decommission as much as possible during migration. A detailed plan should demonstrate the cost reduction during the move. Clearing up tech debt in the mainframe environment beforehand is wise to avoid carrying debt to the cloud, which adds to expenses.
Why are organizations stuck with a hybrid environment?
Initially, in the cloud hype, many jumped onboard hoping for immediate savings. However, merely moving a messy app to a new platform means shifting problems to a different environment. In other words, rehosting doesn’t actually solve anything. It’s just a datacenter change without leveraging the cloud provider’s benefits.
Many organizations opted for a different cloud provider due to misunderstandings about deriving value from their initial choice. The act of rehosting merely shifted chaos from one place to another. Failing to leverage the cloud provider’s PaaS offerings resulted in increased costs for the new platform.
A tech exec needs a thorough plan to migrate the legacy environment to the cloud. If going hybrid, understand the total cost of ownership and consider consolidating platforms for cost-effectiveness. Manage legacy decommissioning alongside migration. Simplify and optimize platform management. Use TCO to assess value in a broad environment.
See this post on Total Cost of Ownership and how to calculate.