February 18, 2020
Five Strategies for Cloud Cost Reduction
Migrating out of a data center and into the cloud can transform your business, but when first thinking it over, it can seem intimidating. You might wonder, “Will such a large overhaul ultimately benefit my ROI?”
There are, in fact, many reasons why the answer is yes. In this post, we will focus on three core facets, specifically how the AWS cloud boosts operational resilience, reduces total cost of ownership (TCO), and leverages DevOps, enabling your organization to scale its impact and deploy applications faster. Let’s begin!
In today’s largely digital economy, companies are expected to always be online and available— essentially maintain a higher level of uptime than ever before. Yet, in light of this reality, downtime remains enormously destructive on businesses’ revenues. In fact, a recent Gartner study revealed that the average cost of network downtime is around $5,600 per minute. That is around $300,000 per hour.
This is one reason why a cloud platform such as AWS is essential in this day and age: it’s equipped to scale seamlessly and meet your organization’s needs so you can maintain that high availability that your customers depend on. With AWS, you can spin thousands of servers in a matter of minutes that can take 10 to 18 weeks with typical on-prem servers. Furthermore, the AWS Cloud spans 61 availability zones within 20 geographic regions around the world, ensuring high availability on a global scale.
Many companies have seen significant improvement in their uptime thanks to switching to AWS. BP, a global energy company, recently moved to AWS from their own servers. Not only have they saved significant support and maintenance costs, but their system is now running 40 percent faster on AWS than it was with their on-prem servers. Enel, an Italian multinational manufacturer and distributor of electricity and gas, has reduced their processing time from four weeks to two days.
Condé Nast Russia, had already outsourced its IT to data center Moscow, but was still experiencing significant downtime and server failures. Since making the switch to AWS they now have uptimes of 99.9 percent, which is a 15 percent increase from the availability they had in their old data center.
In addition to promoting high availability, AWS helps you reduce total cost of ownership (TCO) and optimize cost by taking away the need to invest in large capital expenditures. Their pay-as-you-go model allows you to invest in the amount you need, when you need it. On average, IDC calculates that Amazon customers will capture five-year business benefits worth over $1.5 million per application they have on the AWS platform, 64.3% lower TCO, and earn a return on their investment (ROI) in AWS of 560 percent.
The AWS cloud has a number of services that work in tandem with DevOps best practices in order to deliver applications and services at a greater velocity. In doing so, customers can scale their productivity and boost their revenue.
Take lululemon, for instance. The athletic apparel retailer needed a platform that would allow them to quickly and efficiently develop new applications. They now use a variety of AWS services to engineer a fully automated, continuous integration and delivery system. As a result, “lululemon employees can more easily build dynamic content that best aligns with consumers’ interests,” according to Director of Product Architecture Sam Keen.
Mission is an advanced AWS consulting provider and can work with you to leverage AWS to meet your short and long term goals. Schedule a free 60-minute consultation to learn more about our Migration, Cost Optimization and Managed DevOps services.