Amazon Web Services - Migrating Your Existing Applications to the AWS Cloud October 2010
Page 5 of 23
The order of the phases is not important. For example, several companies prefer to skip Phase 1 (Assessment Phase) and
dive right into Phase 2 (Proof of Concept) or perform Application Migration (Phase 4) before they migrate all their data
(Phase 3).
Phase 1: Cloud Assessment Phase
This phase will help you build a business case for moving to the cloud.
Financial Assessment
Weighing the financial considerations of owning and operating a data center or co-located facilities versus employing a
cloud-based infrastructure requires detailed and careful analysis. In practice, it is not as simple as measuring potential
hardware expense alongside utility pricing for compute and storage resources. Indeed, businesses must take a
multitude of options into consideration in order to affect a valid comparison between the two alternatives. Amazon has
published a whitepaper, The Economics of the AWS cloud
2
to help you gather the necessary data for an appropriate
comparison. This basic TCO methodology and the accompanying Amazon EC2 Cost Calculator uses industry data, AWS
customer research, and user-defined inputs to compare the annual fully-burdened cost of owning, operating, and
maintaining IT infrastructure with the pay-for-use costs of Amazon EC2. Note that this analysis compares only the direct
costs of the IT infrastructure and ignores the many indirect economic benefits of cloud computing, including high
availability, reliability, scalability, flexibility, reduced time-to-market, and many other cloud-oriented benefits. Decision
makers are encouraged to conduct a separate analysis to quantify the economic value of these features.
Pricing Model
One-time Upfront
Monthly
AWS
Co-lo
On-Site
AWS
Co-lo
On-Site
Server Hardware
0
$$$
$$
$$
0
0
Network Hardware
0
$$
$$
0
0
0
Hardware Maintenance
0
$$
$$
0
0
$
Software OS
0
$$
$$
$
0
0
Power and Cooling
0
0
$$
0
$$
$
Data Center/Co-located Space
0
$$
$$
0
$
0
Administration
0
$$
$$
$
$$
$$$
Storage
0
$$
$$
$
0
0
Bandwidth
0
$$
$
$$
$
$
Resource Management Software
0
0
0
$
$
$
24X7 Support
0
0
0
$
$
$
Total
Table 1: Cloud TCO Calculation Example (some assumptions are made)
The AWS Economics Center provides all the necessary tools you need to assess your current IT infrastructure. After you
have performed a high-level financial assessment, you can estimate your monthly costs using the AWS Simple Monthly
Calculator by entering your realistic usage numbers. Project that costs over a period of 1, 3 and 5 years and you will
notice significant savings.
2
http://media.amazonwebservices.com/The_Economics_of_the_AWS_Cloud_vs_Owned_IT_Infrastructure.pdf
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