Why Rightsizing is Your Key to Cloud Migration Cost Savings

November 17, 2021

When it comes to cloud migration, you get out what you put in. Strong preparation can lead to significant savings. Let’s find out more.

Most of the time, it makes sense for companies to transfer their IT systems to the public cloud. As well as being easier to deliver, scale and upgrade services, it also makes your workloads more efficient, which leads to cost savings. However, you have to get your migration right – and not enough companies are doing that. This is often down to failures in the way they prepare for migration or the speed and urgency with which they have migrated.

In this article, we’ll look at rightsizing – and how some extra forethought at the start of the migration process can lead to better results at the end.

Cloud migration issues

When companies migrate their IT systems, data and applications away from static on-site environments and on to public cloud systems such as Microsoft Azure or Amazon Web Services, they are trying to achieve efficiencies and save on costs. However, often they don’t find these efficiencies and running their IT actually becomes more expensive. 

In many instances, this is because companies have purchased too much capacity from their public cloud provider, or gone for a like-for-like transfer of workloads. This is inefficient because:

  • They may be exporting redundant systems that, in reality, do not get used
  • They purchase enough capacity to cater for peak demand (which you need to do on legacy on-premise systems) and not average demand, which is more relevant for the public cloud
  • In not wanting to risk underperformance issues or user satisfaction or acceptance issues they upscale the resources they purchase to top end servers, processors and storage. 

Rather than discovering new efficiencies, these companies are just transferring everything that was wrong with their old system to a new one. A survey by Bain & Company found that badly planned direct match migration can cost 10-15% more than keeping legacy on-site systems.

However, there is a solution to getting all that cloud infrastructure under control.


Introducing rightsizing

Rightsizing is the process of auditing your infrastructure and your workloads in the public cloud, making sure everything is optimised, so your requirements from your cloud vendor match your needs and are as affordable as possible. It covers a variety of actions.

Rightsizing can be eliminating assets running on your current system that are no longer used because they’re redundant or were not reduced or turned off. These are sometimes called ‘zombies’. Why would you want to continue paying for non operational zombies?

You should also assess the capacity you need to deal with demand from your staff and customers. The Bain survey found that 84% of workloads on legacy systems are over provisioned, so if you move them directly to the cloud, you’re sending capacity you don’t need. You need to look at your usage patterns and storage capacity utilisation and see if you can downsize without affecting performance. In public cloud infrastructure, which is easily scalable, you may need to plan for average demand rather than peak demand. 

Finally, rightsizing is taking action to make sure your system is running as efficiently as possible. The Covid pandemic has accelerated many companies’ migration to the cloud and in doing so quickly, many companies have ended up with more resources than they really need and at greater cost than they had anticipated.  These companies need to adjust their cloud resources to better match their actual utilisation.  But to do this they need an accurate and thorough analytics solution.

The iPortalis solution

iAnalyse360 from iPortalis provides deep detailed Microsoft Azure and Microsoft 365 analytics that shows precise utilisation down to workload components and covering all Azure Meter categories. It provides the data you need to right size software and cloud resources - identify where exactly to reduce costs.

iPortalis can also help you rightsize your Microsoft licenses with a click of a button, helping you save valuable time and money.

To find out more, book a demo with our team today by clicking the button below.

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