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Many AWS clients embarking on extensive migrations often choose a Rehost migration strategy to swiftly realize initial cost efficiencies. This approach is characterized by its rapid migration capabilities to the cloud. However, if effective cost optimization strategies and controls are not integrated throughout the migration journey, this method can forfeit the cost benefits associated with the cloud. This article is the first installment in a four-part series designed to guide clients through the process of optimizing costs during an AWS Rehost migration, with a focus on:
- Analyzing cost components and your existing on-premises setup.
- Creating a detailed business case during the assessment phase.
- Managing and understanding cloud expenditures during the mobilization phase.
- Refining costs to achieve the anticipated financial savings during the migration phase.
1. Identifying Cost Components
To accurately construct a business case, it is essential to pinpoint every cost component of your hosting infrastructure. The key cost categories include hardware, software, facilities, and personnel. These components encompass server expenses, storage fees, network charges, and migration costs. The accompanying table (Figure 2) outlines these categories, listing specific cost elements that must be incorporated into the business case.
| Cost Category | Hardware | Software | Facility | People |
|---|---|---|---|---|
| Server Costs | Server, Rack | Server OS and Virtualization | Space, Power, Cooling | Data Center Admins |
| Storage Costs | Storage Disks, SAN Switching | Storage Backup Software | Storage, System, and Virtualization Admins | |
| Network Costs | LAN Switching, WAN Switching | Network Monitoring Software | Network, and Security Admins | |
| Migration Costs | Migration Tooling | Migration Services | Interim Parallel Environment and Lease Penalties | Migration Project Resources |
1.1. Hardware Cost Category
Hardware costs include the physical infrastructure in your data centers, such as servers, racks, storage systems, and networking devices like Storage Area Network (SAN) and Local Area Network (LAN) switches. This also covers the secure disposal of outdated hardware and data erasure services, often conducted by specialized vendors.
1.2. Software Cost Category
Software costs involve licenses for server operating systems, virtualization, backup solutions, applications, and tools for network and security management.
1.3. Facility Cost Category
Facility costs pertain to the expenses associated with the physical real estate and operational costs of the data center. This includes power and cooling systems for the physical servers, storage, and networking hardware. Organizations often overlook these costs when conducting financial assessments, as they are frequently represented as aggregated figures without detailed breakdowns. Nonetheless, it’s crucial to include facility costs in your business case, since AWS pricing encompasses the operational costs of the underlying hardware.
1.4. People Cost Category
People costs account for all operational, technical, and leadership personnel necessary for maintaining your technical infrastructure and data centers.
1.5. Migration Cost Component
Migration costs span all categories (hardware, software, facilities, and personnel) and are essential for estimating, forecasting, and tracking your migration program.
The Migration Tooling element covers any third-party solutions or tools used for application discovery and inventory during migration planning. Migration Services refer to AWS offerings utilized in planning and executing your Rehost migration, including AWS Migration Hub and AWS Application Migration Service (MGN). An “interim parallel environment” or “migration double bubble” describes the temporary coexistence of on-premises and AWS environments during the migration. Lease penalties refer to any contractual fees incurred from reducing or exiting your data center space due to the migration. Finally, Migration Project Resources encompass the total costs related to the resources allocated for the migration project, which may include internal personnel, AWS Professional Services, or resources from the AWS Partner Network (APN).
2. Evaluating Your On-Premises Environment
With a clear understanding of the cost elements in a traditional on-premises hosting infrastructure, we now turn to gathering the technical metadata of these elements for your business case.
2.1. Infrastructure Inventory
Identify sources containing metadata about your environment. Common sources include Configuration Management Databases (CMDBs), hypervisors, and change management systems. Employing a tool to assist in this process can be beneficial. AWS offers Discovery, Planning, and Recommendation migration tools that facilitate automated discovery and technical planning. Regardless of your data-gathering approach, to conduct an accurate analysis for your Rehost migration business case, you must account for each cost element as defined in Figure 2.
An example of 27 common technical metadata outputs from a sample customer CMDB and hypervisor is provided in Figure 3. The specific metadata will vary depending on your inventory source and by cost element. Some of these elements will be explicitly necessary for inputs to the AWS MPA assessment in the lab section of Part 2 of this series.
| Metadata Name | Metadata Description |
|---|---|
| Application ID | A unique identifier for each application in your inventory. |
| Host Name* | The name of the server or virtual machine where the application is hosted. This must be a unique value. |
| Disposition | The desired status or state of the application or server post migration (e.g., active, retired, decommissioned). |
| Environment* | The environment in which the application is hosted (e.g., Production, Staging, Testing, Development). |
| Edge | A boolean flag indicating if the application or server is part of an edge or peripheral network. |
| ERP | Indicates if the application or server is related to an Enterprise Resource Planning (ERP) system. |
| Unique ID / ServerID | A globally unique identifier for each entry in the inventory. |
| Is Physical* | A text string indicating if the asset is “Physical” or “Virtual.” |
| Location | The physical location or data center where the server is hosted. |
The insights gained from analyzing this metadata will prove invaluable in crafting a comprehensive business case for your migration project.
In conclusion, understanding the various components of your cost structure, combined with a thorough evaluation of your on-premises environment, sets a strong foundation for successful cloud migration. To delve deeper into optimizing your training approach, consider exploring microlearning strategies, detailed in this blog post. Additionally, for insights on minimizing vacation scheduling conflicts during the pandemic, check out this authoritative resource. Finally, if you’re curious about the experiences of new Amazon warehouse workers, this excellent resource provides valuable perspectives.