Building a Business Case for Migration - AWS Migration Whitepaper

Building a Business Case for Migration

IT leaders understand the value that AWS brings to their organization, including cost savings, operational resilience, productivity, and speed of delivery. Building a clear and compelling migration business case provides your organization’s leadership with a data-driven rationale to support the initiative.

A migration business case has four categories: 1) runcost analysis, 2) cost of change, 3) labor productivity, and 4) business value. A business case for migration addresses the following questions:

  • What is the future expected IT cost on AWS versus the existing (base) cost?

  • What are the estimated migration investment costs?

  • What is the expected ROI, and when will the project be cash flow positive?

  • What are the business benefits beyond cost savings?

  • How will using AWS improve your ability to respond to business changes?

The following table outlines each cost or value category.

Table 2: Business case cost/value categorization

Category Inputs for Consideration
Run Cost Analysis
  • Total Cost of Ownership (TCO) comparison of run costs on AWS post-migration vs. current operating model

  • Impact of AWS purchasing/pricing options (Reserved Instances, volume discounts)

  • Impacts of AWS discounts (Enterprise Discount Program, service credits, e.g., Migration Acceleration Program incentives)

Cost of Change
  • Migration planning/consulting costs

  • Compelling events (e.g., planned refresh, data center lease renewal, divestiture)

  • Change management (e.g., training establishment of a Cloud Center of Excellence, governance, and operations model)

  • Application migration cost estimate, parallel environments cost

Labor Productivity
  • Estimate of reduction in number of hours spent conducting legacy operational activities (requisitioning, racking, patching)

  • Productivity gains from automation

  • Developer productivity

Business Value
  • Agility (faster time to deploy, flexibility to scale up/scale down, mergers and acquisitions, global expansion)

  • Cost avoidance (e.g., server refresh, maintenance contracts)

  • Risk mitigation (e.g., resilience for disaster recovery or performance)

  • Decommissioned asset reductions

For an enterprise Oil & Gas customer, cost savings was a primary migration driver. This customer realized additional financial and overall business benefits through the course of migrating 300+ applications to AWS. For example, this customer was able to increase business agility, operational resilience, improve workforce productivity, and decrease operational costs. The data from each value category shown in the following table provides a compelling case for migration.

Table 3: A case for migration