Cloud TCO | Cloud Adoption, Transition, and Maintenance.

The pandemic era has seen an increase in cloud computing technologies. Be it a big or small business. The cloud enables smooth and remote working. All your employees can access documents on a single platform and use identical document versions.

However, the cost of shifting to a cloud platform can be exorbitant based on your company size. That’s why you need to know the cloud TCO (total cost of ownership) specific to your business.

What is Cloud TCO?

Cloud Total Cost of Ownership (TCO) gives you a precise estimate of the cost of transitioning your business to the cloud. This involves selecting the right rehosting platforms, ascertaining sunk costs due to abandoning the existing on-premise solutions, compliance costs like GDPR and HIPAA violations, and human costs of reskilling your workforce.

Benefits of Cloud TCO

Calculating Cloud TCO helps you be well-prepared to deal with the IT transition on a long-term basis. You may want a robust 3-year to 5-year plan for business stability. Also, you can compare the on-premises and cloud plans to see what fits your bill best. In business expansion, you can arrive at the scale-up costs and plan your budget accordingly. 

How to Calculate Cloud TCO?

To calculate the cloud TCO, start with evaluating your current IT infrastructure costs. This cost could include software, hardware, disaster recovery, upgrades, and security costs.

Next, evaluate the cost of cloud solutions. Cloud solutions involve costs like hosting charges, human capital to maintain the software, scaling/upgrade costs, etc. 

Lastly, compare the on-premise and cloud solutions. See which applications need refactoring, rehosting, or rebuilding.

How to Arrive at a Cost-Effective Cloud TCO?

You can arrive at a lower cloud TCO by employing crucial strategies. First, compare different vendors available in the market. Select the one that provides you with high quality at competitive rates. Second, ensure that your employees are well-trained to go through the transition. Else, you will waste a lot of time making them accustomed to the new processes. 

Third, ensure that your vendor provides work portability. You may have to switch vendors in the future. Hence, make sure that your applications work well on different platforms. Lastly, ensure that you optimize the cloud backup regularly. This method ensures that you do not lose out on essential business data in case of a cyber threat.

Final Thoughts: Use Cloud TCO to Optimize Your Business

Cloud offers you various benefits ranging from smooth remote working to cybersecurity. Hence, ensure a transparent system to calculate the cloud TCO. You may want to cut down those additional bills that come with on-premise systems.

Are you looking for ways to calculate cloud TCO for your business? Cogent Infotech has the expertise to guide you with your cloud migration process. Get in touch with us today!