What's the right move?
Recently, a global direct-selling products company found themselves with a situation on their hands. They had been on hold for three years, contemplating a move of their ecommerce systems into the cloud. They hypothesized that significant savings could be realized in the cloud for their highly cyclical workloads, but were hesitant to pull the trigger. They loved that they’d be able to avoid significant hardware purchases and consolidate data centers, but they just weren't quite sold on the financial case, which continued to erode in value as they waited. Pariveda was more than happy to help them pull that proverbial trigger.
Line up all factors and drivers to make an apples-to-apples comparison
The team at Pariveda assisted in estimating all of the costs required to provide services in the cloud against current spending. We worked diligently to capture their baseline spending from financial statements and mapped/allocated spent to various infrastructure services like databases, virtual machines, security, WAN and more. Then, we allocated a total spend to all application bundles that would be considered for migration.
With the on-site, per application TCOs firmly established, we developed a series of pricing calculators that were matched to vendor pricing to establish an apples-to-apples comparison to their potential future cost of ownership. Next, we were able to anticipate the cost to migrate and the pace at which the client could free-up capacity from a fresh and accurate perspective. All of this information was weighed against a number of valuable metrics like NPV, ROI and payback period. We also assessed downstream value drivers, such as innovation and time-to-market that went beyond costs to produce a formal migration roadmap.
Finally, to help provide the most robust business case possible, we identified several additional opportunities for modernization that would only be enabled to the cloud — along with the risks of not moving more expeditiously.
A business case that builds confidence
The client's CIO and CFO gained confidence that their intuition was right all along — the time to move to the cloud was now. Pariveda’s roadmap and TCO comparison helped avoid a costly misstep as the client chose to defer supply chain management migration to allow viable SaaS solutions to mature in the market while they more aggressively pursued their ecommerce migration. The client was finally able to begin the transition to the cloud with a clearly defined path forward.