This is the Ground Control to Major Tom, It is time to migrate down from Cloud providers to…

A Case Study: Strategic Migration from Cloud Services to On-Premises to Manage Rising Operating and Professional Services Costs. The article is based on my past consulting experiences. Not only able to have a full control of the direction of company’s analytics stack, it is also a more direct computing the energy consumption of company’s analytics stack.

Company Background

Company Name: AInS Corp

Industry: Telecommunications Services Provider

Size: 6,000 employees

Revenue: $1.2 billion annually

Core Business: AInS Corp specializes in developing advanced software solutions, providing IT consulting services, and managing large-scale Telecom infrastructure projects for various industries.

Situation Overview

Over the past five years, AInS Corp has heavily relied on cloud services from leading providers such as AWS, Azure, and Google Cloud to support its analytics for data-driven projects. However, the company has faced escalating operating costs associated with these cloud services, including increasing data storage fees, data transfer costs, and premium service charges. Additionally, AInS Corp has experienced rising costs related to professional services, such as consultancy fees and managed services needed to optimize and maintain their cloud infrastructure.

This situation is rather ironic as, in the beginning, the board was not really supportive of the move to Cloud. Only now, the rising costs have proved the AInS board did have it right in the first place.

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Objectives

• Cost Reduction: Significantly reduce both the operating costs and professional services expenses associated with cloud services.
• Control: Regain control over Analytic infrastructure, data management, and service delivery.
• Performance: Ensure that system performance and reliability are maintained or improved.
• Compliance: Ensure continued compliance with industry regulations and data protection laws.
• Operational Efficiency: Streamline operations and develop in-house expertise to reduce dependency on external service providers.

Challenges that must be taken into account

1. Capital Expenditure: The initial investment required for setting up on-premises infrastructure is substantial.
2. Skill Gap: Training existing staff or hiring new personnel with the necessary skills to manage on-premises systems.
3. Migration Risks: Potential risks of downtime and data loss during the migration process.
4. Scalability: Ensuring the on-premises solution can scale to meet future business needs.
5. Complex Transition: Managing the transition from a cloud-based environment to an on-premises setup, especially with diverse workloads.

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Strategy and Framework

1. Assessment and Planning

• Cost-Benefit Analysis: Conduct a detailed analysis comparing the long-term costs of cloud services and professional fees with the costs of on-premises infrastructure and internal skill development. This includes evaluating the total cost of ownership (TCO) for both options.
• Workload Analysis: Evaluate and categorize workloads to determine the most suitable candidates for on-premises migration. Prioritize workloads that are stable, predictable, and less prone to rapid scaling needs.
• Stakeholder Engagement: Involve key stakeholders from IT, finance, and business units to gather requirements and ensure alignment with strategic goals. Create a governance framework to oversee the migration process.

2. Design and Architecture

• Infrastructure Design: Design a scalable, high-performance on-premises infrastructure that can support current and future workloads. Consider redundancy, disaster recovery, and high availability in the design.
• Technology Selection: Choose appropriate hardware (servers, storage, networking) and software solutions (virtualization, management tools). Evaluate vendors and products based on performance, reliability, and cost-effectiveness.
• Security and Compliance: Develop a robust security framework to ensure data protection and compliance with relevant regulations. Implement necessary controls, such as encryption, access management, and regular audits.

3. Implementation Plan

• Phased Approach: Plan a phased migration to minimize disruption, starting with non-critical applications and services. Develop a detailed timeline and project plan for each phase.
• Resource Allocation: Allocate necessary resources, including budget, personnel, and time, for each phase of the migration. Ensure that both IT and business units are adequately resourced.
• Training Program: Implement a comprehensive training program to develop in-house expertise for managing the new on-premises infrastructure. This includes technical training and certifications for IT staff.

4. Execution

• Pilot Migration: Conduct a pilot migration to test processes, identify issues, and make necessary adjustments. Select a non-critical system or service for the pilot to mitigate risks.
• Full Migration: Execute the migration in phases, continuously monitoring progress and performance. Utilize migration tools and techniques to ensure data integrity and minimize downtime. Communicate regularly with stakeholders to keep them informed of progress.
• Validation: Rigorously test the migrated systems to ensure they meet performance, security, and compliance requirements. Perform acceptance testing with end-users to validate functionality and performance.

5. Post-Migration Support

• Performance Monitoring: Implement continuous monitoring of system performance to ensure stability and reliability. Use monitoring tools to track key performance indicators (KPIs) and detect issues early.
• Maintenance and Updates: Establish a regular maintenance schedule for hardware and software updates. Develop standard operating procedures (SOPs) for routine maintenance tasks.
• Internal Skill Development: Focus on continuous training and development to reduce dependency on external professional services. Encourage staff to pursue relevant certifications and professional development opportunities.
• Feedback Mechanism: Create a feedback loop with stakeholders to address any issues promptly and improve system performance. Conduct regular reviews and updates to the migration strategy based on feedback and lessons learned.

Results and Benefits to aim for

1. Cost Savings

• Achieved a 30% reduction in overall operating costs and a 20% reduction in professional services expenses within the first year post-migration. The initial capital expenditure was offset by the significant reduction in recurring costs.

2. Enhanced Control and Security

• Improved control over Analytic infrastructure and data, leading to enhanced security and compliance with industry regulations. Reduced dependency on external consultants for security and compliance management.

3. Performance Improvement

• Maintained or improved system performance, with faster data access and reduced latency. Enhanced user experience and satisfaction.

4. Scalability and Flexibility

• Designed a scalable infrastructure capable of supporting future growth and evolving business needs. Implemented scalable solutions that can be easily expanded as required.

5. Skill Development

• Reduced reliance on external professional services by developing in-house expertise, leading to long-term cost savings and increased operational efficiency. Enhanced staff skills and capabilities.

6. Stakeholder Satisfaction

• Increased satisfaction among stakeholders due to cost savings, improved performance, and enhanced control over IT resources. Positive feedback from clients and business units on the improved service delivery.

Conclusion

AInS Corp successfully navigated the transition from cloud services to on-premises infrastructure; effectively managing rising operating and professional services costs is not an easy task. However, through careful planning, phased execution, and continuous skill development, the company can achieve its objectives and position itself for future growth and stability. The strategic migration has provided AInS Corp with greater control, reduced costs, and a more efficient and secure Analytics environment.

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Framework Summary

1. Assessment and Planning

• Cost-Benefit Analysis
• Workload Analysis
• Stakeholder Engagement

2. Design and Architecture

• Infrastructure Design
• Technology Selection
• Security and Compliance

3. Implementation Plan

• Phased Approach
• Resource Allocation
• Training Program

4. Execution

• Pilot Migration
• Full Migration
• Validation

5. Post-Migration Support

• Performance Monitoring
• Maintenance and Updates
• Internal Skill Development
• Feedback Mechanism

From talking to many companies, I believe more companies are looking to migrate down from the Cloud. I hope that this structured approach can help promote a smooth and successful migration from cloud services to on-premises infrastructure, enabling your company to manage costs effectively while maintaining high performance and compliance standards. Also,

for sustainable computing, it is more straightforward to compute energy consumption of onpremise analytic stack.