The Cavan Group takes the guesswork out of budget development for hosting solutions. We develop costs based on actual workload resources and develop a comparative analysis for different hosting scenarios. We will compare costs for self hosted, public cloud, managed cloud or colocation options including migration costs, professional services, WAN and other charges.
ROI estimating of cloud computing can be difficult and confusing. It's not just about opex versus capex, there are a number of less tangible considerations also, such as agility, time to market, etc. Also, deploying some percentage of your workloads from self hosted environment to the cloud may result in little or no savings on your current hosting costs (rent, power, cooling, network) as those tend to stay relatively fixed. In fact, there is often an increase in expenditure as companies incur sunk costs like cloud direct connect, training, and hiring specialized cloud talent.