Microsoft Azure results in up to EUR 90,000 in cost savings for Belgian distributor.
Let’s crunch some numbers
In an earlier blog, we highlighted several reasons for SMEs to opt for Microsoft Azure as their cloud infrastructure provider. Huge cost savings is probably the most convincing one. But how real are these savings? And how can they be achieved? Tyneso calculated the savings for one specific client. Curious about how they managed to save EUR 90,000 over three years by moving to Microsoft Azure?
Who? Belgian market leader in niche segment with over 100 employees and more than 30.000 customers.
ICT needs? To be able to serve a growing customer base with the latest technology and excellent support, the company needed a solid infrastructure that was always available and easily accessible. A fully redundant infrastructure was ideal, with a remote second cluster for data recovery purposes.
On-premise requirements? For our customer to be assured of a fully redundant set-up capable of handling all customer requests, online processing and mobile applications, they required two on-premise clusters, each with three nodes and 72 cores, a full backup solution, an NAS and 30TB of offsite storage and a networking infrastructure containing two 25GB switches per cluster. Hosting costs were a consideration as well.
Cost of on-premise?
Detailed calculations showed that the total cost for such infrastructure spread over a five-year depreciation period would be EUR 355,720, or EUR 5,929 per month. (These prices are indicative, as hardware prices are subject to rapid change.)
Over a three-year depreciation period (realistic given the rapid pace of change in this area), this would end up costing our client EUR 278,593, or EUR 7,739 per month.
Microsoft Azure as a cloud alternative? Tyneso drafted a proposal for a fully equivalent and equally reliable solution in the cloud. After detailed analysis and a thorough investigation of minimum requirements, Tyneso suggested a solution with two cloud environments interconnected over a solid Microsoft Cloud Network that guaranteed the same speed of response and accessibility as for the on-premise solution.
Cost of Microsoft Azure?
Tyneso’s proposal for this cloud equivalent to the on-premise infrastructure would cost EUR 5,191 per month.
Compared to the on-premise solution with a five-year depreciation scenario, this amounts to a monthly cost reduction of EUR 738, or EUR 44,280 over the entire five-year period.
If the on-premise solution has a three-year depreciation period, however, the monthly cost reduction increases to EUR 2,548 per month, or EUR 91,728 over three years. This second scenario is a better comparison, as Microsoft Azure’s cloud infrastructure is also constantly updated with the most advanced hardware.
Conclusion?
Regardless of which depreciation period you use for your on-premise infrastructure, you can see that moving to the cloud is a sound business decision. In addition to the impact on your bottom line, your IT staff can spend more time on innovative and value-adding projects, further contributing to your company’s financial health.
Tyneso: the partner who makes a difference
If Azure is so much more cost-effective, why are so many organisations convinced it will be more expensive than on-premise? Perhaps they haven’t found the right cloud partner. At Tyneso, we know mid-sized enterprises don’t have the same IT budget as multinationals. We can make the Azure shoe fit your business. We will put together the perfect Azure package, tailored to your organisation. With the right server, the right long-term commitment and the right license, you can reduce your Azure bill by 60%. We will adapt your Azure till it fits. Perfectly. In this way, Azure becomes affordable for every mid-sized enterprise.
Looking for the right Azure fit? Contact us today!
This customer success has inspired you to move to the cloud, but you don’t know how? No worries, Tyneso is here to guide you!
Contact us and have us assess your business needs.