In an earlier blog, we highlighted several reasons for SMEs to choose Microsoft Azure as their cloud infrastructure provider, with huge cost savings probably the most convincing one. But how real are these savings? And how do you get there? Tyneso calculated it for one of their clients. Curious about how they could save 90.000 euro over 3 years by moving to Microsoft Azure?
Who? Belgian market leader in niche segment with over 100 employees and more than 30.000 customers.
ICT need? To serve their growing customer base with the latest technology and with excellent support, they needed a solid infrastructure which is always available and easily accessible. This is why a fully redundant infrastructure is ideal, with a remote second cluster for data recovery purposes.
On-premise requirements? For our customer to obtain a fully redundant set-up capable of handling all customer requests, online processing and mobile applications, they needed 2 on-premise clusters, each consisting of 3 nodes and 72 cores, a full backup solution, a NAS and 30TB of offsite storage, and a networking infrastructure containing 2 25GB switches per cluster. On top of that, they need to take the cost of hosting into account.
Cost of on-premise? A detailed calculation showed that the total cost for such infrastructure spread over a 5-year depreciation period would amount to 355.720 euro, or 5.929 euro per month. (Price of hardware material is an indication, as prices rapidly climb.)
Spread over a 3-year depreciation period (more advisable, given the rapid pace of change in this area), it would cost our client 278.593 euro, or 7.739 euro per month.
Microsoft Azure as cloud alternative? Tyneso drafted a proposal for a completely comparable and equally reliable solution in the cloud. After a detailed analysis and thorough investigation of the minimum requirements, Tyneso suggested a solution consisting of 2 interconnected cloud environments over a solid Microsoft Cloud Network, guaranteeing the same level of reaction speed and accessibility as the on-premise solution.
Cost of Microsoft Azure? Tyneso’s proposal for this cloud equivalent of the on-premise infrastructure came with a monthly price tag of 5.191 euro.
Compared to the on-premise solution with a 5-year depreciation scenario, this amounts to a monthly cost reduction of 738 euro, or 44.280 euro over the entire 5-year period.
Compared to the on-premise solution with a 3-year depreciation period, however, the monthly cost reduction grows to 2.548 euro per month, or 91.728 euro over the 3-year period. This second scenario suits the comparison better, as the Microsoft Azure cloud infrastructure is constantly being renewed with the most advanced hardware as well.
Regardless of which depreciation period you use for your on-premise infrastructure, you will find that moving to the cloud is a very sound business decision. Next to the impact on the bottom line, you can dedicate your IT staff to more innovative and value-adding projects, which in return will contribute to the company’s financial health.
Tyneso: the partner who makes the difference
If Azure is so much more cost-effective, why then do so many organisations believe that it is more expensive than on-premise? Possibly because they haven’t picked the right cloud partner. At Tyneso, we know mid-sized enterprises don’t have the same IT budget as multinationals. Still, we can make the Azure shoe fit your business. We assemble the perfect Azure package, tailored to your organisation. The right server, the right long-term commitment, the right license can downsize your Azure invoice by 60%. We size your Azure till it fits. Perfectly. This way Azure is affordable for every mid-sized enterprise.
Looking for the right Azure fit? Contact us today!
Has this customer success inspired you to go cloud, but you don’t know how? Don’t worry, Tyneso will guide you!
Contact us and we’ll assess your business needs.