Cloud calculator

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Google cloud, AWS and Azure move aggressively and show customers the benefit of moving all services to their cloud. Loads of tools are included in the offering and the customers can do more or less the same thing as they do with Red Hat products. We all know it is not "the same" but there is a discussion we need to have when it comes to cost. Does someone have a calculator where it is possible to bring out ROI numbers, compare cloud this with that versus data center etc. Why install OpenShift on for example AWS when all the tools are already included in the AWS offering and what are the real cost?

I have seen the Red Hat slides with fancy numbers and 523% ROI and bla. bla. but I would like to see the actual calculations that led up to these numbers or the customers will suspect Harry Potter has been involved.

Does anyone have any form of calculator we can use ?
Grateful for any feedback.
//Joachim

Responses

Hi Joachim,

Due to sensitivity of a report, I cannot disclose the source, but an organisation I am familiar with did a comprehensive study of public cloud benefits and it turned out the cost was not one of them, especially in high-use scenarios.

Cloud has some benefits, no question about it, but if your driving force is cost, you might think very carefully about it.

Let me give you one example of how one of the largest Australian banks went from massive "outsourcing" to AWS back to private cloud. It is Commonwealth Bank of Australia (CBA). It made Cash Net Profit After Tax from continuing operations of $4,676 million (that is $4.676 billion), up 1.7 per cent in first half of 2019, so it is not a "poor" company.

Bill shock is regarded as the major reason for companies to shift from the cloud to an alternative strategy:

The Commonwealth Bank switched from the public cloud to a private cloud approach after discovering cost-benefits dissipated in relation to scaling. Spokesperson for the Bank told CRN Australia:

“Once you get past 1000 servers and you’re running at a high utilization rate, the economics quickly flip on you and they don’t make sense.”

a) In May 2010, the news was published about CBA and AWS co-operation:

https://www.theaustralian.com.au/business/technology/commonwealth-bank-works-with-amazon-to-set-up-cloud-based-operation-in-australia/news-story/d48929f6d260bb9485db812d4a1ab4b2

b) In November 2012, CBA announced alleged huge savings with public cloud:

https://www.itnews.com.au/news/harte-decries-public-cloud-concerns-as-garbage-322785

c) In June 2017, news was announced about public cloud costs pushing CBA to OpenStack:

https://www.itnews.com.au/news/public-cloud-costs-push-cba-to-openstack-464239

d) In August 2018, CBA announced going Infrastructure-As-Code and stated that private cloud was cheaper than public cloud, with dual use Azure and AWS for same workloads only:

https://www.itnews.com.au/news/cbas-new-private-cloud-nears-completion-moves-to-infrastructure-as-code-511657

Another example:

The managing director of Australian IT firm Commulynx told CRN Australia about a midmarket finance organisation that needed the data back from its hosted email archive. The company was charged US$30,000 for the return of its own data.

Regards,

Dusan Baljevic (amateur radio VK2COT)

PS. Statement of my late father:

"If you think that anybody can love you more than you love yourself without expecting benefits, you are wrong!"