The provisioning of traditional IT resources is different in the cloud. A one-for-one (or like-for-like) migration approach often leads to unnecessary cost.
Cloud requires a far different approach to resource allocation to support the same needs and user experiences as a premised based technology solution.
Why it should cost less to run workloads in the cloud?
The key difference is that with premised based solutions your physical infrastructure (that you lease or pay for up front) must come packed with the power to support peak needs at any or all times. With cloud you build your budget to support lowest common denominator needs and ramp up resources in real time to support peaks, but only when you need to.
For virtual resources, unit pricing as well, is also much lower. Take a look at the following budget example as a case in point.
Traditional IT Budget
Cloud Optimized Budget
To learn more about cloud budgeting and cost control read our Guide to Controlling and Optimizing Costs in the Cloud.
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