How to Structure IT infrastructure financial model for Platform modernization & AWS Cloud Migration

 Brief overview of Structuring Finance Model for AWS Cloud Migration

Many established IT-enabled businesses may have adopted information and process management systems that are now outdated. These aging systems have led to significant maintenance costs in current data centers, as well as complex security and scalability challenges that are increasingly difficult to overcome.

Objectives and goals of the financial model

Current IT Infrastructure Costs

• Hardware costs
• Software license costs
• Maintenance costs
• Personnel costs
• Other costs (e.g., data center rent, utilities, etc.)

AWS Cloud Costs

• Compute costs (e.g., EC2 instances)
• Storage costs (e.g., S3 buckets)
• Network costs (e.g., VPC)
• Other costs (e.g., data transfer, RDS, etc.)
• Migration Costs
• One-time costs (e.g., migration tools, consulting, etc.)
• Personnel costs (e.g., training, migration, etc.)
• Total Cost of Ownership (TCO) Comparison

Compare the TCO of the current IT infrastructure to the TCO of the AWS Cloud solution over a defined period (e.g., 3 years).

Take into account all relevant cost factors, such as hardware, software, maintenance, personnel, and migration costs.

Cost Savings Analysis

• Identify areas of potential cost savings by migrating to AWS Cloud, such as reduced hardware and software costs, reduced maintenance costs, and reduced personnel costs.
• Quantify the potential cost savings.
• Business Benefits Analysis
• Identify potential business benefits of migrating to AWS Cloud, such as increased agility, scalability, and flexibility.
• Quantify the potential business benefits, if possible.
• Sensitivity Analysis

Perform sensitivity analysis to test the impact of different assumptions and scenarios on the TCO of the AWS Cloud solution.

Recommendations

Provide recommendations based on the financial analysis, including whether or not to migrate to AWS Cloud and any potential optimizations or adjustments to the proposed AWS Cloud solution.

Conclusion

Summarize the findings of the financial model and provide a high-level overview of the benefits and risks of migrating to AWS Cloud.