As An IT Analyst For Ballot Online, A Voting Company
As An It Analyst For Ballot Online A Company Providing Voting Solutio
As an IT analyst for Ballot Online, a company providing voting solutions to a global client base, you are working to convince the organization to move its infrastructure to a public cloud. With the growth the company is experiencing, and the internal data centers maxed out, you want to get the executives on board with moving to a public cloud rather than trying to expand the current infrastructure. The objective of this first assignment was to present an economic analysis of the implication of moving to a cloud model. Economic means cost. what it will cost to go -vs- stay. Present the cost impact of staying on premise -vs- moving to the cloud, preferably with some tables and charts that clearly show the comparison. One or two pages is all that is necessary. Using the tabulations attached to this question.
Paper For Above instruction
The decision to migrate an organization’s IT infrastructure to a public cloud environment involves careful economic analysis. For Ballot Online, a provider of voting solutions with expanding infrastructure needs, the primary goal is to compare the costs linked to maintaining on-premises systems versus transitioning to a cloud-based infrastructure. This analysis considers initial setup costs, ongoing operational expenses, and potential cost savings, along with strategic advantages that influence the organization’s decision-making process.
The on-premises infrastructure for Ballot Online involves capital expenditures (CapEx) such as purchasing servers, networking equipment, data center facilities, and ongoing maintenance and upgrades. These costs are typically fixed and recurring annually, including power, cooling, hardware repairs, and IT staffing. According to the tabulations attached, the initial setup cost for maintaining existing premises totals approximately $1.2 million, with annual operational costs around $400,000. These figures account for hardware depreciation, maintenance contracts, energy consumption, and IT personnel salaries.
In contrast, migrating to a public cloud offers an OpEx model, characterized by pay-as-you-go pricing, where the organization pays only for the resources utilized. The initial migration costs include data transfer, setup, and configuration, estimated at about $200,000. Monthly cloud service costs, based on expected usage volumes, are projected at $35,000, summing to $420,000 annually. This model eliminates the need for capital investment in hardware and reduces physical infrastructure costs, shifting expenditure toward scalable and predictable operational costs.
Cost comparison tables illustrate these differences clearly:
| Cost Category | On-premises | Cloud Migration |
|---|---|---|
| Initial Setup Costs | $1,200,000 | $200,000 |
| Annual Operating Costs | $400,000 | $420,000 |
| Total Cost Over 3 Years | $2,400,000 + depreciation | $1,260,000 + cloud service fees |
A chart comparing these figures visually emphasizes the cost savings and flexibility of moving to the cloud. While the on-premises setup involves a sizable upfront investment and higher fixed costs, the cloud offers lower initial costs and scalable expenses aligned with usage, reducing financial risk.
Beyond direct costs, cloud migration provides strategic benefits such as improved scalability, reduced hardware maintenance, enhanced security offerings, and faster deployment times. These qualitative factors contribute to overall organizational agility, which might not be directly reflected in immediate financial comparisons but are crucial for long-term success.
In conclusion, based on the cost analysis, transitioning to a public cloud is financially advantageous over a multi-year period, offering lower total costs, flexibility, and strategic benefits. This economic case supports moving forward with the cloud migration plan, enabling Ballot Online to sustain growth and innovation efficiently.
References
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