Most customers think that Azure is more expensive
Azure migration cases are only won by the correct application of Azure hybrid benefits in combination with other Optimization benefits. Such as right sizing, snoozing and the application reserved instances
Microsoft places a lot of emphasis on application modernization as the main motivation for persuading customers to migrate to Azure. But in the hundreds of cases we have done over the past three years we learned that the decisive motivation to move strategically to Azure the factor is price.
Most customers thinks Azure is more expensive
That makes selling an Azure migrate case so difficult, because more than 90% of customers believe that Azure is much more expensive than a legacy hosting environment. And in the first instance it is. In a ‘lift & shift’ scenario, where the OS licenses are purchased including the VM. (PAYG pricing). In that case, the average price of an Azure environment is 42% more expensive than the legacy environment. And that is where many quotations fail, because the customer is not or insufficiently convinced to look further into the optimization of the Azure costs.
The accompanying graph shows the different steps that need to be taken to bring the price of Azure down substantially. The values mentioned are average price levels that we have aggregated over hundreds of cases. You could think of these numbers as a benchmark. As an attainable goal.
Convincing customers Azure can be cheaper
The biggest challenge is to convince the customer in the feasibility of these steps to achieve an Azure cost reduction. The most important thing is to be transparent about this. To show the customer what the options are from which he / she can choose and to make motivated choices together. Because the customer participates in making the choices, this increases the chance that they will agree with your proposal.
The Smart Azure Calculator facilitates this process from start to finish. This application makes it possible to make these savings costs together with the customer and immediately provide insight into the impact.
Would you even like to try this and experience how powerful this approach is? Send me an email herb@thecloudlab.com and I prepare the case for you so you can see how it works.