So your $8K savings represent a puny 3.1% savings of your compute spend, and a much smaller percentage of your overall spend when you include storage and networking. Do you see the pattern here? Savings are always good, but the true savings will NOT come from using cloud as a “rent-a-server,” or from spinning up servers for only 1 minute instead of the full hour. You should absolutely expect your cloud infrastructure provider to charge you less as they realize additional cost ben- efits from economies of scale. You should also expect your cloud provider to offer a simple price structure that a normal person without a Ph.D. can understand. And you should not fall for the gimmick of “look, we now charge you per second” if all of your servers run 24×7. The True Cost Savings So what does this all mean? Savings from vendor price reductions and charging for smaller increments are byproducts of technology innovation and econo- mies of scale, and should be expected. True savings on the cloud will come from the following: 30 | THE DOPPLER | WINTER 2018 1. Conducting a proper analysis of your applica- tion portfolio estate, and understanding how well those applications are suited for the cloud 2. Designing the most appropriate application architecture that considers interconnectivity, resiliency, high availability AND takes advantage of cloud-native features and PaaS capabilities 3. Performing a true TCO of your cloud estate and basing that TCO on the proposed cloud architecture If you haven’t performed the three steps above (whether you haven’t started your cloud migration yet or have simply moved some applications via the “lift-and-shift” approach), you have not done yourself justice in figuring out what your true costs–and best savings–could be. The following three aspects are core to our Cloud Adoption Program methodology by which we help our clients realize significant advantages (cost, tech- nology and business value) from public cloud. Let’s take a look at each one in more detail.