The migration cost variables are adjusted in the third table. In the first two lines, you can add external cost (per month) for training and/or support.
Estimated migration cost is the cost of a migration engineer to move a VM with workload to Azure. USD 200 cost per VM is a market standard for inhouse migration. Specialized migration companies offer prices for migrating VMs at USD 50 per VM or even lower.
23
Scenarios TAB offers the possibility to develop 3 financial migration scenarios to bring over your customer workloads to Azure. Scenarios provide
insights on effects of migration speed on Cost developments overtime, additional cumulative cashflow and, if applicable, Microsoft Incentives
(dependent on committed Azure consumptiontarget). To understand the use and purpose of Scenarios,watch https://youtu.be/XGInIfzkPAU.
In the first table of Scenarios, different variables for setting the scenarios are defined. We advise to base the first 2 scenarios on a migration effort by
in-house staff, plus external expertise if needed, where rule of thumb is migrating maximum 100 VMs per month. Use Scenario 3 for a radical
approach, by outsourcing migration to a specialized company, using tools in combination with a ‘migration factory’ in a low-cost setting with
migration up to 1,000 VMs per month. For Scenario 3, the lead time before the migration project is longer than in Scenario 1 and 2.
In the second table, adjust the variables that have to do with remaining liabilities and book
values after the Datacenter contract ends, based on the depreciation period the customer
is using and thinking smart about the remaining book-values.
If the Azure cost are substantial lower than the Customer Cost, it could be more beneficial
to close the current DC, pay a penalty and end with higher book values.
Scenarios
In the fourth table, the Microsoft Incentive program variables can be managed, if applicable for your case. If unsure, check with your Microsoft rep.
Azure Consumption Target is set on a trial-and-error basis.
Select Datacenter Migration Program to generate Incentive Payout charts to visualize potential payout against targets.
Adjust the values to understand incentive payout
potential for available Azure Migration Program.
In the last table, the results of 3 scenarios are summarized in terms of major KPIs. There can be up to 3 graphs per scenario to assist with visualizing
your Scenario building - cost development, cumulative cash flow and lastly, incentive payout (as applicable).