Discussing TCO in 2024

Before this year, I had never taken the Cloud Foundations exam.? Years ago, I had gotten the original five exams and had renewed my professional certification several times and grabbed a couple of specialties.? ?I had for years recommended and tutored sales and marketing individuals on the test never really going too deep into what was on the test, instead focusing on the main tenets of AWS whether that be Well Architected design and planning or TCO talking points. This year due to maintaining our Advanced Tier Partnership with AWS, it became a good idea for me to grab that Cloud Foundation.? In a moment of what might be considered foolhardiness I decided to just walk in and take the test. ?While I passed, I think there were some things that gave me pause as I ran through the test. ?The questions around TCO definitely took the longest for me to answer.? And it made me think about how we talk about TCO today.[KC1]?

TCO stands for total cost of ownership.? This includes the cost of buying the technical equipment and hosting it, as well as the staff needed to maintain and build that technical stack.? The intent of cloud savings was to enable CAPEX costs to be spread over time through OPEX and save money.? For years, that has been one of the main talking points around cloud migration, using the reliability and scalability of the cloud and its tools to lower your total TCO.? What makes AWS so appealing is the idea of right-scaling your infrastructure for demand with limited lock in while getting your platform and app developers within the right framework.? Infrastructure as a code with tools like CodePipeline and Cloud Formation allow you to bring your platform into a software development lifecycle (SDLC) and CI/CD motion.? However, many companies are finding their Cloud Environment?is not living up to these savings.? Why?? There are three main reasons:

Not Re-platforming After a Cloud Migration

I repeatedly see companies move to the cloud in a lift-and-shift motion neglecting optimization.? It’s like moving from a studio apartment to a house?and unpacking everything into one room.? Moving VMs from one platform to another does not take advantage of the services AWS offers.? This includes proper tagging to make sure you create a billback model for clients and internal departments.? Creating proper resource grouping helps with FinOps and the definition of roles and policies to lock down your security in a least privilege model.

Not Adopting a Platform Lifecycle

“Digital transformation” as a catch-all term often diminishes how integral DevOps is to properly assessing the value of the cloud. Calling up services and platforms within a single API call is one advantage of using AWS. This gives users version control over a golden image for a virtual server, virtual workgroup, data center, or a full virtual global infrastructure stack, if needed. This is what makes AWS so attractive to SaaS companies—you can version control your entire global infrastructure, starting with Cloudfront.

Not Having the Proper OCM for Your IT Team.

Training, Sandboxing, and Skill Management are crucial to extract the proper value out of AWS.? AWS is not a static product, with new services continually released throughout the year.? However, it’s difficult to hire for something as vast as “cloud skills.” Some tasks in the cloud are only done once or twice as a part of your Enterprise journey. Other cloud tasks are constantly adapting, such as FinOps or Data Governance.? To get the proper TCO, it’s essential to work with your team, understand how to optimize their skill set and ability to learn, utilize effective training techniques, and partner with an expert consultant.? Also, upskilling helps lower team turnover.? Sandboxes, collaborative consultants, and training, including acquiring AWS certifications, can help bridge that gap.

OCM may be the most important of TCO.? Real value comes from cross-training a team and enabling them to take advantage of AWS’ tools and services.? Think of it as a migration for your Enterprise IT team.? As data and workloads become more and more crucial to business goals, there’s huge value in being able to have IT step out of the server closet and into a proactive service role within your organization.

If you are looking for additional help or guidance, please reach out to us at Oxford Global Resources.?Our partnership with AWS grants us the knowledge, expertise, and ability to help you implement AWS solutions, no matter where you’re at in your cloud journey.