SMB Playbook for IT spend reduction on Azure — Part 3

Amit Sinha
3 min readOct 16, 2022

This is the third (and final) part of a 3-part series on spend reduction opportunities for SMBs in Azure. The first post explained how to see costs in Azure and the second post provided some short term and long term areas of cost savings.

The final angle to consider is on-premise costs. The operational costs of running a data centre for legacy applications has increased, whilst the risks associated with not modernising the applications have remained the same. Considering the migration of these applications to help reduce on-premise costs and start the modernisation journey could support in longer-term cost savings.

This post will look at services available to help easily assess and migrate these applications to Azure.

Quick Start Options

Web application migration

On-premise hosted web applications can be easily considered for migration. Their compatibility could be quickly assessed through the Application Service Migration Assistant. Web .NET applications and Java applications running on Apache Tomcat have migration tooling which can support the compatibility and migration of the web application to Azure.

Database migration

Similarly to web application migration, the Database Migration Assistant can support in identifying any compatibility issues as you look to upgrade your database. There are migration guides available for different database technologies including both open source and vendor technologies.

Once the source and target technologies are identified, the Azure Database Migration Service can support in the overall migration.

Azure Hybrid Benefit

If a migration is occurring, consider taking advantage of Azure Hybrid Benefit. This is a licensing benefit which helps reduce the cost of running workloads in the cloud by allowing on-premise Software Assurance-enabled Windows Server and SQL Server licenses to be used on Azure. This now extends to RedHat and SUSE Linux too.

Best practices

As mentioned previously, Microsoft have the CAF which includes the ALZ. The ALZ helps organisations get started on Azure. It has taken into consideration key design patterns which allow for scalability, security, networking, identity and governance. Included in the ALZ is a blueprinted migration landing zone which helps an organisation start small and expand. It is highly encouraged to use this approach to ensure the longevity of the cloud architecture.

Conclusion

Cost savings can be achieved through a number of approaches, depending on the services being utilised. These can go across Azure with the applications running in the cloud today as well as using Azure to support cost reduction activities.

When looking at Azure, ensure that cost management and advisory services are being used to surface areas of potential reduction. Then consider key additional activities which can be undertaken to further reduce overall costs. It is worth noting that the setup of key cost management services in Azure will help surface opportunities for cost reduction which go beyond those stated in this blog series.

Also considering on-premise costs and tools to support moving across to the cloud. With Azure, tools are available to help migrate to the cloud and to modernise applications for the platform.

If you are considering Azure or would like to know more, get in touch with your Microsoft or Partner representative.

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Amit Sinha

CTO — Private Equity at Microsoft | Digital Transformation & Technology | Leadership & DEI | Tech Innovation