Cloud Migration: A Case Study of Migrating an Enterprise IT System to IaaS (1002.3492v1)

Abstract: This case study illustrates the potential benefits and risks associated with the migration of an IT system in the oil & gas industry from an in-house data center to Amazon EC2 from a broad variety of stakeholder perspectives across the enterprise, thus transcending the typical, yet narrow, financial and technical analysis offered by providers. Our results show that the system infrastructure in the case study would have cost 37% less over 5 years on EC2, and using cloud computing could have potentially eliminated 21% of the support calls for this system. These findings seem significant enough to call for a migration of the system to the cloud but our stakeholder impact analysis revealed that there are significant risks associated with this. Whilst the benefits of using the cloud are attractive, we argue that it is important that enterprise decision-makers consider the overall organizational implications of the changes brought about with cloud computing to avoid implementing local optimizations at the cost of organization-wide performance.

• The paper reveals a 37% reduction in infrastructure costs and a 21% drop in support calls following the migration to Amazon EC2.
• The paper employs a comprehensive analysis integrating financial metrics with organizational and socio-technical factors to evaluate cloud adoption.
• The paper highlights potential risks to service quality and internal operations, advocating for balanced risk management in cloud migration.

Cloud Migration: An Analysis of Migrating Enterprise IT Systems to IaaS

This paper presents an in-depth case paper of an enterprise IT system's migration from an in-house data center to Amazon EC2, by examining the multi-faceted impact of this transition on financial, socio-technical, and organizational dimensions within the oil and gas industry. Unlike prevailing studies that predominantly focus on the technical and financial aspects, this paper emphasizes the broader stakeholder perspectives, thus offering a more comprehensive evaluation relevant to enterprise decision-makers.

Key Findings

The paper's analysis indicates a 37% reduction in system infrastructure costs over five years when deployed on Amazon EC2 compared to maintaining it in an in-house data center. Furthermore, it suggests that transitioning to cloud computing could potentially eliminate 21% of support calls, primarily related to hardware issues managed by Amazon’s infrastructure. Notably, these quantitative findings highlight substantial cost savings and operational efficiencies, advocating for cloud migration. However, the stakeholder impact analysis unveils critical risks associated with this transition, portraying a complex picture for enterprises contemplating such migrations.

Implications for Practice and Theory

From a practical perspective, the findings underline the dual allure and caution of cloud migration. Financially enticing savings are clear, yet they necessitate a careful consideration of organizational implications, as underscored by potential risks to service quality and internal operational dynamics. Organizations need to assess not just the immediate cost benefits but also the changes in work satisfaction, control over service delivery, and the dependence on third-party providers which could affect long-term strategic interests. The paper thus argues for a balanced approach, considering risk management and strategic alignment with organizational goals.

Theoretically, this case paper contributes to the ongoing discourse on cloud computing by broadening the scope of evaluation to include organizational impacts and stakeholder perspectives. This holistic consideration is vital to understanding the full spectrum of effects cloud migration may have on enterprise IT operations and management. It challenges the often singular focus on financial metrics and encourages a nuanced understanding of cloud's transformative potential.

Speculation on Future Developments

Looking forward, the paper suggests that future research should aim to quantify not just direct infrastructure cost savings, but also the secondary effects on support staff and customer satisfaction. Additionally, there is a need to empirically validate the net benefits for system integrators within cloud ecosystems. While preliminary insights suggest enhanced profitability from lessening hardware concerns and focusing on value-added services, the full implications remain an open area for investigation.

Moreover, as cloud computing technologies and market dynamics evolve, continuous updates to stakeholder impact analyses will be critical. This includes adapting to changes in pricing models, technology advancements, and emerging regulatory landscapes, all of which could influence the strategic calculus of cloud migration.

In conclusion, strategic decisions about cloud migration should integrate financial analysis with a deep understanding of organizational impacts to optimize both local and organization-wide performance. This paper serves as a foundation for such evaluations, offering critical insights for enterprises navigating the complexities of cloud adoption. Further research could extend these insights to other industries and cloud providers, thus broadening the understanding of cloud computing's role in modern IT ecosystems.