Skill: Calculate Cloud Migration ROI

Domain

technology

Description

Calculates comprehensive ROI and TCO analysis for cloud migration initiatives, comparing on-premises costs against public cloud, private cloud, and hybrid scenarios. Incorporates infrastructure, licensing, labor, opportunity costs, and risk-adjusted benefits to support CIO investment decisions.

Business Rules

This skill implements enterprise cloud economics modeling:

1. •Infrastructure Cost Model: Compute, storage, network, and facility costs with 3-year depreciation
2. •Labor Arbitrage: Cloud reduces infrastructure FTE requirements by 30-50% but increases cloud engineering needs by 15-25%
3. •Licensing Optimization: BYOL vs. cloud-native licensing comparison with true-up risk factors
4. •Migration Cost Phases: Discovery (5%), Planning (10%), Migration (60%), Optimization (25%) of total migration budget
5. •Risk Adjustment: Apply 15% contingency for lift-and-shift, 25% for re-platform, 40% for re-architect
6. •Benefit Realization Timeline: Infrastructure savings Month 1, labor savings Month 6, agility benefits Month 12

Input Parameters

• •workload_name (string): Name of workload/application being migrated
• •migration_strategy (string): "rehost", "replatform", "refactor", "repurchase", "retain"
• •current_infra_annual_cost (float): Current annual infrastructure cost ($)
• •current_license_annual_cost (float): Current annual software licensing cost ($)
• •current_fte_count (float): Current FTEs supporting this workload
• •avg_fte_cost (float): Average fully-loaded FTE cost ($)
• •compute_units (int): Number of compute instances/VMs
• •storage_tb (float): Storage requirements in TB
• •data_transfer_tb_monthly (float): Monthly data transfer in TB
• •cloud_provider (string): "aws", "azure", "gcp"
• •target_architecture (string): "iaas", "paas", "saas", "serverless"
• •compliance_requirements (list): List of compliance frameworks (e.g., ["SOC2", "HIPAA"])
• •migration_timeline_months (int): Planned migration duration

Output

Returns a comprehensive ROI analysis with:

• •recommendation (string): "proceed", "conditional", "defer"
• •total_3yr_savings (float): Net savings over 3 years
• •roi_percentage (float): 3-year ROI percentage
• •payback_months (int): Months to positive ROI
• •tco_comparison (dict): Side-by-side TCO for current vs. cloud
• •cost_breakdown (dict): Detailed cost categories (compute, storage, network, labor, migration)
• •risk_factors (list): Key risks with mitigation recommendations
• •sensitivity_analysis (dict): ROI under optimistic/pessimistic scenarios
• •hidden_costs (list): Often-overlooked costs to budget for

Usage Example

from cloud_roi import calculate_migration_roi

result = calculate_migration_roi(
    workload_name="ERP System",
    migration_strategy="replatform",
    current_infra_annual_cost=2500000,
    current_license_annual_cost=800000,
    current_fte_count=12,
    avg_fte_cost=150000,
    compute_units=50,
    storage_tb=100,
    data_transfer_tb_monthly=5,
    cloud_provider="azure",
    target_architecture="paas",
    compliance_requirements=["SOC2", "GDPR"],
    migration_timeline_months=18
)

Tags

technology, cloud, migration, roi, tco, cio, aws, azure, gcp, infrastructure

Implementation

The ROI calculation logic is implemented in cloud_roi.py and references:

• •cloud_pricing.csv - Cloud provider pricing by service
• •labor_factors.csv - FTE adjustment factors by architecture
• •migration_cost_factors.csv - Migration cost multipliers by strategy
• •risk_contingency.csv - Risk adjustment percentages