Cost Saving and Business Benefits of Microsoft Azure Platform-As-A Service

Over the past few years, PaaS offerings have matured very significantly and become very cost competitive when compared with an IaaS environment. Microsoft Azure PaaS has become one of the robust offerings in this space. Forrester Consulting was commissioned by Microsoft Consulting to do a detailed analysis of this offering to establish the ROI when you move to Azure PaaS. This blog briefly summarizes the Forrester report on the potential return on investment (ROI) that enterprises may realize by moving their application development and deployment to Azure platform-as-a-service (PaaS).

Source:  Forrester, The Total Economic Impact™ Of Microsoft Azure Platform-As-A Service Cost Savings And Business Benefits Enabled By Azure PaaS

Forrester lists benefits enabled by Microsoft Azure PaaS

  1. IT administration resource savings– The significant time spent on server patching, networking setup, firewall configuration, and many other server-related tasks are now included with Azure PaaS. This helps to save the IT administration cost of $ 132,240* in the first year and allows the organization to focus on application innovation, not administrative tasks.
  2. Improve service delivery time-to-market - The organization could delivery applications running on Azure platform in half the time than usual which lead to increase in profits by $376,441* in the first year, which means revenue could be earned more quickly.
  3. Reduction in application testing and development time / application– With Azure PaaS, developers can take advantage of integrated tools and, in the click of a button, testers can create new testing environments that exactly match the organization’s development and production environments thereby improving developer productivity and adding savings up to $108,458* in the first year.
  4. Reduction in issue identification and repair resource cost: An Employee facing mobile application on Azure PaaS helps to save significant time and resource cost up to $98,550* in employee issue identification and repair resource cost.
  5. Application- enabled organization savings – Customer self-service and sales enablement applications are easier to develop and contribute to profit of $168,750* in the first year from improved sales representative’s performance and direct customer sales.
  6. IT resource saving cost – The organization can save hiring cost up to $697,000 per year for five IT administrators and two database administrators within the first year to meet the demand and service by enabling Azure PaaS.

 

Source:  Forrester, The Total Economic Impact™ Of Microsoft Azure Platform-As-A Service Cost Savings And Business Benefits Enabled By Azure PaaS

Forrester lists the following cost experience by the organization in enabling the Microsoft Azure PaaS

  1. Initial Implementation costs of $101,850* and ongoing resource and other costs related to Azure PaaS of $73,500* in the first year. Additionally, Organization can expect some training and management costs therewith.
  2. Significantly administration, development, and testing costs can be saved with Azure PaaS
  3. Azure subscription and support fees of $191,400* in the first year.
  4. The estimated annual fees are billed based on a per-use basis.

The ROI is even higher when you move from an On-Premise setup to PaaS.

* Forrester created a representative organization based on the composite results of the interviews with the customer organizations: a medium-size business with 100 applications now supported by Azure PaaS (and more planned each year).

Microsoft Azure is an open and flexible cloud platform that enables organizations to quickly build, deploy, and manage applications across a global network of Microsoft-managed data centres, supporting deployment of applications close to customers and users in addition to on-premises and hybrid options.

Microsoft Azure services like App Service, Service Fabric, Azure Functions, and Cloud Services provide customers with a comprehensive PaaS application platform for building, deploying, and managing applications of all kinds, from the simplest website to the most complex business solution.

For more information visit: https://goo.gl/6hNtCp

Want to read more? https://azure.microsoft.com/en-in/resources/total-economic-impact-of-microsoft-azure-paas/

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