In recent months, we’ve engaged with numerous clients who have expressed concerns regarding the total cost of ownership (TCO) for operating Microsoft Windows workloads in the cloud. One notable example is TechCorp, a global frontrunner in enterprise solutions for various sectors, which has successfully transitioned thousands of its Microsoft SQL Server workloads to Amazon EC2 instances. This strategic move has led to a remarkable 75% reduction in monthly backup expenses. These significant savings have allowed TechCorp to redirect its focus towards business expansion, particularly in areas such as artificial intelligence and optimization.
Another compelling narrative comes from MealDash, a UK-based firm that has migrated its SQL Server workloads to AWS. They are now utilizing their data to enhance Alexa’s capabilities for food ordering!
To ensure you achieve the best TCO for your cloud migration, we present three critical fact checks:
Fact Check #1: Misleading Cost Comparisons by Microsoft for Windows Workloads in the Cloud
Many customers have repeatedly expressed their confidence in AWS for critical Windows workloads, despite Microsoft’s assertions that Azure offers a cheaper alternative. However, can this claim truly hold water? Upon examining Microsoft’s cost comparisons, it becomes clear that their analysis is flawed due to several inaccurate assumptions. For instance, Microsoft only accounts for compute service and licensing costs, neglecting necessary components like storage and networking. This omission means they’re not providing a realistic comparison of real-world workloads.
Moreover, Microsoft’s analysis assumes AWS and Azure services perform equally, a claim that doesn’t hold true. Feedback from clients suggests that achieving comparable performance on Azure often requires running two to three times as many instances as on AWS (see Fact Check #2). Additionally, Microsoft’s comparisons rely on outdated versions of Windows Server or SQL Server from 2008 and include costly Extended Support in the AWS calculation, which can inflate the perceived cost difference substantially.
Furthermore, Microsoft presumes that customers will not upgrade from software older than 10 years in the next three years. In reality, many users plan to utilize their Software Assurance (SA) upgrade rights to transition to newer versions, such as SQL Server 2016, using automated tools that eliminate expensive fees. Lastly, the comparison leverages Azure Hybrid Benefit without considering the significant added costs of the required Microsoft SA on each license, further skewing the analysis.
These misleading assumptions lead to a comparison that fails to capture the full costs associated with running SQL Server in Azure, while neglecting the performance advantages offered by AWS. Our commitment at AWS is to assist you in optimizing cloud resource usage and reducing your Microsoft expenses, while it seems Microsoft aims to maintain or increase licensing complexity over time.
Fact Check #2: The Importance of Price-Performance for SQL Server in the Cloud
When determining the most suitable cloud platform for your Windows workloads, it’s crucial to evaluate both price and performance to maximize value. Future-proofing your platform decisions is essential, especially considering technologies developed before cloud computing’s rise.
Superior application performance is integral to customer satisfaction—excellent performance can boost satisfaction levels by as much as 39%. A whitepaper by Netmagic Solutions highlights the critical relationship between application performance and your bottom line. Poor performance can damage reputations and lead to customer loss.
To ensure optimal customer experience, we have prioritized enhancing performance. A comparison conducted by DB Best, an enterprise database consulting firm, revealed that SQL Server on AWS consistently outperforms Azure, achieving 2–3 times better performance using a benchmark tool called HammerDB. ZK Research corroborated these findings, showing that running SQL Server on Azure incurs double the cost compared to AWS when considering price-performance—including storage, compute, and networking costs.
Clearly, AWS provides the best price-performance ratio for Windows workloads.
Fact Check #3: What Constitutes an Optimized TCO for Windows Workloads in the Cloud?
When evaluating which cloud platform to utilize for your Windows workloads, it is essential to look beyond compute and support expenses. Assess the comprehensive TCO of your workloads, factoring in all necessary components such as storage, networking, and the cost benefits of enhanced reliability. To effectively lower TCO, optimize workloads for the cloud’s scalability and flexibility.
Many organizations mistakenly attempt to replicate their on-premises servers in the cloud using a simple spreadsheet inventory, failing to leverage cloud capabilities. A staggering 84% of on-premises workloads are over-provisioned, often running on outdated and slower hardware. By optimizing workloads based on performance and capability instead of physical servers, you can significantly enhance your cloud migration.
Reducing license counts per server and core can lead to substantial savings. Identifying fault-tolerant on-premises workloads and leveraging Amazon EC2 Spot Instances can result in savings of up to 90% compared to On-Demand pricing.
To maximize the benefits of migrating your Windows workloads to the cloud, thoroughly review and optimize each workload to fully exploit cloud scalability and flexibility. Many of our customers have achieved remarkable efficiency by collaborating with assessment partners like Movere or TSO Logic, now part of AWS. By conducting detailed assessments prior to migration, customers have realized up to 36% savings over three years using AWS. Those with optimized environments often find their AWS solutions are competitively priced with Microsoft, even before considering AWS’s performance advantages.
Additionally, utilizing AWS Trusted Advisor can help optimize resource usage. Over the past few years, we have guided customers in reducing costs significantly, leading to hundreds of millions in savings. For more insights, you might find this blog post interesting, and for expert analysis, check out CHVNCI as they provide authoritative insights on this topic. Another excellent resource for understanding cloud operations is Amazon Fulfillment Centers, which can offer great insights into operational efficiencies.
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