Server Migration Cost Estimation

DataBridge is migrating 12 on-premise servers to the cloud. The IT manager must estimate total migration cost using decomposition — manually, before any cloud pricing calculator is opened.

# Aplly.xyz Case Study Submission

## Title
Server Migration Cost Estimation

## Type
Technology/IT

## Difficulty
Intermediate

## Estimated Time
60 minutes

## Overview
DataBridge is migrating 12 on-premise servers to the cloud. The IT manager must estimate total migration cost using decomposition — manually, before any cloud pricing calculator is opened.

## Case Details

Function Focus: Manual estimation, cost decomposition, unit-cost scaling

Scenario:
DataBridge's CFO needs a migration budget by end of week. The manager has current on-premise costs by server, cloud provider's per-unit pricing (compute, storage, egress), and a migration overhead multiplier from a similar past migration. They must produce a defendable estimate using structured decomposition — not a cloud calculator.

Dataset Structure:
- Server inventory: 12 rows, each with Server ID, Role, vCPU, RAM (GB), Storage (GB), Monthly Egress (GB)
- Cloud pricing: per-vCPU-hour rate, per-GB-RAM-hour rate, per-GB-storage-month rate, per-GB-egress rate
- Migration overhead: 2.3x multiplier (applied to first-month operating cost) based on a similar past lift-and-shift
- Current monthly on-premise cost per server (for comparison)

Tasks:
1. Decompose the total cost into three components: compute, storage, and egress — compute each by hand as a subtotal
2. For each component, write out the unit math explicitly (e.g., "12 vCPU × 730 hours/month × $0.042 = $367.92")
3. Apply the 2.3x migration overhead multiplier only to the first-month cost
4. Produce a 12-month total cost projection alongside the current 12-month on-premise cost, and state the delta
5. Only after submitting your manual estimate, run the same numbers through a cloud calculator or spreadsheet and note any discrepancy

Expected Output:
A one-page cost memo showing: per-server unit math, component subtotals, overhead-adjusted first-month cost, 12-month projection, on-premise comparison delta, and a post-hoc discrepancy note.

Evaluation Criteria:
Correct unit decomposition (not a single global number), explicit unit math on every line item, correct application of the overhead multiplier to first-month only, and quality of the delta analysis between manual and tool-assisted results.

## Data Sources

| Server ID | Role | vCPU | RAM (GB) | Storage (GB) | Monthly Egress (GB) | Current On-Prem Cost ($/mo) |
|---|---|---|---|---|---|---|
| DB-01 | Database Primary | 16 | 64 | 2,000 | 500 | 3,200 |
| DB-02 | Database Replica | 8 | 32 | 2,000 | 200 | 1,900 |
| WEB-01 | Web Server | 4 | 16 | 200 | 2,000 | 850 |
| WEB-02 | Web Server | 4 | 16 | 200 | 2,000 | 850 |
| WEB-03 | Web Server | 4 | 16 | 200 | 2,000 | 850 |
| API-01 | API Gateway | 8 | 32 | 500 | 4,000 | 1,600 |
| API-02 | API Gateway | 8 | 32 | 500 | 4,000 | 1,600 |
| CACHE-01 | Redis Cache | 4 | 16 | 100 | 50 | 600 |
| CACHE-02 | Redis Cache | 4 | 16 | 100 | 50 | 600 |
| WORKER-01 | Job Worker | 8 | 32 | 300 | 800 | 1,400 |
| WORKER-02 | Job Worker | 8 | 32 | 300 | 800 | 1,400 |
| MONITOR-01 | Monitoring | 2 | 8 | 500 | 100 | 450 |

Cloud Pricing:
- vCPU: $0.042/hour
- RAM: $0.014/hour/GB
- Storage: $0.08/GB/month
- Egress: $0.09/GB

Migration Overhead Multiplier: 2.3x (applied to first-month operating cost only)

## Solution Frameworks
Fermi-style cost decomposition, unit economics, sensitivity analysis

## Solver Guidance & Tutorials
Link to: "Cost Estimation Without a Calculator" tutorial

## What You'll Learn
- Structured cost decomposition under time pressure
- Unit economics reasoning for cloud migration decisions
- Self-auditing manual estimates against tool-assisted answers

## Tags
cost estimation, cloud migration, unit economics, infrastructure planning

## Registration Links
- Register as Solver
- Register as Evaluator

| Server ID | Role | vCPU | RAM (GB) | Storage (GB) | Monthly Egress (GB) | Current On-Prem Cost ($/mo) |
|---|---|---|---|---|---|---|
| DB-01 | Database Primary | 16 | 64 | 2,000 | 500 | 3,200 |
| DB-02 | Database Replica | 8 | 32 | 2,000 | 200 | 1,900 |
| WEB-01 | Web Server | 4 | 16 | 200 | 2,000 | 850 |
| WEB-02 | Web Server | 4 | 16 | 200 | 2,000 | 850 |
| WEB-03 | Web Server | 4 | 16 | 200 | 2,000 | 850 |
| API-01 | API Gateway | 8 | 32 | 500 | 4,000 | 1,600 |
| API-02 | API Gateway | 8 | 32 | 500 | 4,000 | 1,600 |
| CACHE-01 | Redis Cache | 4 | 16 | 100 | 50 | 600 |
| CACHE-02 | Redis Cache | 4 | 16 | 100 | 50 | 600 |
| WORKER-01 | Job Worker | 8 | 32 | 300 | 800 | 1,400 |
| WORKER-02 | Job Worker | 8 | 32 | 300 | 800 | 1,400 |
| MONITOR-01 | Monitoring | 2 | 8 | 500 | 100 | 450 |

Cloud Pricing:
- vCPU: $0.042/hour
- RAM: $0.014/hour/GB
- Storage: $0.08/GB/month
- Egress: $0.09/GB

Migration Overhead Multiplier: 2.3x (applied to first-month operating cost only)

Fermi-style cost decomposition, unit economics, sensitivity analysis