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The Enterprise Strategy Group (ESG) conducted an economic value study on the top-level benefits and cost savings that businesses can achieve when migrating their on-premises PostgreSQL instances to Azure Database for PostgreSQL, a fully managed Postgres database service. ESG is an independent strategy firm that provides market intelligence and actionable insights to the global IT community. Aviv Kaufmann, Senior Economic Validation Analyst and author of the report, completed a quantitative economic analysis of Azure Database for PostgreSQL and determined that customers reported savings and benefits in the following four categories: 1) elimination of costs, 2) operational cost savings, 3) improved business agility, and 4) improved developer experience.
Note: The primary source for this blog is ESG’s report, Analyzing the Economic Benefit of Migrating from On-premises Instances to Azure DB for PostgreSQL.
PostgreSQL is a powerful open source object-relational database with over 30 years of active development and has earned its place as a reliable, high-performance, and feature-rich database. PostgreSQL is commonly developers’ top pick for modern transactional, analytical, geospatial, and real time application development because of its SQL-like interface, adaptability, and developer-centric environment.
ESG conducted a technology spending intentions survey in November 2021 and found that the most important objective for digital transformation initiatives for businesses is to become more operationally efficient.
With digital transformation initiatives rippling across various industries, businesses are under pressure to develop and update their tools and applications faster than ever, requiring successful digital transformation to modern technologies and workflows.
One increasingly common cost savings practice in businesses today is for developers to take on the responsibility for database configuration and administration tasks since they are already managing the production deployments. For developers, the responsibility to be an app developer and the database administrator is shifting their focus away from developing the next generation apps & services, which can slow down digital transformation initiatives.
Organizations are shifting away from maintaining traditional on-premises infrastructures and accelerating their transition to the cloud to become more mature data-driven businesses.
Azure Database for PostgreSQL is a fully managed database as a service offering that allows developers to focus on what they do best—developing next generation applications and services.
Azure Database for PostgreSQL eliminates cost, increases operational savings, improves business agility, and improves the developers’ experience
Microsoft commissioned ESG to complete a quantitative economic analysis and 3-year modeled scenario to evaluate the economic value propositions and benefits that businesses can achieve when migrating to Azure Database for PostgreSQL.
ESG economic analysis found that organizations can achieve significant savings and benefits in the following categories: elimination of cost, operational cost savings, improved business agility, and improved developer experience.
Elimination of Cost
In the analysis, ESG found that organizations were able to greatly reduce or even eliminate certain costs by migrating on-premises PostgreSQL relational databases to Azure by eliminating hardware infrastructure-related costs and third-party support.
“It’s opened a huge number of doors because we don’t have to think about the restrictions of the infrastructure.”
ESG found that operational savings were the most significant driving factor behind businesses choosing Azure Database for PostgreSQL. By migrating to Azure Database for PostgreSQL, customers reporting saving time on DBA and maintenance related tasks, and simplified security and availability.
“Using Azure Database for PostgreSQL Flexible Server, we feel confident that we have unlimited scalability across both our data processing and storage infrastructure; we’re able to operate on fewer cores, and the data cycles we run are far more streamlined.”
Improved Business Agility
Azure Database for PostgreSQL helped transform businesses, modernize applications, and scale operations by providing organizations the opportunity to build and scale solutions faster. Businesses reported faster time to value, faster migration & modernization efforts, increased flexibility and agility, and improved application performance.
“We took an instance of the database, copied it to Azure, then spun it up in the Azure managed PostgreSQL environment. It happened flawlessly in two hours….The services and utilities, plus technical support, from Microsoft made all the difference.”
Improved Developer Experience
After migrating to Azure Database for PostgreSQL, developers no longer have to manage the on-prem database and shared significant improvements in developer productivity, increased developer velocity, easier integration of Azure services, and leveraging the open source ecosystem with more freedom.
“The tool and technology roadmap on Azure was very much in sync and aligned with our thinking and need.”
ESG found that Azure Database for PostgreSQL:
- Provided 164% return on investment
- 84% reduction in the operational overhead
- 71% lower cost of PostgreSQL administration resulting in $11.6 million additional revenue from faster time to market
- Up to a 62% lower total cost over three years to host, secure and protect PostgreSQL instances.
- 21% increase in overall development capacity
Moreover, the interviews and economic value study from ESG validated that customers who migrated and modernized their on-premises PostgreSQL databases to Azure Database for PostgreSQL have achieved significant cost savings and operational benefits while accelerating application development, delivery capabilities, and improving business agility.
For additional detail, refer to ESG’s full report, Analyzing the Economic Benefit of Migrating from On-prem Instances to Azure DB for PostgreSQL.
If you’re ready to learn more, explore these resources:
- Start free with Azure Database for PostgreSQL flexible server.
- Learn more about Azure Database for PostgreSQL.
- Read the Azure Database for PostgreSQL documentation.
- Migrate to Azure Database for PostgreSQL.
ESG’s Economic Validation process is a proven method for understanding, validating, quantifying, and modeling the economic value propositions of products and leverages ESG’s core competencies in market analysis, forward-looking research, and technical/economic validation. ESG conducted in-depth interviews with end-users to better understand the experiences customers have had when migrating on-premises and cloud VM installations of PostgreSQL instances to Azure and learn how Azure Database for PostgreSQL has provided savings and benefits to their organizations. The qualitative and quantitative findings were used as the basis for a simple economic model comparing the solutions.