Cost and benefit of your cloud application on Azure - Part 1

While exploring posibilities of cloud development I often stumble upon a lot of questions and some fragmented answers. It is an exiting project in which we turn existing on premise and partly classic hosted functionality into a cloud service. Main concern and focus on these kind of developments for our company for me is the viability of the business model. The way to investigate this is from a platform architecture and design patterns angle that influence the resulting application in several ways.

Part of that is of course cost, but this has to be considered in combination with technical issues as scalability, flexibility, performance and security for instance. Techonolgical innovation is business innovation and thus expanding opportunities, rather than just operations. Again, Azure is NOT about technology.
Moving an application to the cloud can be (seem to be) pretty straight forward. Starting with an existing application you can map several functionalities to this pure cloud based version of that application. Two basic considerations of this quick and dirty approach come to mind.

1. If not designed for the cloud, the application will not benefit from the promisses of the cloud. So flexibility and scalability can be less than expected.
2. Second when not properly designed the cost of the Cloud application can be unpredictably high. Promises that Cloud applications should be able to not only move from CAPEX to OPEX but potential have a better TCO will never meet expectations.

So for me is looking at the development of a new business model also overseeing the technical implications and map these on the current knowledge and competences of our development teams. When moving from the technical design and development of the application, the business model as a whole is designed too. This means a very broad look on the possibilities, market requirements, added value, deployment and delivery models, development roadmaps, pricing etc. All these considerations have to be mapped on the available resources and channels. When driving new business models an extra complexity is the changing knowledge and competences needed to run this business.