The annual cost of operating the current system as-is. Include all costs that would disappear if the migration were complete today.
| Cost Item | Annual Amount | Source / Assumption |
|---|---|---|
| Infrastructure maintenance & support | $ | |
| Security patching & vulnerability management labor | $ | |
| Downtime cost (avg hours × cost per hour) | $ | |
| Compliance labor tied to current architecture | $ | |
| Engineering time spent on maintenance vs. innovation | $ | |
| Run-Rate Annual Total | $ |
What is the probability of a significant negative event in the next 12–24 months if nothing changes? Attach a dollar estimate to each risk.
| Risk Event | Probability (12 mo) | Estimated Cost if it Occurs | Expected Annual Loss |
|---|---|---|---|
| Major unplanned outage (>4 hours) | % | $ | $ |
| Security breach / ransomware | % | $ | $ |
| Regulatory / compliance failure | % | $ | $ |
| Vendor end-of-support (unpatched vulnerability) | % | $ | $ |
| Hardware failure (no DR coverage) | % | $ | $ |
| Risk Subtotal (Expected Annual Loss) | $ |
What cannot be built, shipped, or sold because engineering capacity is absorbed by the current system?
| Question | Answer |
|---|---|
| How many engineers hold undocumented knowledge of the current system? | |
| What is the estimated probability of losing one of them in 18 months? | |
| What is the replacement cost (recruiting + ramp + lost productivity)? | $ |
| What does that person's departure do to the migration timeline? |
Assemble all four components into a single, jargon-free paragraph for executive presentation. The summary should make clear that "doing nothing" has a measurable, growing annual cost.
| Annual run-rate cost of status quo | $ |
| Annual risk exposure (expected loss) | $ |
| Annual opportunity cost | $ |
| Total Annual Cost of Inaction | $ |
| Cost of Inaction over 3 years | $ |
| Azure migration investment (from TCO) | $ |
| Investment vs. CoI over 3 years | $ |