From VMware to AWS-Native: How Service Stream Cut Cloud Costs by 15% in Four Months
Achieving 15% Cost Reduction and Modernisation with AWS-Native Migration
Impact Highlights
Significant Cost Savings
Reduced annual AWS spend by approximately 15% by eliminating VMware licensing and associated platform overhead.
Near-Zero Downtime Migration
Leveraged AWS Application Migration Service (MGN) to execute a seamless migration with continuous replication and minimal business disruption during cutover.
Enhanced Scalability and Flexibility
Enabled on-demand compute and storage scaling through AWS-native infrastructure, allowing the company to adjust resources based on workload needs dynamically.
Modernisation Enablement
Unlocked access to AWS cloud-native services, including automation, DevOps tools, and managed infrastructure, driving innovation and faster delivery of digital services.
Improved Security and Governance
Strengthened network security, identity management, and operational visibility through AWS Systems Manager, Security Groups, and centralised monitoring tools.
20% Faster Migration Execution
Accelerated migration timelines through automated, wave-based execution and continuous replication.
Operational Efficiency and Resilience
Achieved a more agile and resilient cloud environment, simplifying management while ensuring high availability and performance across critical workloads.
Overview
A leading provider of essential infrastructure services across Australia faced mounting cost and modernisation challenges with its critical workloads running on VMware Cloud on AWS (VMC-A). The impending expiry of VMware licenses, coupled with high Windows Datacenter licensing and platform overhead, necessitated a rapid, strategic exit to a fully AWS-native environment. SourceFuse delivered a comprehensive, automated, and phased migration to Amazon EC2, successfully transitioning all critical workloads, achieving ~20% faster migration timelines, a 15% reduction in annual AWS spend, and unlocking the potential for future cloud-native modernisation.
The Opportunity
The company was running its mission-critical systems on VMC-A, a reliable but increasingly cost-prohibitive and restrictive hybrid cloud solution. The platform’s rigidity constrained the adoption of cost-effective AWS cloud-native services. The core opportunity was driven by five critical challenges:
High Operational Costs:
Substantial overhead from Windows Datacenter licensing and the VMC platform.
Modernisation Constraints:
VMC limited the direct use of AWS services like serverless, managed databases, and automation tools.
Inflexible Scaling:
Compute and storage scaling were tied to a rigid VMware infrastructure.
Hybrid Cloud Complexity:
Difficulties in network management and security policy enforcement.
Licensing Uncertainty:
Impending VMware license changes post-Broadcom acquisition and threatened future cost stability.
These challenges led to strained budgets and inefficient resource utilisation, hindering the company’s ability to adopt the agility and innovation of the AWS Cloud.
The Solution
SourceFuse and Service Stream collaboratively executed a comprehensive, phased migration program to transition the company’s workloads from VMC-A to a fully AWS-native cloud environment. The engagement was delivered as a true partnership, combining SourceFuse’s AWS migration expertise with Service Stream’s deep application knowledge and operational ownership. The approach focused on minimising risk, ensuring business continuity, and maximising long-term business value.
The migration program was meticulously planned and jointly executed:
In-Depth Assessment:
SourceFuse and Service Stream worked together to conduct a detailed discovery and assessment using AWS Application Discovery Service (ADS) and VMware tools. Service Stream provided critical insights into application dependencies, usage patterns, and business priorities, enabling accurate right-sizing and migration sequencing.
Automated Planning:
Leveraging AWS Transform for VMware, the joint team developed dependency-based, wave-oriented migration plans across Development, Test/UAT, and Production environments. Service Stream played a key role in validating wave groupings and defining business validation criteria.
Seamless Execution:
Using AWS Application Migration Service (MGN) as the core migration engine, workloads were replicated from VMC-A with near-zero downtime through continuous block-level replication. Migration activities were closely coordinated with Service Stream to align with operational windows and minimise impact.
Automated Configuration:
Automation was implemented for Active Directory (AD) configuration using AWS Systems Manager, ensuring seamless integration of migrated EC2 instances into the new domain structure. Service Stream’s infrastructure and application teams actively participated in validation, testing, and access verification.
Phased Cutover:
A structured, incremental cutover approach was jointly managed across Development, Test & UAT, and Production waves. Service Stream conducted application validation and formal sign-offs at each phase, ensuring functional integrity and business readiness before progressing.
Optimisation and Handover:
Post-migration, SourceFuse and Service Stream collaborated on workload right-sizing and performance tuning to improve cost efficiency. Monitoring configurations were established, and comprehensive runbooks, knowledge transfer sessions, and training were delivered to enable Service Stream’s teams to confidently operate the new AWS-native environment.
Key Solution Components
Phased, Wave-Based Migration:
Structured and jointly governed cutovers allowed incremental validation of performance and functionality.
Near-Zero Downtime Execution:
Achieved through AWS MGN continuous replication, combined with coordinated, business-aligned cutover planning.
Automated AD Integration:
Streamlined reconfiguration of AD domain controllers and domain-joining of migrated instances through automation and Service Stream validation.
Cost Optimisation Focus:
Proactive EC2 right-sizing, elimination of VMware platform overhead, and structured decommissioning of the VMC-A environment, driven through collaborative review and optimisation workshops.
AWS Services Used
- Networking: AWS Transit Gateway, Amazon VPC
- Compute & Scalability: Amazon EC2
- Migration & Transfer: AWS Application Discovery Service (ADS), AWS Application Migration Service (MGN), AWS Transform for VMware
- Security & Compliance: Security Groups, NACL
- Governance & Management: AWS Systems Manager
Technology Highlights
Migration from VMware Cloud on AWS to AWS-native infrastructure
Automated, low-risk migration with minimal downtime
Optimised cloud environment for cost, performance, and scalability
Integrated monitoring and governance for post-migration efficiency
The Impact
The migration transformed the company’s infrastructure, delivering immediate and long-term business value:
Optimised Cost Reduction:
By moving off VMC and reducing Windows Datacenter licensing overhead, the company achieved approximately 15% savings on annual AWS spend.
Enhanced Scalability:
The cloud-native environment provides the agility for dynamic scaling of compute resources, meeting unpredictable workload demands without over-provisioning.
Faster, Low-Risk Migration:
Achieved approximately 20% improvement in migration speed using AWS MGN, enabling automated execution with near-zero downtime and uninterrupted business operations.
Modernisation Readiness:
The company is now positioned to leverage advanced AWS cloud-native services and DevOps tools, accelerating innovation and business agility.
Team Empowerment:
Detailed documentation and training built internal capabilities for managing and optimising the new environment sustainably.
Looking Ahead
With the successful migration completed, the company now operates a resilient, cost-optimised, and scalable AWS-Native platform. Looking ahead, they can leverage the foundational work to pursue deeper modernisation initiatives using cloud-native services like managed databases, serverless compute, and advanced data analytics, ensuring the infrastructure remains a competitive asset for future business growth and innovation.
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