How should CIOs/CTOs manage cost concerns when proposing a modernization project?

Modernization programs need to be strategized for the following three parameters in order to contain cost and drive maximum value:
1. Rationalize & consolidate while modernize
2. Go for right disposition - Rehost, refactor, re-design
3. Pick the righ landing zone - IaaS, PaaS, CaaS or FaaS

Finally apply architectural principals (WAF) to FinOps.

Cheers

I concur with the comments that have already been shared by my colleagues and would add that I always want to know what legacy technology/capability we are turning off to help make the budget close on the project.

I would manage cost concerns by conducting a detailed cost-benefit analysis, implementing the project in phases, negotiating with vendors for the best rates, utilizing internal resources, maintaining strict budget management, communicating transparently with stakeholders, and leveraging cost-efficient solutions like cloud and open-source software. This approach helps balance the initial investment with long-term value and risk management.

For any investment, a RoI calculation is highly recommended. Especially when this also includes a certain risk mitigation (e.g. CyberSecurity enhancements), the figures should be clear and no doubts are supposed to remain.
In addition, if compliance requirements (e.g. European NIS2 directive) require a certain modernization, any additional discussions and re-discussions most often only cause delays and unnecessary cost increases.

Focus on business outcomes achieved, and risk reduction as well. Also articulate long-term cost reduction over short-term expenditure