Value architecture migration option

Value an irreversible architecture migration as a finite-horizon, signal-contingent optimal-stopping policy that cannot see future information; compare its expected and tail cost with never migrating, every fixed migration date, and a perfect-information ceiling, then expose the option value of waiting for real evidence.

What it's for

Turns migrate-now-or-later into an auditable real option: wait only when information has measurable value, migrate only on evidence available at that date, and show the cost of rigid timing.

What you give it

Inputs split into evidence read from your connected systems, calibration your team owns, and numerical controls that affect precision but never the result's meaning.

Field Type Role Required
discount_rate_per_period number ≥ -0.99, ≤ 10 Your calibration Optional
max_detail_rows integer ≥ 1, ≤ 500 Numerical control Optional
maximum_cvar_cost number ≥ 0 Your calibration Optional
minimum_expected_savings_vs_never number Your calibration Optional
minimum_option_value number ≥ 0 Your calibration Optional
scenarios array of objects (7 fields) ≥ 2 items Evidence Yes
tail_probability number > 0, ≤ 0.5 Your calibration Optional

Each scenarios record

Field Type Required
current_architecture_costs_by_period array of number (≥ 2 items) Yes
id string (non-empty) Yes
migrated_architecture_costs_by_period array of number (≥ 2 items) Yes
migration_costs_by_period array of number (≥ 2 items) Yes
migration_downtime_loss_by_period array of number (≥ 2 items) Yes
probability number (≥ 0, ≤ 1) Yes
signal_path array of string (≥ 2 items) Yes
Example input
{
  "minimum_option_value": 1,
  "scenarios": [
    {
      "current_architecture_costs_by_period": [
        10,
        10
      ],
      "id": "migration-pays",
      "migrated_architecture_costs_by_period": [
        2,
        2
      ],
      "migration_costs_by_period": [
        5,
        1
      ],
      "migration_downtime_loss_by_period": [
        0,
        0
      ],
      "probability": 0.5,
      "signal_path": [
        "unknown",
        "favorable"
      ]
    },
    {
      "current_architecture_costs_by_period": [
        10,
        10
      ],
      "id": "migration-does-not-pay",
      "migrated_architecture_costs_by_period": [
        12,
        12
      ],
      "migration_costs_by_period": [
        5,
        1
      ],
      "migration_downtime_loss_by_period": [
        0,
        0

Truncated for display — the full payload is 54 lines.

What you get back

This is the actual output of running the example above — computed by the same function the platform calls, not an illustration.

Example output
{
  "configuration": {
    "discount_rate_per_period": 0,
    "signal_history_is_refining_by_construction": true,
    "tail_probability": 0.5
  },
  "decision": "preserve_signal_contingent_migration_option",
  "failed_gates": [],
  "guardrails": [
    "The policy can use only the submitted signal history available by that period; future outcomes, post-migration evidence, and reconstructed hindsight labels cannot move backward in the tree.",
    "Current and migrated run cost, migration spend, downtime loss, horizon, discounting, feasibility and signal release require comparable architecture/finance counterfactuals and local out-of-time calibration.",
    "The option covers one irreversible migration and represented futures; parallel migration, rollback, technical failure, security approval, tax, capacity and vendor behavior require explicit modeling or separate stress tests.",
    "A supported option is not migration authorization and cannot be converted into a team, vendor, architect, or employee performance judgment."
  ],
  "method": "signal_tree_architecture_migration_optimal_stopping_v1",
  "policy_nodes": [
    {
      "action": "wait",
      "conditional_expected_cost_from_node": 16.5,
      "node_probability": 1,
      "period": 0,
      "signal_history": [
        "unknown"
      ]
    },
    {
      "action": "wait",
      "conditional_expected_cost_from_node": 10,
      "node_probability": 0.5,
      "period": 1,
      "signal_history": [
        "unknown",
        "adverse"
      ]
    },
    {
      "action": "migrate",
      "conditional_expected_cost_from_node": 3,
      "node_probability": 0.5,
      "period": 1,
      "signal_history": [
        "unknown",
        "favorable"
      ]

Truncated for display — the full payload is 82 lines.

How it works

Constrained optimization — Pick the best feasible option under real limits — budget, headcount, dependencies, capacity — rather than ranking a list and hoping it fits.

  1. 1 Construct coherent future scenarios containing a refining signal path and comparable current-run, migrated-run, migration, and downtime costs by period, with immutable signal release times.
  2. 2 Work backward through the signal tree, forcing all scenarios with the same observed history to take the same wait-or-migrate action and valuing migration from the current period without double-counting sunk run costs.
  3. 3 Replay the policy scenario by scenario, reconcile it to the dynamic program, compare it with never, every fixed date and perfect information, calculate CVaR, and apply governed savings, option-value, and tail-cost gates.

Before you trust it

Every tool in the catalog ships with the conditions under which its answer is meaningful — and the conditions under which it should abstain instead of guessing.

Assumptions & guardrails

  • Objectives use commensurable locally governed value units, constraints reflect real feasibility, and uncertainty covers plausible adverse inputs.
  • Signals are genuinely available before each decision and refine rather than rewrite history; all cost paths use the same scope, horizon, currency, discounting and counterfactual; one irreversible migration adequately represents the decision.
  • The recommendation is optimal only for its stated objective, feasible set, evidence, and solver guarantee; it is not a universal management optimum.
  • The policy is conditional on represented scenarios and excludes unstated rollback, parallel migration, security, tax, capacity and vendor responses; it is not migration approval or a judgment about a team, architect, supplier, or employee.

Minimum evidence

  • scenarios: at least 2 rows/items

How to validate it

Backtest the chosen action against simple feasible baselines on held-out scenarios, sweep costs/constraints/risk tolerance, and require constraint feasibility under adverse inputs.

Calibrating it to your org

Same for everyone

The mathematical kernel, validation rules, method version, and JSON output semantics are organization-independent; no tenant-trained coefficients or company benchmark is embedded in the function.

Specific to you

  • point-in-time architecture/FinOps scenario tree joining workload, reliability, migration feasibility, fully loaded cost and signal-release lineage so histories contain only evidence observable before each decision
  • architecture perimeter and irreversible action, horizon/cadence/currency, discounting, cost recognition, scenario law, signal availability and refinement, counterfactual evidence, expected-savings/option-value/CVaR gates, tail probability, and architecture/finance/security authority

Calibration workflow

  1. 1 Define the management decision, target outcome, aggregate unit, privacy boundary, cadence, and prediction/intervention horizon for this organization.
  2. 2 Build a tenant-scoped historical cohort using only information available before each prediction or decision; preserve zero periods, censoring, assignment probabilities, and unresolved outcomes when the method requires them.
  3. 3 Estimate statistical parameters on training history, but obtain costs, utilities, risk tolerance, practical-effect thresholds, capacity, and policy constraints from accountable decision owners.
  4. 4 Validate on later time windows or held-out aggregate units at the deployment grain, against a simple baseline and the function-specific validation strategy.
  5. 5 Deploy only if the returned decision clears evidence, overlap, calibration, robustness, and guardrail checks; warning, unsupported, schema-gap, and fallback decisions are abstentions.
  6. 6 Monitor realized outcomes, data drift, coverage, and decision regret; recalibrate at a governed cadence or after a detected regime/definition change, never merely because a stakeholder dislikes the result.

Call it from your AI

You don't wire up 388 tools in your MCP client. The GitRevio MCP server exposes 18 tools, three of which let an agent search the catalog, read a tool's schema, and run it — so the assistant finds this one on its own.

gitrevio_capabilities_search
  { "q": "value an irreversible architecture migration as" }
  → finds "value_architecture_migration_option"

gitrevio_capability_describe
  { "capability_id": "value_architecture_migration_option" }
  → returns the input schema and agent guidance shown on this page

gitrevio_capability_run
  { "capability_id": "value_architecture_migration_option", "arguments": { ... } }
  → returns the result shown above

Works in Claude Desktop, Claude Code, Cursor, Cline, Continue.dev, Goose and Aider. See the MCP server.

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