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Cloud Migration Costs: What to Expect and How to Manage Them

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Cloud Migration Costs: What to Expect and How to Manage Them
Author: DuploCloud | Tuesday, September 20 2022
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Find out what you’ll pay (and what you’ll save) as you bring your business to the cloud.

Poor estimations of cloud migration costs usually put businesses in an overspending position. Historical data confirms that 45% of organizations exceed their established cloud spending limits. This usually results from a careless approach with no consideration for hidden expenses and inadequate strategies.

And yet, relocating an organization’s infrastructure to the cloud increases flexibility and scalability while at the same time having several other advantages. But, there are expenses associated with it - especially for large-scale corporations. Therefore, when deliberating over the switch from on-premises hardware to third-party solutions, the expense of cloud migration needs to be factored into at the earliest opportunity.

If you really want your company to be among the 60% that have cloud-corporate data, starting the planning phase right now is your best option. The earlier you commence, the better the outcome. To enable your company to get ready for cloud migration, ensure you prepare a breakdown of projected expenses and savings. This is how you go about planning cloud migration expenses for your organization.

So, how prepared are you when it comes to the monetary implications of cloud migration? While there are many advantages to moving to the cloud, understanding the attendant expenses is just as important. This article seeks to explain how much is the cost of cloud migration and the influence it has on a business. Consider moving to the cloud. It’s important to know your costs, including both expected and hidden ones. This will help you make an informed decision. Let’s dive into the key factors that influence cloud migration expenses and how to manage them effectively.

Key Takeaways

  • Going to the cloud is a major financial move that can impact your business's bottom line. You can avoid unnecessary spending and unexpected expenses by knowing potential costs in advance.
  • Each business has its specific cloud migration costs that vary based on the technology needs, data volumes to be transferred, and security requirements. 
  • Controlling cloud expenses is essential, and organizations can reduce migration costs by up to 30% through careful planning and cost estimation tools. 

Cloud migration costs: What should I expect for my business?

You might already be thinking about the cost of your new cloud service. It’s also important to check other expense and saving categories. This helps you determine cloud migration costs and how they impact your business. Here’s a look at the financial impacts of moving your business to the cloud.

Ready to take your understanding of cloud migration cost further? Check out The Essential Guide to Cloud Migration.

cloud migration cost

Cloud migration can add to an organization’s performance standards. 

Savings against on-premises solutions

Real estate savings can be achieved by moving to a cloud environment. That is, where a physical server requires enough space, power, cooling, and maintenance. All of these usually are costly. The cloud actually takes out the costs of space, power, cooling, and maintenance as it is helmed over the hardware by the cloud providers, many of whom provide tools to aid the movement from one to the other.

It is easy to forget costs related to cloud migration. Simplifying the current setup can reduce costs just before the transfer. Even the server rack owned incurs additional costs. These costs are reduced with the cloud transition. Therefore, savings are included in estimates to provide a more rounded financial picture.

Refactoring costs

The nature of the applications also determines the level of change involved for cloud compatibility. Dinesh, a frontend engineer at Amazon, points out that many companies fail to recognize the high costs of reworking software, often resulting in much larger budgets than they initially planned for. This then contributes to the higher cost of such cloud migration. Thus, talking to cloud migration experts would help effectively manage such costs.

Your move to cloud services can be easy or tricky. It all depends on your business’s current software setup. Moving it to the cloud could be simple if your company uses standard software on virtual machines. If your company uses custom solutions across various networks and systems, you might need to spend a lot of time and money to prepare for cloud service.

A no-code/low-code DevOps platform like DuploCloud can speed up app redeployment. This approach helps your business focus on creating value. It reduces the need to handle the disruptive effects of cloud migration alone.

Cloud environment costs

Transferring data to the cloud can be expensive, especially when large amounts are transferred online. Some providers may charge for uploading data, while others do not. Therefore, it is important to consider these charges and look into physical services that move large amounts of data around as often as possible to save costs.

According to David Slazyk, Vice President of IS, “Migrate, optimize, and modernize Windows Server and drive innovation with your Windows-based applications on AWS. With over 15 years of experience, AWS can help you reduce your reliance on Microsoft licensing, drive agility with serverless and containers, and simplify your transition to open-source alternatives.”

Cloud platforms and providers offer many plans for businesses of all sizes. Prices vary based on terabyte storage, thousands of data requests, and more. To find the final number, think about what your business needs. Luckily, you don’t have to solve everything alone.

Private and public cloud services are then charged differently according to computing power, storage, and data transfers. Understanding your needs and choosing the plan that suits them is important. The AWS, Microsoft Azure, or Google Cloud Price Calculator could help customers calculate such costs.

Ready to take the next step? Our free ebook will walk you through everything you need for your cloud migration strategy. Read it now:

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Online tools for estimating cloud migration costs

online tools for estimating cloud migration costs

Online tools allow analysis of the cloud migration process

Cloud migration costs can vary widely. Smaller workloads cost around $5,000. In contrast, larger tasks can exceed $500,000. To get a better estimate, use tools from major cloud service providers. These tools let you choose services, input your needs, and quickly estimate the cost of cloud migration. 

Here’s more info on Amazon, Microsoft, and Google’s tools for cloud migration estimates.

  • Amazon Web Services: The AWS Pricing Calculator helps both new and existing customers. It provides clear pricing calculations for those thinking about changing their service. You can search for the most cost-effective instances for your needs. It also lets you compare costs by region. The AWS Migration Acceleration Program interface can feel overwhelming at first. But it’s a powerful tool once you know what you need.
  • Microsoft Azure: The Microsoft Azure Pricing Calculator sorts services into categories. This helps you find what you need. It also provides easy example scenarios. You can customize them to meet your needs. Saving several estimates simultaneously helps users compare options before choosing a plan with Microsoft.
  • Google Cloud: The Google Cloud Pricing Calculator is organized by product. Knowing what architecture you need for your business services in advance will help you. Google's database is easy to search. It shows an up-to-date pricing estimate next to your current selections.

Combine the results from your chosen service with your on-premises savings and refactoring costs. This will give you a final estimate for a successful cloud migration.

Make your business more efficient with DuploCloud's Cloud Migration Solution.

Migrating to the cloud is a wise choice for any business, but it is a little more complicated when there is no reasonable amount of DevOps expertise. 

Do you have to hire expensive freelancers or staff who will not spend money purchasing tools? Then you are very wrong because it is possible with the help of DuploCloud. DuploCloud's Cloud Migration solution goes beyond just estimating cloud costs. It connects legacy systems to cloud computing. This ensures a smooth, efficient, and secure transition.

Frequently Asked Questions (FAQs)

What unforeseen costs can be incurred when migrating to the cloud?

Some costs payable include large data transfer charges, application upgrade fees, cloud use charges, compatibility issues, employee training, and potential downtimes.

How can I minimize costs for cloud migration? 

To reduce costs, consider the current configuration and decide which apps to migrate. Use cloud cost-saving tools from providers. And, of course, it will be much easier for people with skilled professionals in cloud migration to do it.

What causes the increased cost of updating applications to the cloud? 

Factors include application complexity, customization needs, interdependencies with other systems, and requirements of the target cloud environment.

Will there be continuing costs after migrating to the cloud? These include:

  • Cloud service subscriptions
  • Data storage charges
  • Fees for the consumption of network bandwidth
  • Additional services, for example, Security and Compliance Software
  • Fees for ongoing monitoring and management

How long does the cloud migration process take on average? 

The period may depend on how complex and large the migration is. Small migrations may take a few weeks only, and very big and complicated ones take months. However, implementing this process with experienced specialists and careful planning may speed things up. 

A smooth transition requires understanding the cost management of cloud migration, as the right tools and expertise can make it affordable.

Author: DuploCloud | Tuesday, September 20 2022
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