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Cloud migration is becoming more popular and widely used by businesses of all sizes. While the cost of a project’s migration will directly depend on its type, businesses can still get an estimate of cloud migration costs by deciding on a few strategies and approaches during the initial stages.
Overview of cloud migration costs
Cloud migration costs are the cost of moving digital resources from old software or data centers to a cloud. Cloud migration is complex and businesses should consider all aspects in order to set realistic budgets and understand the risks.
Cloud migration in stages
Cloud migration is the change from CapEx (capital expenditures), to OpEx (operational expenses). Businesses must choose a cloud solution (public, hybrid, or private) and a service model to estimate the cost of cloud migration.
These are the steps in cloud migration
Pre-migration: This stage involves stating that you need to migrate to cloud computing, understanding the key issues, assessing the data to be transferred and selecting a cloud service provider. These are the costs associated with this stage:
Management of on-premise data, including server powers, expert compensations and infrastructure functioning. Software licensing, warranties, tech support, hardware and software updates.
Consultation: Businesses that don’t have in-house experts can benefit from the advice and assistance of cloud migration vendors.
Database upgrade: The database should be compatible with the specifications for the new system businesses want to transfer their data. This may require a software upgrade on-premises or in a public cloud infrastructure platform.
Test the demo cloud versions: Rent is required for businesses to test the cloud services.
Probable proof-of-concept: This could help to determine if the cloud migration plan meets the business needs before proceeding any further.
Migration: This stage involves accurately categorizing data to make them compatible with the new system requirements, and then securely transferring it onto the new platform. This stage costs:
Migration: The cost of migration is related to the costs of the third-party data transfer company (if hired) as well as the cloud vendor’s fee. If the migration is done using an older software, additional system support and data syncing fees will be required.
Refactoring: Making data and applications compatible with the new system.
Development of new infrastructure, application, code modifications, and establishment of new systems according to business needs.
Post-migration: This stage involves providing proper care and support for the new system. It will cost the following:
Licensing (monthly, yearly) and maintenance costs for the cloud infrastructure.
Monitoring, updating, maintenance, management, staff training
Factors affecting migration costs
Project size: Cloud migration costs directly reflect the company’s size. The larger the company, the more complex the requirements and the workload.
Operations, integration, assessment of challenges: One common challenge businesses face is maintaining the old system during the migration process in order to avoid inactivity.
Cloud service provider: How businesses choose to use the cloud service provider that best suits their needs will also affect the cost of migration.
Third-party assistance: The cost of third-party migration vendor assistance depends on the location, tools, approaches and reputation.
Step-by-step guide to estimate cloud migration costs
Assess the IT infrastructure to determine current costs and identify cost reduction metrics. Then, decide on the data arrays or functions to be performed first.
To determine the cost of cloud services, use a cloud migration costs calculator. For a better estimate, you can also consult an in-house consultant and a cloud migration vendor.
Partner with an experienced cloud migration vendor and choose the right cloud service provider for your business. Then calculate the cloud migration cost.
Consider the post-migration stage, and the associated risks, to get a realistic and accurate estimate of cloud migration.
How to reduce cloud migration costs
Assessing the technical aspects of various strategies and deciding which one is the best.
Deciding how much data will be transferred to cloud
Choose the most effective and appropriate pricing model
Choose a trustworthy and experienced company