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How much does cloud migration really cost?

Most businesses don’t overspend on cloud migration because cloud is “expensive.”

They overspend because of assumptions.

  • Businesses assume cloud migration is just moving files.
  • IT providers assume environments are cleaner than they are.
  • And no one realises how much hidden complexity has built up over time.
McKinsey’s global analysis shows that poor coordination adds 14% more cost per year to cloud migration than originally planned. Not because the cloud is costly — but because environments are messy, expectations drift, and surprises appear mid‑project.
 
This guide explains what really affects cloud migration cost, where unexpected expenses come from, and whether cloud is actually cheaper than staying on‑prem.

Quick Answer: How Much Does Cloud Migration Cost?

Cloud migrations for small and medium organisations typically fall into these broad ranges:

  • Simple migrations: £8,000–£25,000
  • Moderately complex environments: £25,000–£60,000
  • High‑complexity, multi‑system migrations: £60,000–£150,000+

Your cost depends far more on what you’re moving, how clean your current environment is, and the level of security and identity work needed, than on the cloud platform itself.


Why does cloud migration cost that much?

Why does cloud migration cost that much?

Cloud migration isn't just copying data from one system to another.

In practice, cloud migration means moving:

  • Identities - who can access what
  • Permissions - what people are allowed to do
  • Security models - how access is controlled
  • Workflows - how work actually gets done
  • Culture - How people work day to day

 

Owen Notched

Owen Hanley, Sales Director of One2Call, reflects what many organisations discover during planning:

“The biggest factors that affect the cost are the scope and complexity of workloads, the volume and structure of data, security and compliance requirements, and the change management needed to bring users along.”

If an environment is clean and modern, migration is easy.

If not, the migration process makes that complexity visible very quickly!

So in reality, the cost of migration is driven by the scope of the project, not by the cloud costs themselves.

So if you're looking to assess the costs of your upcoming migration costs, "what am I moving, and how easy will it be to move" is a good question to start with. 


Why do legacy systems push cloud migration costs up?

Why do legacy systems push cloud migration costs up?

Legacy systems dive up migration costs by creating extra work before migration can even begin.

Older hardware and outdated software introduce "technical debt", meaning problems that have built up over time that now need solving.

This usually requires:

  • Discovery work to properly understand the situation.
  • Extra work to fix or modernise systems
  • Workarounds just to make systems cloud-ready
Owen Hanley is direct about what this looks like in reality:

“Aged hardware and software introduce technical debt. Older applications and operating systems often need modernisation or workarounds, and that ultimately drives project cost.”
This is not down to inefficiency or poor planning. Systems designed years ago were not built for modern, identity-led security environments.

Migrating to the cloud does not create these problems. It reveals them.

For many businesses, this is the first time that hidden complexity becomes obvious.

So ask yourself, how old and cloud-ready is your current setup?

Which parts of cloud migration actually cost the most?

Which parts of cloud migration actually cost the most?

Most cloud migration budgets break down like this:

1. Discovery & Planning (25–40%)
Understanding what exists, what’s broken, and what needs to change.

2. Remediation & Readiness (30–50%)
Fixing identity, security, and networking issues that have silently built up.

3. Data Migration & Cutover (20–30%)
Moving data, syncing changes, and performing out‑of‑hours work.

Skipping these stages does not remove cost, it just moves it further down the line.

In simple terms, you either pay to prepare properly or you pay to fix problems later.

Why are some cloud migrations more straightforward than others?

Why are some cloud migrations more straightforward than others?

Cloud migration costs vary because complexity matters more than business size.

Two companies with 100 users can have:

  • one clean, modern environment
  • one patched‑together system with years of messy permissions

 

That difference usually comes from structure, not scale.

Common sources of complexity include:

  • Fragmented systems that do not talk to each other
  • Messy permissions built up over years
  • Multiple ways of connecting to systems
  • Phased or staged change overs that extend projects
Clean environments move faster. Complex ones take longer.

This often surprises businesses, because the complexity was already there. It just was not visible before.

So how simple is your environment really?

How much do data size and user numbers affect migration cost?

How much do data size and user numbers affect migration cost?

Data size and user numbers usually affect migration cost more than most businesses expect.

Data volume increases cost because moving large amounts of data takes longer and is harder to control.

This shows up as:

  • Longer migration windows
  • More background syncing to keep data up to date
  • Potential storage or data exit costs, meaning charges when data leaves a platform

User numbers increase cost because more people are affected by the change.

This usually means:

  • More communication
  • More training
  • More support after migration
Cloud migration is not just a technical exercise. It is organisational change.

What this means in practice is that people, not systems, often determine how smooth a migration feels.

How prepared are your users for that change?

Where do businesses accidentally increase their own cloud costs?

Where do businesses accidentally increase their own cloud costs?

Many businesses increase their own cloud migration costs through late changes and unrealistic expectations.

This is very common.

Typical examples include:

  • Changing the scope partway through the project
  • Migrating data that is no longer needed
  • Having no internal decision-maker to remove blockers
  • Expecting migration work to happen with no disruption at all
Each of these forces work to happen faster, later, or under pressure. Pressure increases cost.

In plain terms, last-minute changes are almost always expensive.

What could you simplify before migration starts?

Are there common unexpected costs with cloud migrations?

Are there common unexpected costs with cloud migrations?

Yes - common unexpected costs include:

  • Licence upgrades when moving to modern platforms
  • Third-party tools needed for security or management
  • Adoption and training so people can actually use the systems
These are not optional extras. They are part of making your cloud work properly.

For most businesses, this is the difference between moving systems and improving how work gets done.

Are you budgeting for a move, or budgeting for success?

What is the most expensive cloud migration mistake?

What is the most expensive cloud migration mistake?

The most expensive cloud migration mistake is underestimating security and identity work.

This is where many businesses regret trying to move too quickly.

Owen Hanley highlights a pattern seen repeatedly:

“Some organisations choose a lift-and-shift without putting conditional access or a zero-trust baseline in place, meaning access is not tightly controlled. That almost always leads to rework, incidents, and unplanned licensing changes later.”

Doing security properly at the start is consistently cheaper than fixing it later.

In simple terms, speed without structure usually creates problems.

Are you designing for speed, or for stability?


Is cloud actually cheaper than staying on-prem?

Is cloud actually cheaper than staying on-prem?

For most small and medium-sized businesses, cloud is cheaper over time if it is managed properly.

Cloud removes:

  • Hardware refresh cycles
  • Energy and space costs
  • Large upfront capital spending
It shifts IT from unpredictable large purchases to more predictable monthly costs.

However, there is an important caveat.

If systems rarely change and usage is very predictable, on-prem can appear cheaper.

Cloud delivers its value through flexibility and the ability to scale without major reinvestment.

So the real question is not which is cheaper in theory, but which fits how your business changes.

Which matters more to your business, predictability or adaptability?

When does cloud become more expensive than on-prem?

When does cloud become more expensive than on-prem?

Cloud becomes more expensive than on-prem when no one actively manages it.

Costs rise when:

  • Systems run continuously without being reviewed
  • Unused resources are left running
  • No one is clearly responsible for cost control
Cloud rewards attention. Poor oversight increases spend.

This is not a cloud problem. It is a management problem.

Who is responsible for managing your costs after migration?

Cloud vs On‑Prem Cost Comparison

Area Cloud On-Prem
Upfront spend Low High
Refresh cycles Included Expensive
Storage scaling Flexible Limited
Power/cooling Included Business pays
Security responsibility Shared Fully internal

What do people miss when comparing cloud and on-prem costs?

What do people miss when comparing cloud and on-prem costs?

Both hide costs that are easy to miss. 

On-prem often hides:

  • Power and cooling costs
  • Physical space costs
  • Disaster recovery investment

Cloud often hides:

  • Data exit charges
  • Premium support costs
  • Identity and security management
Neither option is cheap if it is unmanaged.

The difference is where the costs appear and how visible they are.

Does cloud really mean less control?

Does cloud really mean less control?

The idea that on-prem equals control and cloud removes it is oversimplified.

Danny Notched

Danny Kirkby, CEO of One2Call, frames this clearly:

“On-premises offers maximum physical control, but flexibility is limited by hardware capacity and in-house expertise. Cloud environments often give more usable control through automation, visibility, and tooling, even if some deep customisation is constrained.”
For many organisations, cloud increases day-to-day control because problems are easier to see and fix.

What kind of control actually matters to you?

Is cloud security weaker than on-prem?

Is cloud security weaker than on-prem?

Cloud security is not weaker — it’s shared.  Providers secure the infrastructure.
Customers must secure access, identity, and data configuration.

 

Danny Kirkby clarifies how security responsibility works:
“On-premises environments put full responsibility on the organisation. In the cloud, security operates under a shared responsibility model. The provider secures the infrastructure, but customers must configure identity, access, and data protection correctly.”
Cloud platforms often make compliance easier to evidence, but misconfiguration remains the biggest risk.

In simple terms, security still matters. It just works differently.

Who owns each part of your security model?

What is the biggest misconception about cloud vs on-prem?

What is the biggest misconception about cloud vs on-prem?

The biggest misconception is believing this is mainly a technology decision.

Danny Kirkby challenges that assumption:

“The decision isn’t really about technology. It’s about operating model, responsibility, and risk ownership. Cloud shifts responsibility, not risk, and on-prem only delivers control if the organisation has the skills and processes to manage it properly.”
Poor decisions usually come from underestimating the effort required to run on-prem systems, or the discipline needed to manage cloud properly.

Which model fits how your business actually operates?

The Simple Takeaway

Cloud migration costs and cloud versus on-prem decisions are driven by clarity, not platforms.

You'll stay in control if you understand:

  • What you are moving
  • What needs fixing first
  • What changes cost
  • How your business actually works

Good IT decisions should feel calm and predictable.

No surprises.

No panic.

No expensive lessons learned the hard way.

Before deciding whether cloud is too expensive, ask yourself one final question.

If someone asked why your migration costs what it does, could you explain it confidently?

Get the clarity behind your cloud costs.
Let’s walk through your migration plan so you can explain every pound with confidence - chat with us today.

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