How to Calculate the Cost of a Cloud Migration

As digital enterprises increasingly adopt cloud computing, they often encounter challenges in effectively planning and budgeting for cloud migration due to underestimated costs and lack of financial expertise. Many organizations mistakenly view cloud migration as a simple "lift and shift" process, overlooking the complexities highlighted by a Forrester Consulting study that revealed widespread "cost complexity" and misaligned expectations. To mitigate these issues, companies must consider three main cost categories: current application and infrastructure costs, qualitative financial estimates of cloud infrastructure costs using calculators from major providers, and the often underestimated cloud migration costs, which include labor and potential use of migration automation software. Tracking and benchmarking during and after the migration is critical to avoid running parallel environments longer than necessary, ensuring a smoother transition and operational parity between the original and cloud systems. This strategic approach helps in managing migration timelines and costs effectively, ultimately leading to successful cloud adoption.