How much does cloud migration cost?

Cloud migration total costs range from $100,000 for simple lift-and-shift (10-20 apps) to $2M+ for enterprise transformations (100+ apps). Consulting fees represent 25-40% of total costs, with infrastructure, training, and operational overhead comprising the remainder. Mid-market firms ($50M-$250M revenue) typically spend $300K-$800K for standard migrations with re-architecture.

What is the average ROI for cloud migration?

Average cloud migration ROI ranges from 200-400% over 3-5 years. Primary savings come from infrastructure optimization (20-40% cost reduction), operational efficiency (30-50% less management overhead), improved uptime (99.99% vs 99.5%), and faster time-to-market (40-60% faster deployment). Break-even typically occurs 12-18 months post-migration.

How long until cloud migration pays for itself?

Break-even for cloud migration typically occurs 12-18 months after completion. Factors affecting payback period include: migration complexity (simple lift-and-shift recovers faster), consulting firm choice (boutique vs Big 4), training investment, and ongoing optimization practices. Companies with comprehensive knowledge transfer achieve 40% lower long-term costs.

Cloud Migration ROI Calculator

Estimate your cloud migration costs, potential savings, and break-even timeline. Based on benchmarks from 150+ cloud migration projects (2023-2025).

How to use: Enter your company details below. Calculator uses industry benchmarks to estimate consulting costs, infrastructure savings, and ROI timeline. Results update instantly.

Your Company Profile

Annual Revenue

Number of Applications to Migrate

10 apps 50 apps 200+ apps

Migration Complexity

Consulting Firm Type

Current Annual IT Infrastructure Spend

Compliance Requirements

HIPAA (Healthcare) PCI-DSS (Payment) SOC 2 (General Security)

Estimated Migration Costs

Consulting Fees $360,000

Infrastructure Setup $180,000

Training & Change Management $50,000

Compliance & Security $25,000

Total Migration Cost $615,000

Projected Annual Savings

Infrastructure Optimization $300,000/yr

Operational Efficiency $150,000/yr

Reduced Downtime Value $75,000/yr

Total Annual Savings $525,000/yr

ROI Summary

14 months

Break-even Point

255%

3-Year ROI

$2.0M

5-Year Net Savings

9 months

Est. Project Duration

Industry Benchmark Comparison

Industry Average ROI

200-400%

over 3-5 years

Typical Break-even

12-18 months

after migration complete

Infra Cost Reduction

20-40%

annual savings

Note: These estimates are based on industry benchmarks. Actual results vary based on optimization practices, vendor negotiations, and implementation quality. Companies with dedicated FinOps practices achieve 15-20% better results than these benchmarks.

Hidden Costs to Consider

Often Underestimated Costs

• Data transfer fees: $0.02-$0.09/GB egress can add $10K-$50K+ annually
• Dual infrastructure: 2-4 months running both systems (double costs)
• Productivity dip: 10-20% reduced output during learning curve (3-6 months)
• Premium support tiers: Enterprise support adds 10-15% to cloud bill
• Third-party tools: Monitoring, security, logging tools ($50K-$200K/yr)

Often Overlooked Benefits

• Developer velocity: 40-60% faster feature deployment
• Recruitment advantage: Engineers prefer modern cloud environments
• Business agility: Ability to quickly test new markets/products
• Security improvements: Built-in compliance and security features
• Carbon footprint: 65-85% lower emissions vs on-premise data centers

How Firm Choice Impacts Your ROI

Factor	Boutique Specialist	Mid-tier Firm	Big 4 Consultancy
Hourly Rate	$50-$150	$80-$200	$200-$350
Typical Project Cost	-30% vs Big 4	Baseline	+40-60%
Project Speed	30% faster	Baseline	10-20% slower
Best For	Mid-market, focused migrations	Balanced needs	Complex compliance, global scale
Net ROI Impact	+50-80% better ROI	Baseline	-20-30% ROI (but lower risk)

Mid-market companies ($50M-$250M revenue) save $150K-$200K on average by choosing boutique specialists for standard AWS migrations. Learn more about firm selection →

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