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How To Build a Cloud Migration Cost Estimate

Migrating to the public cloud can take months or even years and involve a complex mix of workload migration, application modernization and SaaS adoption. Recently, David Wright, Senior Director Analyst at Gartner, presented at the Gartner IT Infrastructure, Operations & Cloud Strategies Conference 2021 EMEA, and explained how I&O leaders can keep their cloud migration costs on track.

Key takeaways from David’s session include:

  • “By 2024, 40 to 60% of all IT spending will be in the public cloud.”
  • “Increasingly, I&O leaders will be asked about cloud governance as a central area of management in the public cloud. Good cloud cost governance begins with good cost governance right at the beginning of your cloud migration phase.”
  • “There are six common ways cloud migration costs go off the rails.”
    • #1 Wrong Team: Having untrained staff and inexperienced partners on the team.
    • #2 Rushed application assessment: Missing requirements or having wrong migration sequencing.
    • #3 Wrong emphasis: Having too much “lift and shift” or too little refactoring, remodeling and transformation of workloads to make them more cloud natives.
    • #4 Poor landing zone design: This includes cloud compute network and storage infrastructure and security integration and management tools. If not done well, it leads to higher operations costs.
    • #5 Insufficient appreciation of dependency: If you rush through the application assessment, you are likely not to notice all the ways in which the workloads talk to one another or depend on one another. Not taking into account all those crossed dependencies are likely to cascade into migration delays.
    • #6 Hidden indirect costs: The cost of retraining, reskilling as well as residual costs should be in the I&O leaders budgets.


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