Avoiding Cloud Sticker Shock: How to Budget for an Azure to AWS Migration
As businesses continually scale and migrate over to the cloud, moving from one provider to another, such as Azure to AWS, is extremely common. However, moving to a new platform can lead to unexpected costs. This is especially true when you are looking at switching between two platforms that have differences in pricing models. The sticker shock that comes from this can derail many financial plans for organizations if not managed properly, which is why learning how to budget for such a switch is crucial. Learn the key strategies you need to know to avoid hidden costs and prepare for a successful and cost-efficient migration.
Understanding the Pricing Models
The first step to avoiding sticker shock is actually understanding the pricing model of the platform you are switching to. Know that Azure typically operates on a pay-per-use model, where customers are billed on actual usage, whether that be computing, storage, or more. This is sometimes one of the common reasons to migrate from Azure to AWS, as a pay-per-use model isn’t always ideal for certain organizations.
There are cases of reserved instances where Azure offers cost savings for predictable workloads. This means some customers can essentially purchase certain usage levels for 1-3 years.
With AWS, though, there is pay-as-you-go too, but it is far more customizable as you can vary it based on service type. For example, the pricing level for EC2 vs. S3 vs. RDS may all differ. AWS also offers reserved instances for EC2 and Savings Plans that cover EC2, Fargate, Lambda, and more. AWS also has Spot Instances that allow a business to bid on unused compute capacity at a discount, but it’s worth noting they can be interrupted, which may not be right for all business models.
Estimating Costs with Tools & Calculators
Azure provides a unique cost estimation tool to help businesses project costs based on their current usage patterns. This can be useful for planning migrations, but it may not account for all AWS-specific factors when making the switch.
On the other hand, AWS offers a free pricing calculator to estimate cloud services costs. This tool allows users to select specific AWS services, such as EC2, S3, or RDS, and input configurations to generate a detailed cost breakdown. Many businesses prefer to use this calculator when switching from Azure to AWS simply because it has existing services that can be added in.
For the best results, though, try to use both Azure and AWS tools to compare pricing side by side. For example, compare the cost of running equivalent virtual machines on both platforms. Then, aim to understand the implications for your specific workloads. This will allow you to get a far more accurate view on what your potential pricing might look like.
Hidden Costs of Cloud Migration
There are a number of hidden costs and fees that may arise during a cloud migration. By knowing what these look like, you can better estimate what to expect from your migration:
- Data Egress Fees: This refers to the cost of transferring data out of one cloud provider’s network to another, and it can add up quickly when moving large datasets. Azure typically charges for data egress above certain limits, whereas AWS often charges per GB of outbound data transfer, which can accumulate based on data size and frequency.
- Mismatched Storage Models: Azure Blob Storage and AWS S3 operate on different models, which might require file reformatting or restructuring during migration. This can result in additional storage costs and complexity over time.
- Data Overhead: Transferring data between cloud providers may involve unexpected overhead costs or inefficiencies in storage performance, thereby requiring additional resources or operational overhead.
- Training Costs: Teams used to Azure’s platform will need to invest in learning AWS-specific tools and services, which may incur training costs and reduce productivity during your organization’s transition.
- Consulting or Support Fees: Enterprises may require outside consultants or additional support services to ensure the migration process runs smoothly, further adding to the budget, albeit while an important expense.
Avoid sticker shock when switching providers
Successfully budgeting for an Azure to AWS migration will require an understanding of the pricing models of both platforms, using cost calculators effectively, and anticipating the hidden costs like data transfer fees. By applying all of the aforementioned strategies, including rightsizing and using reserved instances, your business can ensure a cost-effective migration. Take a proactive approach to cost management in your business and consider consulting with cloud experts who can help you complete the migration without a hitch.
