- Brian Riera, Graduate Business and Technology Analyst
Cloud migration promises scalability, innovation, and long-term cost efficiency. Beneath the surface, however, many organisations encounter unexpected expenses that can derail timelines and budgets.
According to the 2024 Flexera State of Cloud Report [1], managing cloud spend is now the top cloud challenge. While adoption is high, poor planning and limited visibility can turn a cloud initiative into a costly learning experience. A recent McKinsey report [2] echoes this, noting that although 95% of European companies are using cloud, much of the value remains isolated and at subscale, highlighting the importance of strategic focus beyond infrastructure cost savings.
In this article, we’ll explore some of the most common hidden costs of cloud migration and share practical solutions, with a focus on AWS, the most widely adopted cloud platform. From architecture design to spend optimisation, we’ll highlight how to anticipate and avoid common pitfalls using AWS-native tools and best practices.
1. Underestimating the Complexity of Migration
One of the most common pitfalls is treating cloud migration as a simple “lift and shift.” It is a common scenario for legacy systems to reveal hidden interdependencies, hardcoded configurations, and outdated frameworks when moved to the cloud. This often leads to unforeseen rework, delays, and increased labour costs.
In fact, nearly 50% of organisations cite “understanding application dependencies” as a top challenge when migrating workloads to public cloud platforms, according to Flexera [1].
🛠️ Start with a Discovery Phase
Perform a comprehensive application portfolio assessment before migrating. AWS offers tools like the Application Discovery Service and the Migration Readiness Assessment (MRA) to map dependencies and build a realistic, phased migration plan.
2. Poor Cost Modelling and Misaligned Expectations
While cloud platforms like AWS can offer significant long-term savings, realising those benefits depends on how well the migration is planned and modelled. Many businesses assume cloud will automatically be cheaper, only to encounter unexpected costs once workloads are deployed.
According to the 2024 Flexera State of Cloud Report, nearly half of organisations struggle to compare on-premises and cloud costs accurately, often underestimating expenses related to licensing, storage tiers, and networking.
🛠️ Model Costs with AWS-native Tools
Use tools like the AWS Pricing Calculator, AWS TCO Calculator, and Cost Explorer to forecast and validate expenses early. Consider a FinOps approach to align engineering and finance teams around ongoing cost management—a practice that brings financial accountability to cloud spending.
3. Inefficient Cloud Architectures
A common mistake is replicating on-premises architecture in the cloud without rethinking design. Overprovisioned EC2 instances, unused EBS volumes, or monolithic app designs can waste resources and inflate monthly bills.
🛠️ Design for the Cloud, Not Just in the Cloud
Adopt AWS’s Well-Architected Framework, particularly the Cost Optimisation Pillar to design scalable, resilient, and cost-effective solutions. Use Auto Scaling, Savings Plans, Spot Instances, and Compute Optimizer for continuous cost and performance tuning. For many workloads, modernising into serverless (Lambda) or containerised (ECS, EKS) deployments may be more efficient.
4. Data Transfer and Egress Charges
Data transfer is one of the most overlooked cloud costs, especially data egress, which applies when moving data out of AWS (to the internet or another region). Businesses handling large datasets or inter-region communication may face significant recurring costs.
🛠️ Architect for Data Locality
Architect for data locality, keep compute and storage within the same region. Use CloudFront for caching and S3 Lifecycle Policies to optimise data storage and transfer. Monitor with Cost and Usage Reports (CUR) to track and attribute network usage accurately.
5. Lack of Visibility and Governance
Without centralised control, teams can quickly rack up costs by spinning up instances, testing services, and forgetting to shut them down. Orphaned resources and inconsistent tagging often lead to unclear accountability.
🛠️ Tag, Monitor and Alert Proactively
Implement strict tagging policies from day one, and enforce them with AWS Organisations, Control Tower, and Service Control Policies (SCPs). Use Budgets, Cost Anomaly Detection, and CloudWatch Alarms to catch waste early and alert the right teams.
6.Skill Gaps and Training Overhead
Cloud platforms evolve rapidly, and not all teams are equipped with the right knowledge to use them efficiently. This often results in suboptimal architectures, misconfigured resources, or overreliance on consultants, adding to long-term cost.
Interestingly, “assessing technical feasibility” was listed as another top cloud migration challenge in Flexera’s report, highlighting the need for deeper internal capability.
🛠️ Invest in Cloud Fluency Early
Invest in training and certification from the outset. AWS offers free resources like AWS Skill Builder, Well-Architected Labs, and hands-on workshops to help teams build confidence and capability. Working alongside trusted partners can reinforce best practices, accelerate learning, and ensure alignment across teams.
Conclusion
Cloud migration is not just a technical decision, it’s a strategic one. While AWS offers immense potential, the hidden costs of cloud migration can offset early gains if they’re not accounted for upfront.
With global public cloud spending projected to double by 2028 [3], the pressure to manage costs effectively is only increasing. By investing in planning, right-sizing architectures, improving visibility, and upskilling teams, businesses can unlock the real value of the cloud without surprises.
At BoatyardX, we help teams plan, execute, and optimise their journey to the cloud. Whether you’re migrating for the first time or rethinking your current architecture, we can help you get it right from the start.
[1] Flexera (2024), Available at: https://info.flexera.com/CM-REPORT-State-of-the-Cloud
[2] McKinsey & Company (2023), Available at: https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/the-state-of-cloud-computing-in-europe-increasing-adoption-low-returns-huge-potential
[3] IDC (2024). Worldwide Spending on Public Cloud Services is Forecast to Double Between 2024 and 2028, According to New IDC Spending Guide. Available at: https://www.idc.com/getdoc.jsp?containerId=prUS52460024
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