Pitfalls, exit costs and official sources
Cloud migration and exit costs: double running, egress, rework and lock-in
What moving to, between or out of cloud and hosting providers really costs: labour, double running, data transfer, rework, commitments and lock-in, with a CAD worked example.
A migration costs more than copying files. The main items are labour (planning, building, testing, cut-over), double running (paying for old and new environments at the same time), data transfer out of the old host, rework of parts that do not move cleanly, training, and contract costs such as early-termination fees or unused commitments. The same list applies when you leave a cloud provider, plus the effects of lock-in: proprietary services that have no direct equivalent elsewhere. Plan the exit before you sign up, and budget a contingency.
This guide is part of the pitfalls overview. All amounts are illustrative.
The cost items
| Item | What drives it | How to reduce it |
|---|---|---|
| Discovery and planning | Number of systems, undocumented dependencies | Inventory first; document as you go |
| Build and configuration | New servers, networks, security, monitoring | Templates and scripts; managed services where sensible |
| Data transfer | Volume, egress rate, network speed | Clean up before moving; compress; consider offline transfer for very large volumes |
| Double running | Months both environments run | Short, well-planned cut-over; move in waves |
| Testing | Applications, integrations, performance | Test plan with business users |
| Rework | Hard-coded addresses, old software versions, licences | Assess early; budget for upgrades |
| Downtime | Cut-over window, rollback | Schedule off-peak; rehearse |
| Training | New consoles, tools, processes | Short sessions for the people who will run it |
| Contract exit | Notice periods, early termination, unused commitments | Time moves with renewal dates and commitment ends |
Worked example: moving three servers (illustrative)
A firm moves three servers and 800 GB of data from a hosting provider to a cloud region in Canada.
| Item | Illustrative CAD |
|---|---|
| Consultant, 40 hours at $130 | $5,200 |
| Internal staff time, 20 hours at $55 | $1,100 |
| Double running, 1.5 months of the old host at $600 | $900 |
| New environment during build and testing, 1 month at $520 | $520 |
| Egress from old host, 800 GB at $0.09 | $72 |
| Software upgrade needed for compatibility | $800 |
| Contingency, 10% of the above | $859.20 |
| Total one-time cost | $9,451.20 |
Data transfer is the smallest line here; labour and double running dominate. If the new environment saves $4,800 a year, payback is $9,451.20 ÷ $4,800 ≈ 1.97 years. Check it with the migration and commitment payback calculator, entering your own one-time cost and yearly saving.
Exit costs and lock-in
When you leave a public cloud, the bill for egress grows with the data you hold: 20 TB at an illustrative $0.09 per GB is 20,000 × $0.09 = $1,800. Some large providers have announced programmes that waive or credit egress for customers moving their data out, usually on request, within a time window and with conditions; check the current terms before planning on them.
Lock-in is usually a bigger cost than egress:
- Proprietary managed services (databases, queues, serverless functions, AI services) may need re-engineering elsewhere.
- Account ownership: if a managed provider or reseller owns the cloud account, you may need a full rebuild rather than a handover (managed cloud guide).
- Commitments: unused reserved capacity or savings-plan spend is usually still payable (commitments guide).
- Data formats: exports that need conversion before another system can read them.
An exit plan in one page
Write this before go-live and update it yearly:
- What we would move: systems, data volumes, dependencies.
- Where to: at least one alternative host type.
- How: export formats, tools, who does the work.
- Cost estimate: labour, egress, double running, contract costs.
- Contract points: notice period, data retention after termination, deletion confirmation, assistance at exit and its price.
- Access: who holds admin credentials, domain registrar access and DNS control.
Privacy and records during migration
A migration is a period of extra risk: data copied to temporary storage, more people with access, old copies left behind. Under PIPEDA you remain accountable throughout, and in Quebec moving personal information to a host outside Quebec requires the privacy impact assessment described in data residency and Canadian regions. After cut-over, get written confirmation that data on the old host has been deleted, and keep accounting records accessible for the period the CRA requires.
FAQ
How long does a small migration take?
For a few servers, from a few weeks to a few months, depending on preparation, testing and how many systems depend on each other. Rushed migrations are where double running and rework costs grow.
Is it cheaper to "lift and shift" or to redesign?
Lift and shift is faster and cheaper upfront but may carry over inefficiencies. Redesign can reduce running costs but costs more to build. Many small businesses lift and shift first, then right-size.
Who pays egress when I leave?
You do, unless the provider waives it under an exit programme or your contract says otherwise. Ask before you sign up, and again before you leave.
Sources
- Office of the Privacy Commissioner of Canada — accountability during transfers to and between processors
- Commission d'accès à l'information du Québec — communication of personal information outside Quebec
- Canada Revenue Agency — keeping electronic records accessible
- Canadian Centre for Cyber Security — securing data during transfer and decommissioning
