Cloud migrations are essential for businesses looking to scale and modernize, but they can be expensive without a clear cost-cutting strategy. Many CIOs wonder, “How do I reduce cloud migration costs?”. The answer lies in proactive planning and leveraging tools and programs that offset expenses. Here are five cost-saving strategies every CIO should consider in 2025.
1. Monetize Legacy Assets to Fund Cloud Migrations
One of the most overlooked ways to reduce cloud migration expenses is monetizing legacy IT assets. Servers, storage systems, and networking hardware sitting idle in your data center still have value through IT asset buyback programs.
By selling decommissioned hardware, businesses can generate immediate cash flow to cover cloud-related expenses such as data migration services, consulting fees, or increased cloud storage capacity.
For companies moving to AWS, asset buyback programs can directly fund cloud migrations. AWS also supports buybacks through its Migration Acceleration Program (MAP), helping organizations reduce upfront migration costs while maximizing returns on aging IT infrastructure.
2. Optimize Data Center Maintenance with Elastic Maintenance
Maintaining on-premises hardware while preparing for a cloud migration can drain IT budgets, especially when the focus should be on the new cloud environment. That’s where Elastic Maintenance comes in—a flexible IT support model that covers hardware maintenance as needed.
Traditional maintenance contracts lock businesses into fixed costs, even when workloads decrease during migration. Elastic IT support allows CIOs to scale services up or down based on business needs, reducing IT maintenance costs significantly.
With Elastic Maintenance, businesses no longer need to worry about long-term commitments or paying for unused maintenance services. It’s a smart solution for balancing data center costs while migrating workloads.
3. Leverage AWS-Funded Programs for Migration Incentives
AWS offers funding programs, like MAP, that provide financial incentives and technical resources to reduce cloud migration costs. Many companies ask, “Can I use AWS MAP to save on migration expenses?”. The answer is yes—and it can be a game-changer.
Through AWS MAP, eligible businesses receive funding, migration planning support, and access to advanced migration tools. These benefits help cover consulting fees, data transfer costs, and even software licensing fees during the migration process.
Additionally, AWS offers credits for services like storage, compute, and database management, further easing the financial burden. Businesses migrating large-scale workloads should explore these funding programs early in the migration process to maximize savings.
4. Avoid the 'Migration Bubble' with Flexible Contracts
Cloud migrations often create temporary IT demands—additional servers, storage, and network capacity needed only during the migration. This surge in IT resource requirements is called the migration bubble. Without careful planning, businesses may overcommit to expensive, long-term cloud contracts that outlast the migration period.
The key to avoiding this issue is using flexible contracts, such as month-to-month IT hardware rentals. These contracts provide scalability during migration, allowing businesses to scale resources up or down based on real-time demands.
For example, businesses moving workloads to AWS may need additional servers temporarily to ensure data transfer stability. By renting rather than buying, companies avoid long-term costs while meeting immediate needs, keeping expenses manageable throughout the migration process.
5. Consolidate and Right-Size IT Workloads Before Migration
Migrating to the cloud without first assessing IT workloads can result in unnecessary expenses. Data centers often run legacy applications or underutilized servers that drive up costs when migrated without optimization.
Right-sizing workloads means determining which applications, servers, and databases are truly essential. Consolidating servers before migration ensures businesses only move what’s necessary, reducing storage and compute expenses.
CIOs can also consider hiring cloud specialists through NerdRabbit’s Managed Squads for pre-migration assessments. These experts can analyze IT environments, eliminate wasteful processes, and streamline cloud configurations for cost-efficient migrations.
Right-sizing IT workloads leads to more predictable cloud bills and prevents overspending on cloud resources. It’s one of the most effective ways to keep migration budgets under control.
Access Cloud Migration Savings with Smart Strategies
Cloud migrations don’t have to be expensive. By monetizing legacy assets, using Elastic Maintenance, leveraging AWS funding programs, avoiding the migration bubble with flexible contracts, and right-sizing IT workloads, CIOs can drastically reduce migration expenses.
Need help optimizing your cloud migration strategy? Contact ReluTech for tailored IT solutions that make cloud migrations more affordable and efficient.
