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The Hidden Costs of a “Lift-and-Shift” Cloud Migration (and How to Avoid Them)

September 7, 2026 · Rotimi Awe · 13 min read

“We’ll just move everything to the cloud and optimise it later.”

It sounds simple. It can also become an expensive decision.

A lift-and-shift cloud migration, also called rehosting, moves existing applications and servers to the cloud with little or no change to the way they work. It is often fast and can reduce migration risk, but it may leave businesses paying for old infrastructure in a new environment.

Lift-and-shift is not necessarily a bad migration strategy. The problem is treating it as the final destination instead of a possible first step.

For business leaders, the real question is not simply, “How quickly can we move to the cloud?” It is “How do we make sure the move creates long-term business value?”

What Is Lift-and-Shift Cloud Migration?

Lift-and-shift cloud migration means moving an existing application, server, or workload from an on-premises environment to the cloud with little or no change to its design.

The approach is popular because it can make migration faster and reduce the disruption caused by changing applications at the same time.

AWS describes rehosting as moving applications to the cloud without making changes to the application. Microsoft and Google Cloud also describe rehosting as a fast migration option when organisations want to change where a workload runs without changing how it works.

That speed can be valuable.

But there is an important catch.

Cloud platforms are built to offer flexible resources, managed services, automation, and different pricing options. Simply moving an old server into a cloud environment does not automatically make the workload efficient.

That is where the hidden costs can begin.

What Are the Hidden Costs of a Lift-and-Shift Migration?

The hidden costs usually come from running old systems in a new pricing model without changing the way those systems use resources.

Here are some of the areas business leaders should watch closely.

1. Oversized Cloud Resources

Many on-premises servers are sized for their highest expected workload rather than their normal daily usage.

When those servers are moved directly to the cloud, the business may continue paying for the same level of capacity even when it is not needed.

For example, an application that needs high computing power for a few hours each day may still run on a large cloud server 24/7.

AWS specifically recommends techniques such as rightsizing, auto-scaling, and regular monitoring to reduce waste from underused resources.

The lesson is simple: moving a server does not mean the server is correctly sized for the cloud.

2. Storage Costs Can Keep Growing

Cloud storage can look inexpensive when viewed one month at a time.

The problem appears when old backups, unused files, snapshots, logs, and duplicate data continue accumulating.

Without a clear storage policy, businesses can end up paying for data that no longer needs to be stored on high-cost storage.

A good migration plan should therefore ask:

  • What data needs to move?
  • What data needs to stay?
  • What can be archived?
  • How long should backups be kept?
  • Which storage option is appropriate for each type of data?

These decisions can make a meaningful difference to long-term cloud spending.

3. Network and Data Transfer Costs

Another cost that is easy to overlook is data movement.

A workload may depend on several systems communicating with each other. After migration, moving large amounts of data between cloud services, regions, or other environments can add costs that were not obvious in the original migration estimate.

This is especially important for businesses running hybrid environments, where some systems remain on-premises while others move to the cloud.

A migration plan should therefore consider not only where applications will run, but also how data will move between them.

Why Can a Lift-and-Shift Migration Cost More Than Expected?

A major reason is that the cloud changes how infrastructure is paid for.

In a traditional data centre, a company may have already purchased servers and other equipment. In the cloud, resources are generally billed based on usage and the services selected.

That can be an advantage because businesses can scale resources when needed.

It can also create waste when resources remain active without enough usage.

AWS’s recent guidance on rehost migrations specifically warns that rehosting can reduce the cost benefits of cloud if proper cost controls and optimisation are not included.

This is why cloud cost optimisation should not be treated as something to consider six months after migration.

It should be part of the migration plan from the start.

What Other Costs Should Business Leaders Watch?

Cloud bills are only one part of the picture.

There can also be costs related to managing, securing, monitoring, and maintaining workloads after the move.

Software Licensing

Some applications may still require the same software licences after migration.

A lift-and-shift approach can therefore move the application to the cloud without changing the licensing model.

Before migration, businesses should review which licences are being used, whether they are still needed, and whether a cloud-friendly alternative exists.

Monitoring and Management

More cloud resources can mean more systems to monitor.

Without good monitoring, teams may struggle to understand which resources are healthy, which are underused, and which are driving costs.

This can increase the workload for IT teams and make it harder to control spending.

Security and Compliance

Moving an application does not automatically make it secure.

Security controls, user access, backups, logging, compliance requirements, and recovery plans still need to be reviewed for the new environment.

For businesses in regulated sectors, this is especially important because the migration must support both business goals and applicable legal or industry requirements.

Should Businesses Avoid Lift-and-Shift?

No. Lift-and-shift can be the right strategy in many situations.

It can be useful when a business needs to move quickly, reduce pressure on an ageing data centre, or minimise changes to a critical application.

AWS notes that rehosting can be a useful first step, with further modernisation taking place after workloads are operating in the cloud.

The problem is not lift-and-shift itself.

The problem is stopping there.

Once a workload is stable in the cloud, the business can look for opportunities to optimise resources, improve resilience, use managed services, automate operations, and reduce unnecessary costs.

What Is a Better Approach to Cloud Migration?

A better approach starts with assessment before migration.

Instead of asking, “How do we move this server?”, ask:

“What is this workload costing us today, what does the business need from it, and what should its future cloud environment look like?”

AWS identifies several migration strategies beyond rehosting, including replatforming, refactoring, repurchasing, relocating, retiring, and retaining workloads. The right choice depends on the workload and the business outcome being targeted.

A practical migration process can look like this:

  1. Assess – understand applications, dependencies, usage, data, licences, and current costs.
  2. Classify – decide which workloads should be rehosted, replatformed, modernised, retired, or retained.
  3. Design – build a cloud environment based on performance, security, cost, and business needs.
  4. Migrate – move workloads in manageable phases.
  5. Optimise – right-size resources and remove waste.
  6. Govern – monitor usage, costs, security, and performance continuously.

This turns cloud migration from a simple infrastructure move into a business transformation programme.

How Can Businesses Control Cloud Costs After Migration?

Cloud cost management works best when it becomes an ongoing process rather than a one-time exercise.

The FinOps Foundation recommends practices such as cost allocation, tagging, visibility, and clear ownership so organisations can understand where cloud money is being spent and who is responsible for it.

Business leaders should establish:

  • Clear ownership for cloud spending
  • Budgets and spending alerts
  • Resource tagging and cost tracking
  • Regular rightsizing reviews
  • Policies for unused resources
  • Monitoring for unusual spending
  • Regular architecture reviews

This creates a culture where cloud decisions are made with both technical performance and business cost in mind.

Why Should Businesses Work With a Cloud Migration Partner?

Cloud migration is rarely just a technical exercise.

It involves business goals, applications, data, security, budgets, people, and plans.

An experienced cloud partner can help an organisation determine what should move, what should change, what should stay, and what should be removed altogether.

That is where Descasio brings particular value.

Descasio has been helping organisations across Nigeria and West Africa move from legacy infrastructure to modern cloud environments. Its migration approach begins with an assessment of what a business is running, where it runs, what it costs, and what risks exist before designing a phased migration plan.

Descasio also combines cloud migration, application modernisation, database migration, cloud cost optimisation, hybrid and multi-cloud architecture, and post-migration management rather than treating migration as a one-time move.

That broader view matters because the cheapest migration is not always the one with the lowest initial project cost.

The better question is:

What will this infrastructure cost us over the next three to five years, and what business value will it create?

FAQ: Lift-and-Shift Cloud Migration

Is lift-and-shift cheaper than other migration strategies?

It can be cheaper and faster to implement because it requires fewer application changes. However, the long-term cloud cost can be higher if workloads are not optimised after migration.

Is lift-and-shift suitable for every application?

No. Some workloads may be better candidates for replatforming, refactoring, retirement, or other approaches. The right strategy depends on the workload, business needs, risk, and desired outcome.

How can I reduce cloud costs after a lift-and-shift migration?

Start with a review of compute, storage, networking, licensing, and usage. Then apply rightsizing, scheduling, appropriate pricing models, cost tracking, and ongoing governance.

Should we modernise everything during migration?

Not necessarily. Trying to change every application during migration can increase complexity and risk. For some workloads, a phased approach—move first, then modernise—may be more practical.

Conclusion

Lift-and-shift can be an effective way to begin a cloud journey.

But moving an existing environment to the cloud without reviewing how it is designed, sized, secured, and managed can create new costs instead of delivering the savings the business expected.

The smarter approach is to assess first, choose the right migration strategy for each workload, build cost controls into the process, and optimise continuously after migration.

At Descasio, cloud migration goes beyond moving servers. We help organisations assess their existing environments, design the right cloud strategy, optimise infrastructure costs, and manage the environment after the move.

With expertise across AWS, Azure, Google Cloud, hybrid cloud, application modernisation, and cloud cost optimisation, Descasio helps business leaders turn cloud migration into a measurable business advantage rather than simply a change of location for their IT systems.

Is Your Cloud Migration Costing More Than It Should?

Before moving another workload, let Descasio help you understand what you are moving, what it will cost, and where you can create greater value from the cloud.

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