5 Factors That Determine Business Data Migration Cost

Pankaj Rai
CloudFuze
Published in
3 min readJun 28, 2022
Photo by Cherrydeck on Unsplash

Data migration cost is different for every business as there are multiple factors that determine the overall cost. Factors such as using specific, or all functionalities of the data migration tool determine the cost of migrating business data.

This post breaks away from the traditional data-migration-cost-per-terabyte measurement and instead offers an intricate look into the critical factors that determine how much does data migration costs for businesses.

1. The Number of Users and the Size of the Data To Migrate

One of the primary variables that directly determine the cost of data migration is the number of users and the size of the data businesses need to migrate.

In general, the more the number of users and data size to migrate, the higher the cost. And in many cases, SMBs and enterprises have a lot of users and company data to migrate.

2. Data Size Increase in the Destination Cloud

Data migration cost per terabyte increases when the overall data size increases in the destination cloud. This is common for businesses that need to migrate file versions along with metadata from Google Drive to OneDrive.

Transferring file versions from Google Drive creates two copies of each version in OneDrive. As a result, two copies of each source file version increase the overall data size in OneDrive. You can learn more about it in this File Version Migration Guide.

3. Making Tooling Customizations

Customizing the functionalities of the migration tool also increases the data migration cost.

In many cases, businesses need to customize the migration tool of the migration vendor, such as tweaking the existing functionalities or scaling up the tooling capabilities.

4. White Glove Service Model

Managed migration services also add to the overall cost of data migration. Businesses that have large and complex data migration projects must opt for a managed migration service to navigate through the complexities and lower the risk of data security.

A managed migration service can help businesses perform complex migration tasks such as migrating source cloud specific features to the destination cloud (e.g., transferring Box Notes during Box to OneDrive migration).

5. Tool License Extension

Extending the license to use the tool increases the data migration cost for businesses. This is especially applicable for MSPs that use a single data migration tool license to migrate data of multiple clients for cost savings.

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