SRCCUTOVERDESTIndependent · No vendor bias · Updated Apr 2026
Phase · Small business

Cloud migration cost for 5–100 server estates

Enterprise migration guides talk about $10M budgets. Here is what it actually costs when you have 10 servers, 5 TB of data, and 25 staff. Three real-world scenarios with break-even timelines.

Three scenarios

What it costs at three SMB sizes

Scenario A

Micro-business

5 srv · 1 TB · 10 users

Total project cost

$15K – $45K

Monthly cloud / on-prem

$800–$3K vs $1K–$4K

Break-even

8–18 months

Strategy

Lift-and-shift

Recommended

AWS Lightsail or Azure SMB tier, simple, managed, predictable pricing.

Scenario B

Small Business

15 srv · 5 TB · 25 users

Total project cost

$40K – $120K

Monthly cloud / on-prem

$3K–$7K vs $4K–$9K

Break-even

12–24 months

Strategy

Mixed (lift-and-shift + replatform for databases)

Recommended

AWS or Azure depending on existing software stack. Consider an MSP.

Scenario C

Mid-Market

50 srv · 20 TB · 100 users

Total project cost

$150K – $450K

Monthly cloud / on-prem

$12K–$35K vs $20K–$50K

Break-even

18–36 months

Strategy

Mixed (60% rehost, 30% replatform, 10% retire)

Recommended

Engage a mid-market cloud migration partner. AWS MAP or Azure FastTrack credits available.

Per server

Cost per server, by workload

The most-searched data point. SMB workload types and what they cost to move at lift-and-shift and replatform tiers.

WorkloadLift-and-shiftReplatform
File / web server$2K–$5K$5K–$15K
Database server$3K–$10K$10K–$30K
Email / Exchange$3K–$8K$5K–$12K (move to M365)
Backup / archive$1K–$3K$3K–$8K
App / VM (general)$2K–$6K$6K–$18K
Cost reduction

How to cut SMB migration cost

Use simplified tiers

AWS Lightsail and Azure SMB tier are 30-50% cheaper than the full platforms for under 30 workloads.

Free migration tools

AWS Application Migration Service, Azure Migrate, Google Cloud Migrate. All free. No reason to pay for tooling.

Apply for credits

AWS MAP and Azure FastTrack do qualify some SMBs. Apply via a partner before scoping the project.

Right-size before commit

Audit utilisation. Most on-prem servers run at 15-30%. Don't replicate over-provisioning into cloud.

Move email to M365 / Workspace

Native cloud SaaS replaces self-hosted Exchange. $6-$22/user/month vs full Exchange licensing and maintenance.

MSP vs DIY break-point

Above ~30 workloads, an MSP is usually cheaper net of internal engineering time burned on the project.

FAQ

SMB migration questions

Q. How much does cloud migration cost for a small business with 10 servers?

A 10-server small business migration to cloud typically costs $25K-$80K all-in. This includes lift-and-shift labour ($30K-$60K), data egress on 5-10 TB (~$500-$900), parallel running for 4-6 months ($8K-$15K), and basic retraining ($5K-$10K). Monthly cloud cost post-migration runs $1,500-$5,000 vs $2,500-$7,000 on-premise. Break-even typically 12-20 months.

Q. Can I migrate to the cloud myself or do I need a consultant?

Self-migration is realistic for under 20 workloads if your team has cloud skills. Free tools (AWS Application Migration Service, Azure Migrate, Google Cloud Migrate) handle the actual move. Above 30 workloads or with database / AD complexity, an MSP is usually cheaper net of internal engineering time. MSP-led 10-50 server migrations typically run $20K-$80K in fees, but eliminate 4-8 months of internal team disruption.

Q. What is the cheapest cloud provider for small business?

AWS Lightsail and Azure SMB tier are the cheapest entry points for small businesses, offering simpler pricing and lower entry costs than the full AWS or Azure platforms. For Microsoft-heavy small businesses (Windows Server, SQL Server, Microsoft 365), Azure with Hybrid Benefit is usually cheapest. For Linux-heavy or container-first, GCP often wins on raw compute price.

Q. Is cloud cheaper than buying new on-premise servers for a small business?

Usually yes, especially when factoring in the avoided hardware refresh ($3K-$10K per server every 5-7 years), data centre / closet space, power, cooling, and the 15-30% of IT staff time currently spent on infra maintenance. The catch: cloud cost compounds monthly, so over 5+ years it can exceed on-premise CapEx for very stable workloads with low growth.

Updated 2 May 2026