Lift-and-Shift vs Replatform vs Refactor:
Migration Strategy Cost Comparison (2026)

The strategy you choose changes your total bill by 3–5×. Here's what each approach actually costs — and which one fits your situation.

Rehost vs Replatform vs Refactor — key metrics

MetricRehostReplatformRefactor
Upfront cost per workload$3K$8K$8K$25K$25K$80K
Timeline per workload24 weeks412 weeks1252 weeks
Post-migration cloud costBaseline (100%)~85% of baseline~60% of baseline
3-year TCO vs on-premise+10%-15%-40%
Risk levelLowMediumHigh
Best forLegacy apps, tight timelines, early cloud adoptionDatabases, mid-life apps, teams with some cloud skillsStrategic apps, microservices targets, high-traffic consumer apps

Per-Workload Cost Tables

Cost by workload type and strategy

Different application types have very different per-workload migration costs. This is the data every vendor blog describes in prose — here it is as a table.

Workload TypeRehost (Lift-and-Shift)ReplatformRefactor / Re-architect
Web Application$2K$5K$5K$15K$20K$60K
SQL Database$3K$10K$10K$30K$30K$100K
Batch Processing Job$1K$3K$3K$10K$15K$50K
Data Warehouse$8K$25K$20K$60K$60K$200K
Monolithic Application$5K$15K$15K$40K$50K$200K

Cost ranges are per workload (not per server). Based on 2026 industry consulting rates ($150–$350/hour). Costs vary by cloud provider, geographic region, and workload complexity.

Migration Framework

The 7Rs — full cloud migration framework

01Common

Rehost

Lift-and-shift. Move as-is to cloud.

Cost$3K–$8K per workload
TimelineWeeks
02Common

Replatform

Targeted cloud optimisation without full re-architecture.

Cost$8K–$25K per workload
Timeline1–3 months
03Common

Refactor

Rebuild for cloud-native architecture.

Cost$25K–$80K+ per workload
Timeline3–12 months
04

Repurchase

Move from on-prem to SaaS (e.g., CRM to Salesforce).

CostSaaS subscription
Timeline1–4 weeks
05

Retire

Decommission applications no longer needed.

Cost$0 (saves cost)
TimelineImmediate
06

Retain

Keep on-premise — too complex, regulated, or costly to move.

Cost$0 migration
TimelineN/A
07

Relocate

Move to cloud infrastructure layer without changing OS.

Cost$1K–$3K per workload
TimelineDays

What mix should you use?

Industry data from Gartner and McKinsey on what enterprise migration programmes actually look like:

Rehost40–60%

Legacy apps, stable workloads, apps planned for retirement

Replatform20–35%

Databases, mid-life apps with cloud optimisation potential

Refactor10–20%

Strategic apps, consumer-facing, high-traffic workloads

Retire10–15%

Unused or redundant apps discovered during discovery phase

Decision framework: Use strategic importance × modernisation benefit × urgency to classify each workload. High strategic importance + high modernisation benefit = refactor. Low strategic importance + tight timeline = rehost. Everything in between = replatform.

Migration strategy questions answered

What is lift-and-shift migration and how much does it cost?+
Lift-and-shift (rehost) moves workloads to cloud with minimal modification. It costs $3,000–$8,000 per workload upfront — the cheapest migration strategy. However, because workloads aren't optimised for cloud, ongoing costs are 10–15% higher than on-premise over 3 years. Best for: legacy apps with tight timelines, early cloud adoption phases, workloads planned for retirement within 2 years.
What is the difference between replatform and refactor migration cost?+
Replatform (re-architect partially) costs $8,000–$25,000 per workload and reduces ongoing cloud costs by 10–20% vs lift-and-shift. Refactor (full re-architecture) costs $25,000–$80,000+ per workload but reduces ongoing cloud costs by 30–50%. For a 100-workload migration: replatform adds $800K–$2.5M vs lift-and-shift's $300K–$800K, but saves $60,000–$120,000/year in ongoing costs.
What is the 7Rs cloud migration framework?+
The 7Rs are: Rehost (lift-and-shift), Replatform (targeted optimisation), Refactor/Re-architect (rebuild for cloud), Repurchase (move to SaaS), Retire (decommission), Retain (keep on-premise), Relocate (move to cloud infrastructure without OS changes). The most commonly used in enterprise migrations are Rehost (40–60% of workloads), Replatform (20–30%), and Retire (10–15%).
What is the cheapest way to migrate to cloud?+
The cheapest upfront approach is lift-and-shift (rehost) at $3,000–$8,000 per workload. To minimise total cost: (1) Use free migration tools (AWS MGN, Azure Migrate, Google Cloud Migrate), (2) Negotiate MAP/Azure credits, (3) Right-size cloud instances before committing to reserved pricing, (4) Identify workloads to retire before migrating, (5) Transfer large datasets physically (AWS Snowball) to avoid egress fees.
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