How to Cut Cloud Costs Before You Migrate: The Hidden Savings in Licensing & Workload Optimization

Long-term cost savings are a significant motivator for any organization considering moving to the cloud. But without adequate preparation, cloud migrations usually miss the mark regarding financial efficiency.  
 
Too many companies blindly leap into the migration process only to discover burgeoning expenses and underwhelming ROI.  
 
The reality is this: the biggest potential cost savings don't happen after you migrate — they happen before. 

Why pre-migration optimization matters.

This is why cloud cost optimization before migration is essential. With the right assessments and license audits, businesses can stamp out hidden costs before a single workload touches AWS.  

This article examines two key areas of pre-migration savings — licensing inefficiencies and workload right-sizing — and outlines practical strategies to capture value as early as possible.  

We’ll also place a core focus on the W.H.A.L.E. Assessment, which unearths significant licensing waste in certain ecosystems. 

The Most Common Cost Traps in Cloud Migrations 

Even with a seemingly bulletproof cloud strategy, companies frequently fall into preventable traps that spike spend and delay the realization of cloud value. 

1. Lift-and-Shift without Optimization 

While a lift-and-shift migration (moving applications as-is from on-premises to the cloud) can be a valid starting strategy, there is often hidden baggage that needs to be dealt with before migration begins.  

Organizations that replicate over-provisioned, underutilized, or redundant resources in AWS also replicate unnecessary cost components. The strategy itself isn’t flawed, but skipping pre-migration optimization undermines its value. 

2. Over-Provisioning and Underutilization 

Pre-migration environments are typically scaled for peak demand or legacy usage patterns. If current consumption is not properly evaluated, inflated or incorrect configurations can transfer directly into AWS, resulting in higher compute, storage, and networking costs. 

That’s where the AWS-funded W.H.A.L.E. Assessment (Workload Holistic Assessment & Licensing Evaluation) comes in. Delivered by EPI-USE, this no-cost evaluation provides a detailed analysis of your existing environment, uncovering underused licenses, over-provisioned resources, and hidden risks before you migrate. By right-sizing workloads and optimizing licensing upfront, W.H.A.L.E. helps you build a smarter, more cost-efficient migration plan — reducing waste and accelerating time to value in the cloud. 

3. Lack of Tagging and Governance 

Cloud cost reduction relies on visibility. Without the timely implementation of tagging policies and cost allocation strategies, organizations lose control over spend attribution. This becomes even more of a cause for concern in multi-account setups or decentralized teams, where accountability can easily blur. 

Tagging best practices should be implemented before workloads move. This enables early financial control and supports tools like AWS Cost Explorer and AWS Budgets for real-time insights. 

Put simply: Bad tagging = big bill. 

The Licensing Trap: Why You Might Be Overpaying 

Software licensing is often one of the most overlooked — and most expensive — parts of cloud readiness. 

Legacy models that have been created for static, on-prem environments don’t translate well to the dynamic setup of AWS.  

Here’s where costs tend to spiral: 

• Over-licensing common platforms: Microsoft SQL Server and Windows Server core licenses and CALs are frequently over-provisioned, especially in unused dev environments or for outdated user bases.
• Misaligned entitlements: Licensing scaled for peak usage or legacy application roles can dramatically overstate actual needs.
• Neglected license audits: Without a thorough review or performing cloud cost optimization before migration, too many companies migrate entitlements that no longer reflect current workloads.

The impact: In EPI-USE’s client assessments, we’ve identified cost reductions of up to 77% for Windows and 45% for SQL Server— before migration — by pinpointing licensing waste. 

How an EPI-USE W.H.A.L.E. Assessment Differs from AWS OLA: 

Workload Right-Sizing: A Critical Component for Cost Savings 

While licensing inefficiencies are one pillar of pre-migration savings, workload right-sizing is the other.  
This process involves evaluating CPU, memory, disk IOPS, and network requirements to ensure every migrated resource aligns with its true performance needs. 

In standard on-prem setups, IT teams often prep for peak usage, leading to consistently underused capacity. Without recalibrating these allocations before moving to AWS, these companies often pay far more cloud resources than they use. 

Tools like AWS Compute Optimizer help by offering resource sizing suggestions based on historical data usage. And this is why we recommend cloud cost optimization before migration: A pre-migration strategy for rightsizing ensures that workloads land in AWS at their optimal size, providing immediate savings for organizations. 

Case Study: Allbirds 

Sustainable footwear brand Allbirds made the most of EPI-USE’s optimization strategy to streamline its AWS footprint.  

Through analyzing workload patterns pre-migration and applying Compute Optimizer insights, Allbirds reduced EFS storage costs to a fraction of their previous spend, achieving savings that exceeded their original EFS bill by combining lifecycle management and S3-based backup. 

Actionable Steps for a Cost-Effective Migration 

Performing cloud cost optimization before migration removes the guesswork — it’s a proven process with strategic steps. 

1. Request a No-Cost W.H.A.L.E. Assessment 

EPI-USE’s W.H.A.L.E. Assessment evaluates licensing usage, workload sizing, and architectural design — all aligned to AWS best practices. It identifies licensing waste, predicts post-migration costs, and offers recommendations to decrease technical debt prior to transition. 

2. Conduct a Proof of Concept (PoC) 

Select a high-impact workload and migrate it first. You can use AWS Migration Hub for tracking and insights throughout the PoC, and validate both performance and cost assumptions. EPI-USE’s SHIP methodology improves on this with built-in checkpoints and ongoing refinement. 

3. Implement Tagging and Governance Early 

Start tagging resources before the migration begins. AWS outlines best practices for your tagging strategy here. Tagging by cost center, environment, or application delivers accountability and cost tracking from day one. 

4. Align Stakeholders

Ensure IT, finance, and business units are synced. Cost savings from pre-migration strategy have a roll-on impact on budget forecasting, procurement, and performance metrics. Migrating without alignment can lead to expensive rework later. 

Cloud Cost Optimization Before Migration: Get Clarity Before Commitments 

The path to cost-effective cloud adoption doesn’t start in AWS — it starts with clarity, cleanup, and calibration on-prem.  

From corralling legacy licenses to right-sizing compute environments, every decision made pre-migration delivers ongoing returns post-migration. 

EPI-USE migration services help clients seize these benefits early, with bespoke tools that go beyond compliance to reveal hidden savings. 

Ready to Cut Cloud Costs Before You Migrate?

Download the Pre-Migration Cost Checklist & Claim your no-cost W.H.A.L.E. Assessment with our experts today.