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On-Premises to AWS TCO: Complete Cost Comparison 2026

๐Ÿ“… May 2026โฑ๏ธ 8 min readโœ๏ธ TCOIQ / Wekams

Moving from on-premises to AWS is one of the most common cloud migrations. This guide breaks down the complete 3-year TCO โ€” what it costs, what you save, and how to model it accurately.

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Average Savings: On-Prem to AWS

30-45% total cost reduction over 3 years. Biggest savings: hardware refresh elimination ($500-$2,000/server every 3-5 years), DC overhead (power, cooling, space) and rightsizing to actual utilisation.

EC2 Instance Mapping

4 vCPU / 16GB โ†’ m6i.xlarge ($0.192/hr on-demand, $0.116/hr 3yr RI). TCOIQ automates mapping from your RVTools or Azure Migrate export.

AWS Reserved Instance Savings

1-year RI: 28-35% saving. 3-year RI: 40-42% saving. 100-server environment at $150K/year on-demand โ†’ $87-90K/year with 3yr RIs.

On-Premises Costs Eliminated

Hardware amortisation, DC rent/power, cooling, hardware maintenance, OS/hypervisor licences. Typically $2,000-$6,000 per server per year eliminated.

AWS vs Azure for On-Prem Migration

AWS: best for Linux-heavy, cloud-native. Azure: best for Windows Server (Hybrid Benefit saves 40%). OCI: 40-60% cheaper for Oracle workloads. TCOIQ compares all 5 simultaneously.

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Calculate On-Prem to AWS TCO โ†’
๐Ÿ—๏ธ TCOIQ is built by Wekams โ€” Cloud Intelligence & Digital Transformation. Visit wekams.com

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