Part 1: Introduction to Magento Migration and Why It Matters in 2025

E-commerce businesses thrive on stability, performance, and customer experience. For over a decade, Magento has been a cornerstone platform for online stores, powering everyone from small retailers to large enterprises. However, the Magento landscape has changed significantly since Adobe’s acquisition of Magento and the subsequent end of support for Magento 1 in June 2020. Despite this, thousands of businesses around the world still run on Magento 1 in 2025, facing mounting risks and challenges. Migrating from Magento 1 to Magento 2 is no longer just an option; it’s a strategic necessity for scalability, compliance, and long-term growth.

This article provides a comprehensive 5000-word breakdown of the costs, processes, and considerations involved in making the move to Magento 2. Across five detailed sections, we will cover everything from the reasons behind migration to the step-by-step cost breakdown of development, hosting, extensions, and long-term maintenance.

In this first section, we’ll focus on the importance of migration in 2025, the current state of Magento 1 stores, the business risks of staying outdated, and the opportunities that Magento 2 offers. This context is crucial before diving into the numbers and details in later sections.

The Magento Ecosystem in 2025

Magento has undergone a dramatic evolution in the last decade. After Adobe acquired Magento in 2018, it rebranded the platform as Adobe Commerce, which represents the enterprise version of Magento 2. Adobe has steadily invested in Magento 2, strengthening its ecosystem with integrations into the Adobe Experience Cloud, advanced analytics, AI-powered personalization, and cloud hosting optimizations.

By contrast, Magento 1 is effectively frozen in time. It no longer receives security patches, official support, or feature updates. While some agencies and third-party developers continue to provide unofficial security patches, these are temporary fixes that don’t address the platform’s deeper architectural limitations.

By 2025, the differences between the two platforms are stark:

• Magento 1: Legacy technology, unsupported, limited integrations, high security risks.
• Magento 2 (Adobe Commerce): Modern architecture, faster performance, improved scalability, integration with cutting-edge tools like AI, advanced marketing automation, and seamless mobile-first experiences.

For businesses, the decision to migrate is often tied not only to performance but also to compliance with data protection regulations, payment security standards, and customer trust expectations.

Why Are Businesses Still on Magento 1 in 2025?

It may surprise many to learn that some businesses continue to operate Magento 1 stores even five years after its official end of life. The reasons are complex:

1. Cost Constraints: Migration is expensive, and many small to mid-sized businesses delayed the investment, hoping to extract more life from their existing platform.
2. Customization Lock-In: Magento 1 stores often feature years of customized code, themes, and extensions that are difficult to migrate without significant redevelopment.
3. Risk Aversion: Businesses with steady revenue streams may fear migration downtime or performance issues during the transition.
4. Underestimation of Risk: Many store owners assume that using third-party security patches is sufficient to keep their store running safely, even though this is a dangerous gamble.

While these reasons are understandable, the long-term disadvantages of staying on Magento 1 are becoming more pronounced every year.

Risks of Staying on Magento 1 in 2025

1. Security Vulnerabilities
   • With no official patches, Magento 1 sites are highly vulnerable to exploits.
   • Hackers actively target legacy platforms, and even small businesses face data breaches that can cost millions in penalties and reputational damage.
2. PCI DSS Non-Compliance
   • Payment processors require strict compliance with Payment Card Industry Data Security Standards (PCI DSS). Running an unsupported platform often puts stores out of compliance, leading to higher fees or even refusal from payment gateways.
3. Integration Limitations
   • Modern e-commerce relies on integrations with CRMs, AI tools, ERP systems, and marketing automation. Most new integrations are built for Magento 2, leaving Magento 1 businesses cut off from innovation.
4. Higher Maintenance Costs
   • Ironically, keeping Magento 1 alive in 2025 often costs more than migrating. Businesses spend heavily on custom security patches, server monitoring, and outdated extension fixes, without gaining any competitive edge.
5. Customer Experience Risks
   • Magento 1’s outdated architecture results in slower site speeds, poor mobile performance, and less flexibility with modern design frameworks. Customers expect fast, seamless experiences in 2025; lagging behind means losing conversions.

Benefits of Migrating to Magento 2

If the risks of staying on Magento 1 make the case for migration, the benefits of Magento 2 seal the deal. Migrating isn’t just about avoiding disaster; it’s about unlocking growth potential.

1. Modern Architecture
   • Built with PHP 8, HTML5, and RequireJS, Magento 2 is far more robust and future-ready than Magento 1’s outdated codebase.
   • The modular architecture allows easier upgrades, customization, and scalability.
2. Improved Performance and Speed
   • Magento 2 supports full-page caching, Varnish integration, and optimized indexing, making it significantly faster.
   • Page load speeds are critical for SEO and conversion rates, especially in mobile-first commerce.
3. Mobile-First and PWA Capabilities
   • With mobile commerce dominating, Magento 2 offers Progressive Web App (PWA) Studio, enabling app-like shopping experiences directly from the browser.
   • Businesses migrating now can build mobile-first stores without needing separate mobile apps.
4. Enhanced Security
   • Regular security patches, native two-factor authentication, and better password management keep stores compliant and secure.
5. Advanced Marketing and Analytics Tools
   • Integration with Adobe Experience Cloud, Adobe Sensei AI, and other third-party marketing tools gives Magento 2 businesses a competitive edge.
6. Scalability for Growth
   • Magento 2 can handle large product catalogs, global operations, and complex checkout processes much better than Magento 1.
   • Cloud hosting options through Adobe Commerce Cloud further enhance scalability.

The Migration Challenge

While the benefits are undeniable, the migration itself is a major undertaking. Unlike a simple upgrade, moving from Magento 1 to Magento 2 is essentially a full rebuild. Themes, extensions, and custom code are incompatible, requiring redevelopment or replacement.

Migration involves:

• Data Migration: Products, customers, orders, categories, and CMS content must be carefully transferred.
• Theme Redevelopment: Magento 1 themes cannot be reused; a new design must be created.
• Extension Replacement: Many Magento 1 extensions have Magento 2 equivalents, but not all. Businesses often need to purchase new ones or custom-develop features.
• Testing and QA: Comprehensive testing ensures performance, security, and compatibility.

All of this translates into significant costs and time investments, which we’ll break down in detail in later sections of this article.

The Strategic Timing of Migration in 2025

Some businesses have delayed migration for years, but by 2025, the cost-benefit equation tips heavily in favor of migration. With customers expecting personalized, AI-driven shopping experiences, and with compliance requirements tightening, operating on Magento 1 is both riskier and more expensive than transitioning.

Moreover, with advancements in automation and migration tools, as well as the maturity of Magento 2’s ecosystem, businesses migrating now face fewer uncertainties compared to the early years of Magento 2 adoption.

Setting the Stage for Cost Analysis

Now that we’ve established why migrating Magento 1 to Magento 2 is critical in 2025, the next sections of this article will dive into the actual costs. From development and design to extensions, hosting, and long-term maintenance, we’ll provide a full cost breakdown so businesses can budget strategically for this investment.

Part 2: Development & Design Costs Breakdown

Migrating from Magento 1 to Magento 2 is not a simple upgrade—it’s closer to rebuilding your online store from the ground up. Unlike other CMS or eCommerce platforms where version upgrades might be incremental, Magento 2 was designed on an entirely new architecture. This means that much of the code, themes, and extensions built for Magento 1 are not compatible with Magento 2.

In this section, we’ll explore in detail the development and design costs that businesses face when planning their migration. We’ll analyze everything from custom theme redevelopment to front-end design, data handling, and development hours. By the end of this part, you’ll have a clear understanding of why development costs often make up the largest portion of Magento migration budgets in 2025.

Why Development and Design Are the Costliest Components

The biggest misconception among Magento 1 store owners is that migration is just a matter of transferring files and updating settings. In reality, the entire front-end and back-end of the store must be re-engineered to meet Magento 2 standards.

Here’s why development costs dominate:

1. Themes Are Incompatible
   • Magento 1 themes cannot be reused in Magento 2.
   • Even if you want to keep the same look and feel, developers must rebuild the theme from scratch using Magento 2’s Luma or Blank theme as a base.
2. Extensions Don’t Carry Over
   • Most Magento 1 extensions don’t work in Magento 2, so equivalent modules must be purchased or custom-developed.
3. New Architecture Demands Expertise
   • Magento 2 uses technologies like PHP 8, RequireJS, and Knockout.js, which demand a higher skill level than Magento 1.
   • Developers need to restructure code, rewrite custom modules, and ensure performance optimization.
4. Customization Complexity
   • Many Magento 1 stores have years of customization layered on. Migrating these features often requires custom coding in Magento 2, which increases development hours.

Front-End Development Costs

The front-end design is the customer-facing side of your store, and it plays a crucial role in migration costs.

1. Theme Redevelopment
   • A completely new theme must be designed and developed for Magento 2.
   • Costs vary depending on whether you:
     • Use a ready-made Magento 2 theme: $300–$1,000 (license cost) + $2,000–$5,000 for customization.
     • Develop a custom theme from scratch: $10,000–$30,000 depending on complexity.
2. Responsive & Mobile-First Design
   • In 2025, mobile commerce accounts for over 70% of online sales in many regions.
   • Magento 2 themes must be mobile-first and often integrate with PWA Studio for app-like user experiences.
   • PWA integration adds $5,000–$20,000 to development costs depending on scope.
3. UI/UX Enhancements
   • Migration offers a chance to modernize your design. Many businesses invest in improving user flows, optimizing checkout, and creating intuitive navigation.
   • UI/UX redesign typically ranges from $3,000–$15,000 depending on research and testing involved.

Back-End Development Costs

The back-end is where much of the migration complexity lies.

1. Custom Module Redevelopment
   • Custom modules written for Magento 1 won’t work in Magento 2.
   • Businesses need to either:
     • Replace them with equivalent Magento 2 extensions.
     • Have developers rewrite them from scratch.
   • Depending on complexity, each custom module can cost between $1,000–$10,000 to redevelop.
2. Extension Replacements
   • On average, Magento 1 stores use 20–50 extensions.
   • Equivalent Magento 2 extensions may cost $50–$500 each, plus integration and testing.
   • Total extension-related costs can run from $5,000–$15,000.
3. Custom Features & Integrations
   • ERP, CRM, shipping solutions, marketing automation, and payment gateways need to be re-integrated with Magento 2.
   • Complex third-party integrations often cost $3,000–$20,000 depending on the number of APIs and level of customization required.
4. Performance Optimization
   • Magento 2 supports Varnish, Redis, Elasticsearch, and other optimization tools, but these require setup and fine-tuning.
   • Performance optimization can add $2,000–$7,000 to development costs.

Data Migration Costs

Data is the lifeblood of an eCommerce business. Migrating thousands—or millions—of product SKUs, customer profiles, orders, reviews, and content requires careful handling.

1. Magento Data Migration Tool
   • Adobe provides a Magento 2 Data Migration Tool, but it still requires expert configuration.
   • Developers must handle discrepancies in database structure between Magento 1 and Magento 2.
2. Types of Data to Migrate
   • Products (simple, configurable, grouped, bundled).
   • Customer accounts.
   • Order history.
   • CMS pages and blog content.
   • Custom attributes.
3. Cost Range
   • Small stores (under 10,000 SKUs): $2,000–$5,000.
   • Mid-sized stores (50,000–100,000 SKUs): $8,000–$20,000.
   • Enterprise-level (500,000+ SKUs): $25,000–$50,000+.

The more complex the product structure and historical order data, the higher the cost.

Testing & Quality Assurance (QA)

Testing is a hidden but vital cost driver. Skimping on QA can lead to bugs, checkout issues, or broken integrations after migration.

1. Functional Testing
   • Ensures all store features (checkout, search, cart, filters, product display, etc.) work correctly in Magento 2.
2. Integration Testing
   • Validates that third-party APIs (payment gateways, shipping, CRM, ERP) are working seamlessly.
3. Performance & Load Testing
   • Critical for high-traffic stores. Testing ensures the store can handle peak loads, especially during seasonal sales.
4. Cross-Device Testing
   • The store must function smoothly across desktops, tablets, and smartphones.

Cost of QA & Testing: $5,000–$15,000 depending on store complexity.

Developer Rates in 2025

The cost of hiring developers is a major factor in total migration expenses. Rates vary by region:

• US, UK, Canada, Australia: $100–$200/hour.
• Eastern Europe: $40–$80/hour.
• India & Southeast Asia: $20–$50/hour.

On average, a Magento 1 to Magento 2 migration requires 500–1,000 development hours depending on complexity. This means development alone can range from $25,000 to $150,000+, depending on the developer’s location and expertise.

Hidden Development Costs

Businesses often underestimate the following hidden costs:

1. Training Staff
   • Admin interfaces in Magento 2 are different from Magento 1, requiring training for employees.
   • Training costs: $1,000–$5,000.
2. Downtime Planning
   • Careful scheduling is needed to minimize downtime during migration.
   • Any downtime costs revenue; planning for it may involve extra development hours.
3. Bug Fixes & Post-Launch Support
   • Even after migration, bugs often surface during the first 1–3 months.
   • Post-launch support usually costs $2,000–$10,000.

Total Development & Design Cost Range

When combining all of the above, here’s a realistic cost range for development and design in 2025:

• Small Business Store: $25,000–$40,000.
• Mid-Sized Store: $50,000–$100,000.
• Enterprise Store: $120,000–$250,000+.

These numbers represent the largest single category of costs in the migration process, and they highlight why many businesses delayed the move. But as seen in Part 1, delaying is often more expensive in the long run.

Part 3: Extensions, Hosting & Infrastructure Costs

In Part 2, we examined how development and design make up the largest portion of Magento migration expenses. But development alone is only half the story. The other critical cost drivers are extensions, hosting, and infrastructure, all of which are essential to ensure your Magento 2 store functions properly and delivers a seamless customer experience.

Migrating from Magento 1 to Magento 2 is an opportunity to rethink not only your design but also your technology stack. Old extensions, outdated servers, and inefficient hosting setups can drag performance down and add risks. By contrast, investing wisely in infrastructure and extensions can future-proof your store.

In this section, we’ll break down the costs of Magento 2 extensions, hosting environments, and infrastructure optimizations.

Magento 2 Extensions: The Replacement Challenge

Magento 1 stores often rely heavily on extensions—sometimes 20 to 50 modules or more—to handle everything from SEO and layered navigation to payment gateways and shipping rules. Unfortunately, Magento 1 extensions cannot be reused in Magento 2.

Why Extensions Must Be Replaced

1. Incompatibility: Magento 2 has a completely different architecture, meaning Magento 1 extensions won’t function.
2. Feature Redundancy: Some features that required extensions in Magento 1 (like advanced caching or two-factor authentication) are now native in Magento 2.
3. Vendor Availability: Not all Magento 1 extension vendors have released Magento 2 versions. Businesses may need to switch providers.
4. Custom Work: If an extension has no Magento 2 equivalent, businesses must commission custom development.

Cost of Magento 2 Extensions

1. Basic Extensions (SEO, analytics, payment gateways): $50–$500 per extension.
2. Advanced Extensions (ERP/CRM integrations, layered navigation, advanced search, B2B modules): $500–$2,500 per extension.
3. Custom-Built Extensions: $2,000–$10,000 depending on functionality.

Most mid-sized stores spend between $5,000 and $15,000 on extensions during migration. Enterprise stores with highly customized needs can spend upwards of $25,000–$50,000.

Hidden Costs of Extensions

• Integration & Testing: Installing extensions isn’t enough; they must be configured and tested for conflicts. This often doubles the cost of the extension itself.
• Annual License Renewals: Many Magento 2 extensions require yearly renewal fees, typically 20–30% of the original price.
• Support & Updates: Premium support plans can add hundreds or thousands of dollars annually.

Hosting Costs for Magento 2

Hosting is another critical expense. Magento 2’s advanced features—like full-page caching, Elasticsearch, and heavy database usage—demand stronger infrastructure compared to Magento 1. Hosting costs vary widely depending on traffic, catalog size, and whether you choose shared hosting, VPS, dedicated servers, or cloud solutions.

Hosting Options in 2025

1. Shared Hosting (Not Recommended)
   • Cost: $20–$100/month.
   • Risks: Poor performance, limited scalability, and security concerns.
   • Suitable only for very small stores (but not ideal for Magento).
2. VPS Hosting
   • Cost: $100–$400/month.
   • Provides dedicated resources but still limited scalability.
   • Good for small to medium stores with modest traffic.
3. Dedicated Server Hosting
   • Cost: $300–$1,500/month.
   • Strong performance but limited flexibility.
   • Better suited for larger catalogs or mid-sized stores.
4. Cloud Hosting (AWS, Google Cloud, Azure, Adobe Commerce Cloud)
   • Cost: $500–$5,000+/month depending on resources.
   • Offers scalability, redundancy, and global availability.
   • Adobe Commerce Cloud (Magento’s official cloud solution) includes auto-scaling, CDN, and advanced monitoring but comes at a premium.

Factors Affecting Hosting Costs

• Catalog Size: More SKUs = higher server requirements.
• Traffic Volume: Seasonal spikes (Black Friday, holiday sales) demand scalable hosting.
• Global Operations: Stores with international customers need CDNs (Content Delivery Networks) for faster delivery.
• Custom Integrations: ERP or CRM connections can increase database loads.

On average, hosting for Magento 2 costs:

• Small Stores: $1,500–$5,000 annually.
• Mid-Sized Stores: $6,000–$20,000 annually.
• Enterprise Stores: $30,000–$100,000+ annually.

Infrastructure Costs

Beyond hosting and extensions, infrastructure setup is a key migration expense. Magento 2 requires a modern stack of technologies, and configuring them properly is critical for performance.

Infrastructure Requirements for Magento 2

1. Web Servers
   • Apache or Nginx optimized for Magento 2.
   • Costs: $500–$2,000 setup + $100–$500/month maintenance.
2. Database Servers
   • MySQL or MariaDB, often deployed in clusters for enterprise-level scalability.
   • Costs: $1,000–$5,000 setup.
3. Caching Systems
   • Redis and Varnish are critical for speed.
   • Setup Costs: $1,000–$3,000.
4. Search Infrastructure
   • Magento 2 requires Elasticsearch (or OpenSearch).
   • Setup Costs: $500–$2,000.
5. Content Delivery Network (CDN)
   • Providers like Cloudflare, Akamai, or Fastly improve global performance.
   • Costs: $200–$1,000/month depending on traffic.
6. Security Enhancements
   • SSL certificates, Web Application Firewalls (WAF), and DDoS protection.
   • SSL: $50–$500/year.
   • WAF/DDoS services: $200–$2,000/month.

Total Infrastructure Cost Estimates

• Small Stores: $5,000–$10,000 (setup + first year).
• Mid-Sized Stores: $15,000–$30,000.
• Enterprise Stores: $50,000–$150,000+.

Why Infrastructure Investment Matters

Many businesses hesitate to invest heavily in infrastructure during migration, but underinvestment can backfire. Poor hosting or infrastructure leads to:

• Slow Load Times: Directly impact SEO rankings and conversion rates.
• Downtime During Traffic Surges: Missed revenue during peak shopping seasons.
• Security Vulnerabilities: Outdated setups are prone to breaches.
• Scalability Issues: Difficulty expanding globally or handling large catalogs.

By contrast, a well-optimized infrastructure investment ensures long-term stability and can actually lower maintenance costs over time.

Comparing Magento 1 vs. Magento 2 Hosting Needs

To illustrate the difference, here’s how Magento 1 and Magento 2 hosting requirements compare:

• Magento 1: Could run reasonably well on modest VPS hosting with minimal caching layers.
• Magento 2: Requires more memory, stronger servers, and advanced caching tools (Redis, Varnish).

This means businesses that ran Magento 1 on $100/month hosting plans often find themselves paying $500–$1,000/month or more after migrating.

Combined Cost of Extensions, Hosting & Infrastructure

When we add up the different components, here’s a realistic cost range:

• Small Store Migration:
  • Extensions: $5,000–$10,000
  • Hosting: $1,500–$5,000 annually
  • Infrastructure: $5,000–$10,000
  • Total: $11,500–$25,000+
• Mid-Sized Store Migration:
  • Extensions: $10,000–$20,000
  • Hosting: $6,000–$20,000 annually
  • Infrastructure: $15,000–$30,000
  • Total: $31,000–$70,000+
• Enterprise Store Migration:
  • Extensions: $25,000–$50,000+
  • Hosting: $30,000–$100,000+ annually
  • Infrastructure: $50,000–$150,000+
  • Total: $105,000–$300,000+

What’s Next

At this point, we’ve covered development, design, extensions, hosting, and infrastructure costs. But there’s more to migration than just building the store. In Part 4, we’ll dive into project management, licensing, compliance, and long-term maintenance costs, which often catch businesses off guard but are essential for a realistic budget.

Part 4: Project Management, Licensing & Maintenance Costs

By now, we’ve covered the development, design, extension, hosting, and infrastructure costs involved in migrating from Magento 1 to Magento 2. These form the backbone of the migration budget. However, many businesses underestimate or overlook other essential expenses that significantly affect the total cost of ownership (TCO).

In this section, we’ll analyze the costs tied to project management, licensing, compliance, and ongoing maintenance. These areas may not be as visible as design or development, but they are just as crucial for ensuring a smooth migration and sustainable post-launch operations.

Project Management Costs

Migration projects are complex undertakings that often span several months to over a year depending on store size and requirements. Without structured project management, businesses risk missed deadlines, budget overruns, and operational chaos.

Role of Project Management in Migration

1. Planning & Roadmapping
   • Establishing scope, timelines, and deliverables.
   • Coordinating between developers, designers, QA teams, and business stakeholders.
2. Risk Mitigation
   • Identifying potential bottlenecks, such as data migration issues or third-party API conflicts.
   • Creating contingency plans for downtime or failures.
3. Communication & Collaboration
   • Ensuring that technical teams and business teams stay aligned.
   • Tracking progress with tools like Jira, Trello, or Asana.
4. Testing Coordination
   • Overseeing QA phases to guarantee smooth functionality before launch.

Cost of Project Management

• Hourly Rates: $50–$150/hour depending on region and expertise.
• Small Stores: $5,000–$10,000 (part-time project management).
• Mid-Sized Stores: $15,000–$30,000.
• Enterprise Stores: $40,000–$100,000+.

A good rule of thumb: project management typically accounts for 10–20% of total migration costs.

Licensing Costs

Another major cost factor is licensing, especially when businesses choose between Magento Open Source and Adobe Commerce (Magento Commerce).

Magento Open Source (Free Edition)

• Free to download and use.
• Still requires investments in hosting, development, and extensions.
• Best suited for small to mid-sized businesses with simpler needs.
• Costs are mostly indirect (extensions, custom features, support).

Adobe Commerce (Enterprise Edition)

• Paid version of Magento 2 with advanced features, including:
  • B2B functionality.
  • AI-driven product recommendations (Adobe Sensei).
  • Advanced marketing automation.
  • Cloud hosting with auto-scaling and CDN.
• Licensing fees depend on store revenue.

Adobe Commerce Licensing Costs (2025 Estimates)

• $22,000/year for revenue up to $1M.
• $32,000–$75,000/year for revenue between $1M–$5M.
• $125,000–$190,000/year for revenue above $25M.

For mid-sized and enterprise businesses, these licensing costs must be budgeted in addition to migration expenses.

Compliance Costs

In 2025, compliance is more important than ever. Running an eCommerce business without meeting security and data protection standards can result in legal and financial penalties.

Key Compliance Areas

1. PCI DSS (Payment Card Industry Data Security Standard)
   • Ensures secure handling of customer credit card data.
   • Magento 1 stores are often non-compliant due to lack of updates.
   • Compliance audits can cost $5,000–$20,000 annually depending on store size.
2. GDPR (General Data Protection Regulation)
   • Mandatory for businesses dealing with EU customers.
   • Requires data transparency, consent management, and secure storage.
   • Implementation costs: $2,000–$10,000 depending on business scale.
3. CCPA (California Consumer Privacy Act) and Similar Regulations
   • U.S. states and other countries have implemented strict privacy rules.
   • Compliance setup costs: $2,000–$8,000.
4. Accessibility (ADA Compliance)
   • Websites must be accessible to users with disabilities.
   • Requires testing, remediation, and ongoing monitoring.
   • Costs: $3,000–$15,000 depending on adjustments required.

Total Compliance Costs

• Small Stores: $5,000–$15,000.
• Mid-Sized Stores: $20,000–$40,000.
• Enterprise Stores: $50,000–$100,000+.

Ongoing Maintenance Costs

Even after migration is complete, your Magento 2 store will need continuous support to remain secure, fast, and competitive.

Types of Maintenance

1. Security Patches & Updates
   • Adobe regularly releases patches for Magento 2.
   • Developers must test and deploy these to avoid vulnerabilities.
2. Bug Fixes
   • Post-launch, bugs often appear due to extension conflicts, server issues, or browser updates.
3. Performance Monitoring
   • Tools like New Relic or Datadog help track performance and spot issues.
4. Server Management
   • Hosting environments must be updated and optimized regularly.
5. Feature Enhancements
   • Businesses often add new features over time (e.g., loyalty programs, AI-driven personalization).

Cost of Maintenance

• Small Stores: $1,000–$3,000/month ($12,000–$36,000 annually).
• Mid-Sized Stores: $4,000–$10,000/month ($48,000–$120,000 annually).
• Enterprise Stores: $15,000–$30,000/month ($180,000–$360,000 annually).

Maintenance is often underestimated but is essential for ensuring ROI on your migration investment.

Staff Training Costs

Magento 2’s admin panel and workflows differ significantly from Magento 1. Staff training ensures your team can efficiently manage products, orders, promotions, and reports.

• Training Workshops: $2,000–$5,000.
• Online Courses & Certifications: $500–$2,000 per staff member.
• In-House Custom Training: $5,000–$10,000 depending on depth.

While training costs are relatively small compared to development, they pay dividends in improved efficiency and fewer mistakes.

Total Cost Estimates (Project Management + Licensing + Compliance + Maintenance)

Here’s how these costs stack up depending on store size:

• Small Stores
  • Project Management: $5,000–$10,000
  • Licensing: $0 (Magento Open Source)
  • Compliance: $5,000–$15,000
  • Maintenance: $12,000–$36,000 annually
  • Training: $2,000–$5,000
  • Total: $24,000–$66,000+ (excluding development & hosting from earlier parts).
• Mid-Sized Stores
  • Project Management: $15,000–$30,000
  • Licensing: $22,000–$75,000 (Adobe Commerce)
  • Compliance: $20,000–$40,000
  • Maintenance: $48,000–$120,000 annually
  • Training: $5,000–$10,000
  • Total: $110,000–$275,000+.
• Enterprise Stores
  • Project Management: $40,000–$100,000+
  • Licensing: $75,000–$190,000
  • Compliance: $50,000–$100,000+
  • Maintenance: $180,000–$360,000 annually
  • Training: $10,000–$20,000
  • Total: $355,000–$770,000+.

Why These Costs Are Often Overlooked

Businesses often budget only for development and design but fail to plan for long-term operational expenses. The truth is, Magento is a powerful but resource-heavy platform. Without allocating funds for compliance, licensing, and ongoing maintenance, even the best-built store can become vulnerable and inefficient within months.

Migration should therefore be seen not as a one-time project but as a long-term investment in the future of the business.

Part 5: Full Cost Breakdown & Strategic Budgeting

After covering development, design, extensions, hosting, infrastructure, project management, licensing, compliance, and maintenance, it’s time to compile a comprehensive cost overview. This final part consolidates all migration expenses, provides realistic budgeting ranges, and offers strategies to optimize costs while maximizing ROI in 2025.

Total Cost Components

Before breaking down total migration costs, let’s summarize the major components:

1. Development & Design
   • Theme redevelopment, front-end design, custom modules, data migration, testing, and QA.
2. Extensions, Hosting & Infrastructure
   • Replacement of Magento 1 extensions, server setup, hosting fees, CDN, caching, search infrastructure, and security.
3. Project Management, Licensing & Maintenance
   • Planning, coordination, Adobe Commerce licensing (if applicable), compliance, staff training, and ongoing maintenance.

Each of these categories can vary widely based on store size, customization complexity, geographic region, and business objectives.

Full Cost Estimates by Store Size

1. Small Stores

Assumptions:

• Product SKUs: <10,000
• Traffic: Low to moderate
• Minimal custom modules
• Magento Open Source

Key Notes: Small stores benefit from using off-the-shelf themes and extensions. Budget flexibility is critical for unanticipated post-launch issues.

2. Mid-Sized Stores

Assumptions:

• Product SKUs: 50,000–100,000
• Traffic: Moderate to high
• Some custom modules
• Adobe Commerce or Open Source depending on business choice

Key Notes: Mid-sized stores often face the biggest challenge in migrating custom modules and integrating multiple third-party systems. Cloud hosting and high-performance infrastructure are recommended.

3. Enterprise Stores

Assumptions:

• Product SKUs: 500,000+
• Traffic: High (global operations)
• Multiple custom modules, advanced integrations
• Adobe Commerce with cloud hosting

Key Notes: Enterprise migrations require detailed planning, dedicated teams, and comprehensive testing to ensure zero downtime and global scalability.

Strategic Budgeting Tips

Migrating to Magento 2 in 2025 is a major investment, but there are strategies to optimize costs:

1. Prioritize Core Features

• Not every Magento 1 customization needs to be replicated.
• Focus on features that directly impact sales and customer experience.
• Replace outdated extensions with native Magento 2 features where possible.

2. Consider Phased Migration

• For enterprise stores, a phased approach reduces risk.
• Begin with a staging environment, migrate core functionality, then add complex features gradually.

3. Use Pre-Built Themes & Extensions

• Off-the-shelf Magento 2 themes reduce design costs.
• Carefully evaluate extension vendors to avoid unnecessary custom development.

4. Invest in Cloud Hosting

• Cloud hosting may appear expensive upfront but can reduce downtime, scaling costs, and performance bottlenecks.
• Platforms like Adobe Commerce Cloud offer managed services that save operational overhead.

5. Allocate Budget for Post-Launch Support

• Even a perfect migration may have post-launch issues.
• Allocate at least 10–15% of the total migration budget for support and bug fixes.

6. Optimize Maintenance Costs

• Use monitoring tools to proactively identify performance issues.
• Schedule regular updates to reduce emergency fixes.
• Leverage training to minimize human errors.

Migration ROI Considerations

The cost of Magento 2 migration can be high, but the return on investment (ROI) is measurable:

1. Revenue Growth
   • Faster site speed improves conversions.
   • Mobile-first and PWA experiences increase customer engagement.
2. Reduced Security Risks
   • Avoid costly breaches and PCI fines.
3. Lower Long-Term Maintenance Costs
   • Magento 2’s modern architecture is easier to maintain than legacy Magento 1.
4. Scalability & Future-Proofing
   • Magento 2 supports global expansion, large catalogs, and new technologies like AI-driven personalization.
5. Competitive Advantage
   • Staying on Magento 1 limits your ability to innovate and compete with modern stores.

Final Thoughts

Migrating from Magento 1 to Magento 2 in 2025 is no longer optional for serious eCommerce businesses. While the investment ranges from tens of thousands to over a million dollars for enterprise stores, the benefits in terms of performance, security, compliance, and growth potential far outweigh the costs.

By carefully planning your migration, prioritizing features, choosing the right hosting and extensions, and accounting for project management and maintenance, businesses can ensure a successful transition that drives long-term ROI.