How To Develop a Successful Cloud Migration Strategy: Plans, Process, Costs, and More

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Introduction

Embracing cloud technology is essential for success in today’s digital world. As businesses increasingly shift towards cloud expansion, it becomes evident that this transition is more challenging than it appears. Many cloud initiatives face setbacks, and extracting the benefits of cloud investments proves difficult without precision and systematic planning. A successful transition requires the right cloud migration strategy supported by thorough planning. Visualizing these strategies as a roadmap can guide your IT assets to their new digital home through well-informed decisions and deliberate execution.

Did you know that, according to Zippa’s findings, in 2023, a whopping 94% of companies were using cloud services? This surge originated in 2020, when 61% of businesses moved to the cloud due to the COVID-19 pandemic, emphasizing the growing importance of cloud solutions.

But here’s the kicker: Gartner now estimates that by 2027, more than 50% of enterprises will specifically use industry cloud platforms to accelerate their business initiatives, up from less than 15% in 2023. And if that’s not impressive enough, by 2024, there’ll be a significant shake-up: over 45% of IT spending on system infrastructure, software, and outsourcing will move from traditional to cloud solutions.

It isn’t just a change; it’s a tech revolution where cloud migration has emerged as one of the most groundbreaking forces. So, let’s start by understanding every aspect of cloud migration strategies.

What is Cloud Migration Strategy?

A cloud migration strategy details how a company moves its existing applications and associated data from on-site or nearby servers to the cloud. It’s a plan for transitioning software and data from local to remote cloud servers. This shift results from the desire to move away from outdated infrastructures, such as aging servers or inefficient hardware, and embrace the benefits of cloud computing. It includes well-known services such as Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure.

Migrating to the cloud is for more than just first-timers. If you already use the cloud, there’s always room to optimize. Thus, whether you are a cloud newbie or a seasoned user, a solid migration strategy is your ticket to a smoother, more cost-effective digital experience. Here, a cloud migration roadmap can come in handy. It can help answer questions like what to move, how to move it, and in what order, often called the 7R of migration. It provides insights into crafting successful on-premise to-cloud migration strategies, presenting a substantial opportunity for your business.

Common Cloud Migration Challenges

Here are the main challenges organizations encounter migrating to the cloud and their impact on business operations.

Lack of Strategy

Many organizations begin migrating to the cloud without thorough strategic planning. To ensure successful cloud adoption, a detailed end-to-end migration plan is essential. Each application and dataset has unique needs and may require different migration methods. Establish a clear business case for every workload moved to the cloud. You can always opt for a cloud maturity model to optimize your cloud strategy, manage risks, and achieve a more seamless transition to the cloud.

Know more about cloud migration risks in detail.

Cost Management

Organizations migrate to the cloud without defining clear KPIs to measure costs and savings post-migration, making it hard to assess economic success. Moreover, the evolving nature of cloud environments can lead to fluctuating costs as new services are added and usage levels rise.

Vendor Lock-In

Vendor lock-in is a frequent issue in cloud adoption. Providers offer numerous services, but many aren’t compatible with other platforms, making migration lengthy and expensive. Organizations often begin using a cloud service only to find it challenging to switch providers later if their needs change.

Data Security and Compliance

Safeguarding sensitive data from cloud security threats is necessary throughout and after migration. Ensuring regulatory compliance and adjusting to the cloud’s shared security framework requires detailed planning and meticulous implementation during migration.

Read More in Detail: Cloud Security Posture Management

Application Compatibility

Legacy applications often pose compatibility challenges with cloud environments, necessitating substantial modifications. Choosing the optimal approach—whether rehosting, refactoring, rearchitecting, rebuilding, or replacing applications—can be challenging and substantially impact both project timelines and costs.

Downtime and Service Disruption

Ensuring business continuity requires minimizing downtime. It necessitates strategic scheduling and thorough testing to avoid operational disruptions during migration.

Integration Issues

Achieving smooth integration between cloud services and on-premise systems is a challenging task. It demands extensive knowledge of both environments to preserve functionality and performance.

Know more about Cloud Governance.

The 7‘R’s of an Effective Cloud Migration Strategy

Implementing an Enterprise Cloud Migration Strategy can reduce costs, enhance efficiency, and boost overall performance. Here are seven types of cloud migration strategies for various cloud service models.

1. Rehost

Strategy Type: Relocating
A rehosting strategy, or “lift and shift,” is ideal for seamlessly transferring your existing database from on-premise to the cloud. This method allows for quick migration without code changes.

Cloud Migration tools include:

• AWS: CloudEndure Migration, VM Import/Export, and AWS Database Migration Service.
• Microsoft Azure: Azure Migrate.
• Google Cloud Platform: Cloud Storage Transfer Service.

Alternatively, choose a manual cloud migration approach for those who prefer a more hands-on method to enhance their cloud maturity.

The relocation process includes two modes:

• Cold Migration: This involves halting the workload, transferring it to the cloud, and reinstating it.
• Live Migration: This approach enables the transfer of a virtual machine from one environment to another without turning it off.

When to Opt For a Rehosting Strategy?

• Transitioning a large-scale enterprise.
• New to the cloud environment.
• Moving off-the-shelf applications.
• Facing a time-sensitive migration deadline.

2. Replatform

Strategy Type: Modification
The Replatform cloud migration strategy is an enhanced version of rehosting. It involves minimal configuration changes to applications to improve compatibility with the cloud without altering their core architecture. Similar to ‘lift, tinker, and shift,’ this method is often used to optimize applications for managed platforms like Google Cloud SQL or Amazon RDS, mainly focusing on database interactions.

When to Opt For a Replatform Strategy?

• Time crunch migration.
• Capitalize on cloud advantages without app refactoring.
• Migrating complex on-premise apps with minimal adjustments.

3. Refactor

Strategy Type: Re-architecting
The Refactor/ Re-architecture method involves rewriting applications entirely to align them with cloud-native applications. Imagine a traditional on-premise application with a monolithic architecture that you decide to move to the cloud. In this approach, you would not simplify, lift, and shift the application; instead, as a part of your cloud migration strategy, you would leverage microservices, serverless computing, and other native cloud technologies.

When to Opt For a Refactor Strategy?

• Your app stands to gain the most from leveraging cloud capabilities.
• Your business emphasizes scalability, speed, and performance.
• The on-premise app lacks compatibility and needs a comprehensive redesign.

4. Repurchase

Strategy Type: Replacement
This cloud migration strategy is known as “drop and shop.” It includes swapping out an on-site application with cloud-native vendor-packaged software, typically shifting to a Software as a Service (SaaS) application with similar features. This procedure might involve adjusting licensing arrangements and transitioning from on-premise licenses to new licenses offered by the cloud provider for their solution.

When to Opt For a Repurchase Strategy?

• You want to replace standard software functions.
• Legacy applications are incompatible with on-premise and demand cloud environments.

5. Retire

Strategy Type: Decommission
This cloud migration strategy focuses on eliminating or downsizing applications that are no longer useful or productive in your IT portfolio. Remove or scale down any application that isn’t worth migrating to the cloud. This strategy involves assessing all applications based on their utility, dependencies, and cost to the company. It is a less active cloud data migration strategy than other strategies, as no migration is involved.

When to Opt For a Retire Strategy?

• You want to archive applications with valuable data.
• Eliminating redundant applications to cut costs.
• Retire applications whose functionality can be integrated into another using microservices.

6. Relocate

Strategy Type: Hypervisor-Level Lift and Shift Migration
This cloud migration strategy strategy facilitates seamless migration of workloads between on-premises platforms (e.g., Kubernetes or VMware) and their cloud counterparts (e.g., GKE or EKS). The relocation approach minimizes downtime and disruption and doesn’t necessitate code rewriting or hardware acquisition. It ensures uninterrupted client connectivity, requires minimal configuration changes, and keeps operating expenses low by eliminating the need for staff retraining or hardware upgrades. The strategy also provides cost predictability by setting clear scalability limits.

When to Opt For a Relocate Strategy?

• When minimizing downtime or disruptions during migration is essential.
• You want to migrate workloads without rewriting or modifying application code.
• You are operating on-premises but want to enjoy cloud benefits without significant changes.
• There is compatibility between on-premises and cloud platforms.
• You need a quick and efficient migration when time is a critical factor.

7. Retain

Strategy Type: Revisit & Optimize
This cloud migration strategy, also known as re-visit, involves revisiting critical applications or parts of digital assets that require significant refactoring before migrating to the cloud. In some cases, it becomes evident that specific applications are better suited for on-premise arrangements or have recently undergone upgrades, making them suitable for retention. Other reasons for retaining applications include latency, compliance, regulatory constraints, or simply because it’s not cost-effective to migrate them.

When to Opt For a Retain Strategy?

• When implementing a hybrid cloud model during migration is required.
• Burdened with heavy investment in on-premise applications.
• Incompatibility of the legacy app with the cloud, but functions well on-premise.
• The decision to revisit an app later.

As you migrate to the cloud, a clear cloud maturity model can help guide your choices. This way, your business can fully benefit from the cloud and easily adapt to changes in the digital world.

Benefits of Adapting The Cloud Migration Strategies

Enterprises stand to reap substantial cloud migration benefits from well-crafted migration strategies. These advantages include:

1. Improved Scalability

A well-rounded cloud migration strategy improves scalability and agility by ensuring organizations access suitable cloud resource management when needed. It also allows for rapid and easy adjustments to meet evolving business demands.

2. Cost and Time Savings

Due to multiple sources and diverse destination platforms, migrating to the cloud can take months or years. However, a good cloud strategy can automate the process with smooth transitions without downtime. A well-planned migration strategy also identifies significant cost savings by optimizing cloud resources and reducing licensing, maintenance, and operations expenses.

Know more about Cloud migration costs

3. Reduced Downtime and Risks

An effective cloud computing migration strategy minimizes downtime, ensuring a smooth and efficient transition that minimally disrupts business operations. Additionally, it helps recognize prevalent challenges and potential risks associated with migrating to the cloud, reducing risks and ensuring seamless execution.

4. Enhanced Security and Compliance

Security-centric cloud migration strategies ensure solid and effective implementation of security measures, reducing the likelihood of security breaches and data loss throughout the migration process. Moreover, it guarantees strict adherence to regulatory requirements, thereby mitigating the potential for legal and financial repercussions.

You might like to read more about Multi-cloud Security.

5. Enhanced Performance

Transitioning to the cloud can significantly enhance performance and user experience. Cloud-based applications and websites can effortlessly scale to accommodate more users and increase throughput. Additionally, they can operate closer to user locations, reducing latency and providing a smoother, faster experience.

5 Phases of the Cloud Migration Process

Following these five phases of cloud migration, you’ll be well-equipped to craft a comprehensive and successful cloud migration strategy tailored to your organization’s unique requirements and goals.

Step 1: Prepare

Organizations must define their business goals, such as financial savings, operational efficiency, and increased scalability. Construct a business report for moving each application to the cloud by outlining the expected total cost of ownership (TCO) in contrast to the current TCO. Leverage cloud cost estimation tools to project future expenses accurately, factoring in realistic assumptions such as storage utilization, computing resources, instance types, operating systems, and specific performance and networking prerequisites.

Step 2: Plan

Create a detailed migration plan with a step-by-step process specifying the sequence for migrating workloads. Select your preferred cloud structure and identify necessary modifications to applications or data. Evaluate data needs to determine update frequency, compliance requirements, and which data can move early. Decide if data needs cleaning, select appropriate destination volumes, and determine if encryption is necessary for data at rest and in transit.

Step 3: Migrate

Migration requires moving data, applications, and various operations to the cloud. Ensuring data accessibility throughout this process is critical; any downtime or unavailability can disrupt business operations and lead to significant challenges. The same goes for keeping everything updated after the initial action. Test each part of the workload in the new environment before proceeding to the next task.

Step 4: Operate

Organizations enter the operational phase once they successfully transfer workloads to the cloud. In this stage, they handle tasks in the cloud, like monitoring how well everything is working, managing resources, and ensuring security and compliance. Throughout this phase, organizations should make ongoing improvements based on feedback and data, tweaking things as needed to optimize cloud operations.

Step 5: Optimize

In this final phase, organizations explore avenues to enhance their cloud environment and efficiently utilize resources. It includes fine-tuning how they operate in the cloud, finding ways to save money, and adding features or services designed for the cloud to boost performance. Optimization is an ongoing process, with organizations always looking for ways to improve how they use the cloud and get more value for their business.

Cloud Migration Best Practices

Following these best practices and choosing the right cloud migration strategy are essential for ensuring a smooth and successful transition.

1. Setting Goals

It is crucial to communicate the cloud migration plan clearly to all stakeholders. Develop a transparent business plan with defined timelines and milestones. This plan should outline the current infrastructure, methods for assessing progress, and success criteria. Document the strategy’s objectives, starting points, and key performance indicators (KPIs) to track progress and ensure alignment with your cloud migration goals. To be more precise, you can always start with a cloud readiness assessment.

2. Identify Migration Priorities

Identify applications and services for migration based on business priorities, complexity, and risk. Start with low-impact workloads to minimize disruptions. Take a gradual approach, focusing on one application at a time. Analyze your current IT infrastructure to select assets that benefit from cloud features. Plan to decommission outdated systems after migration.

3. Use Pricing Calculators

Due to the dynamic nature of cloud environments, even if initial costs seem low, cloud costs can quickly escalate. Strategies that worked for on-premise setups may become costly in the cloud. Companies should use cloud cost calculators from AWS, Azure, and Google Cloud to prevent unexpected expenses. These tools estimate the total cost of cloud setups and provide real-time optimization guidance.

4. Disaster Recovery Plan

Moving to the cloud means changing a setup proven to work. Even with a clear plan and careful execution, it’s essential to have backups and safety measures in case of unexpected issues. It is when a disaster recovery plan (DRP) becomes necessary. Many organizations have a DRP but often forget to update and test it. When creating a strategy to move to the cloud, organizations must ensure their DRP is reliable and ready to be used.

5. Train all Employees and IT Staff

Using the cloud is quite different from using in-house technology, especially when an organization is shifting from old-fashioned systems to the cloud for the first time. Employees have to learn how to work with a particular cloud provider, and this training isn’t a one-time thing because there are always updates. Therefore, the strategy for moving to the cloud must also think about the time and money spent on this ongoing training.

6. Test and Measure Migration Success

Migrating to the cloud extends beyond relocation; it includes comprehensive testing to ensure the new setup functions seamlessly. The plan should outline a testing schedule, and post-testing performance evaluation should align with the short- and long-term goals reflecting your cloud migration strategy.

7. Avoid Vendor Lock-In

Choosing the right cloud provider is critical due to its long-term impact. Consider not only the provider’s current offerings but also their technology roadmap. If a provider falls behind, it could affect your competitive edge. To mitigate this risk, some organizations use multiple cloud providers to leverage the best features from each, which aligns with their cloud migration strategies.

8. Monitor Performance and Security

Monitor cloud performance and security regularly. AWS CloudWatch is used for performance tracking, and AWS CloudTrail is used for compliance verification. Document every migration phase for alignment and collaboration. Integrate AWS Developer Tools to enhance code deployment and team efficiency.

9. Focus on Automation

Cloud services offer limited control, and to manage these limitations effectively, middleware should be used for automation and continuous integration (CI) and delivery (CD) processes.

10. Stay on Top of Updates

Companies transition to the cloud to ensure their infrastructure remains future-ready, as cloud providers frequently release new features. Businesses must keep abreast of these changes and include a routine upgrade schedule in their strategic plans. This approach ensures they fully benefit from the latest cloud advancements.

Trends and Future Developments of Cloud Migration

Explore current cloud innovation and trends and upcoming advancements in cloud migration, and discover how organizations can stay ahead by leveraging new opportunities.

1. Hybrid and Multi-Cloud Adoption

Integrating public, private, hybrid, and multi-cloud environments boosts agility, flexibility, and resilience while mitigating vendor lock-in risks.

2. Serverless Computing

Serverless architectures optimize application functionality and scalability in the cloud, reducing overhead costs and simplifying management.

3. Edge Computing

Edge computing brings data processing closer to where it’s generated, working harmoniously with central cloud resources to boost overall efficiency.

4. AI/ML

Combining AI and ML with cloud computing enables companies to harness automation and advanced analytics for improved optimization and decision-making.

Know more about AI in Cloud computing.

5. Zero Trust Security Model

The Zero Trust model enforces continuous monitoring, rigorous access control, and identity verification to achieve top-tier security without compromise.

6. Data Modernization

Modernizing data involves using cloud-native databases, data lakes, and analytics services to provide more valuable insights and enhance organizational decision-making.

7. DevOps and CI/CD Pipelines

DevOps and Continuous Integration/Continuous Deployment (CI/CD) pipelines automate testing, application deployment, and process monitoring to streamline the development lifecycle.

8. Green Cloud Computing

Green cloud computing focuses on energy-efficient data centers and carbon-neutral initiatives, promoting environmental sustainability and awareness.

9. Implementing SaaS

The growing trend of Software-as-a-Service (SaaS) enables businesses to access and utilize software applications directly over the Internet, eliminating the need for local installations.

10. Regulatory Compliance Automation

Automation tools simplify managing and adhering to data protection and privacy regulations in the cloud, streamlining compliance with complex regulatory standards.

Conclusion

Frequently Asked Questions (FAQs)

What is a cloud readiness assessment?

A cloud readiness assessment checks if an organization is ready for cloud migration, identifying possible risks and needed changes.

How do you measure a cloud migration’s success?

Success can be measured by looking at cost savings, performance gains, user satisfaction, and meeting business goals.

What cost factors should you consider in a cloud migration?

Consider initial migration costs, ongoing cloud service fees, potential downtime, training, and optimization expenses.