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For many companies today, the question is no longer "Should we migrate to the cloud?" but "What should we migrate, and how quickly should we do it?"
By understanding the challenges involved in large-scale cloud migrations, businesses can create more effective implementation strategies and avoid common pitfalls such as security vulnerabilities and unforeseen expenses.
Organizations that migrate at least 60% of their IT systems and operations to the cloud can experience up to an 11.2% annual increase in profits—an increase rarely achieved with exclusive reliance on on-premise computing. However, embarking on such a significant digital transformation presents various common challenges.
Consider these statistics:
50% of cloud migration projects either fail or stall.
56% of businesses encounter compliance and security challenges.
44% of businesses initiate their cloud migration with insufficient planning.
Understanding these pitfalls is crucial. Here, we delve into the most common challenges associated with cloud migration and provide practical solutions to help ensure your organization isn't among the 50% whose cloud projects falter.
One of the simplest methods for migrating data and applications is to "lift and shift" them into a cloud environment. However, moving data and applications from one environment to another is rarely straightforward. Legacy systems often present unique challenges due to their outdated technology and compatibility issues with modern cloud platforms.
Solution: Organizations need to thoroughly assess the compatibility of legacy applications with cloud platforms to prevent issues during migration. This involves comprehensive testing and validation to pinpoint and tackle integration challenges.
Optimizing cloud infrastructure to support legacy systems, rearchitecting applications, updating configurations, or adopting cloud-native solutions can enhance compatibility. Engaging expert cloud migration services may be critical for preserving system integrity.
Cloud migration involves transitioning data storage and applications from on-premises environments to the cloud, often executed in stages to ensure each step is fully completed before proceeding. However, organizations with intricate IT architectures find developing and implementing a cloud migration strategy challenging due to complex interdependencies.
Solution: Start by conducting a comprehensive assessment of your IT architecture to identify interdependencies and prioritize critical systems.
Develop a phased migration strategy, beginning with less critical systems to test the process. Collaborate across teams to align goals, leverage automation for streamlined data migration, monitor progress carefully, and continuously refine your strategy.
Vendor lock-in is a significant concern for businesses adopting cloud services, limiting flexibility and increasing costs in the long run. Opting for multi-cloud or hybrid cloud strategies allows businesses to distribute workloads across different cloud providers, reducing reliance on a single vendor and enhancing scalability and resilience.
Solution: Select cloud services offering interoperability and data portability. Evaluate the compatibility of cloud providers with existing systems and applications. Strategically choose cloud services based on business needs and long-term objectives to mitigate vendor lock-in risks.
Effective management of prioritization in cloud migration projects is vital for aligning business and technical objectives. Prioritizing key initiatives based on business impact and technical feasibility helps optimize resource allocation and project timelines.
Solution: Understand dependencies between different workstreams and infrastructure components. Balance business requirements with technical constraints, mitigate risks, and optimize project outcomes. Effective communication and stakeholder engagement play significant roles in aligning priorities and expectations throughout the cloud migration process.
Selecting the most suitable cloud services for your business is crucial for optimizing performance and maximizing the benefits of cloud migration. The right cloud infrastructure allows companies to concentrate on core strengths while efficiently developing and deploying new applications.
Solution: Start by assessing specific requirements, defining business goals, technical needs, and compliance obligations.
Ensure the provider meets industry standards like PCI DSS, SOC, and ISO 27001. Consider scalability, performance, pricing models, and total cost of ownership. Evaluate cost-optimization features and the provider’s global presence and data center availability.
Large-scale data migrations require strategic planning to ensure data integrity and system functionality are maintained. The absence of a solid cloud migration plan can lead to significant challenges during integration.
Solution: Analyze business requirements, evaluate different use cases, and formulate a comprehensive cloud migration plan.
Conduct thorough pre-migration assessments, audit existing data, and identify scalability needs. Develop a detailed blueprint with defined phases, establish milestones and KPIs, and proactively manage risks to avoid disruptions and financial overruns.
Enhancing cloud migration security is critical for protecting business-critical data and mitigating potential risks. Implement robust security measures such as encryption, access controls, and monitoring tools.
Solution: Continuously monitor and detect suspicious activities within the cloud environment. Establish incident response protocols, conduct comprehensive risk assessments, and prioritize cloud migration security to build trust with customers and ensure compliance with data protection regulations.
The growing demand for cloud migration expertise has led to a significant skill shortage, posing challenges for organizations aiming to transition to the cloud.
Solution: Invest in employee training, upskilling, and recruitment strategies. Collaborate with outsourcing partners, cloud providers, and industry experts to develop talent pipelines. Prioritize talent development and retention to build a skilled workforce capable of driving innovation and transformation in the cloud.
Managing and controlling cloud migration costs is critical for optimizing the financial impact of transitioning to the cloud.
Solution: Implement strategies to right-size cloud resources, leverage cost-saving mechanisms, and optimize workload distribution. Monitor usage patterns, performance metrics, and service-level agreements to identify cost-reduction opportunities and enhance operational efficiency.
A common issue following cloud migration is the diminished performance of applications due to legacy systems' complexity and the variety of cloud-based services.
Solution: Engage in cloud capacity planning to analyze and measure application performance against anticipated demand. Allocate appropriate resources to ensure optimized application performance in the cloud environment.
Navigating the complexities of cloud migration requires a thorough understanding of potential challenges and the implementation of strategic solutions.
By addressing the issues described above and with careful planning and execution, organizations can harness the full benefits of cloud computing, driving innovation, efficiency, and growth in today's competitive landscape.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Kyrylo Reitor Chief Marketing Officer at International Fintech Business
06 November
Konstantin Rabin Head of Marketing at Kontomatik
Erica Andersen Marketing at smartR AI
04 November
Prakash Bhudia HOD – Product & Growth at Deriv
01 November
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