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What Is Cloud Migration?A Step-by-Step Explanation for Businesses

What Is Cloud Migration? A Step-by-Step Explanation for Businesses
Complete Business Guide · 2025

What Is Cloud Migration?
A Step-by-Step Explanation for Businesses

Cloud migration is the process of moving a business’s digital assets — applications, data, databases, and IT infrastructure — from on-premises systems or legacy environments to a cloud-based platform. It enables organisations to reduce hardware dependency, improve scalability, and adopt a more flexible, cost-efficient model for managing technology.

A practical, jargon-free guide to understanding cloud migration, planning the process, and making it work for your business.

📖 14 min read 🗓 Updated 2025 🏢 For IT leaders, business owners & startups

1Introduction to Cloud Migration

Not long ago, most businesses ran their technology on servers they owned — physical machines sitting in an office room or a rented data centre. Managing those systems meant hiring IT staff, budgeting for hardware refreshes every few years, and accepting that scaling up was slow, expensive, and disruptive.

That model still exists, but it is no longer the default. Across industries, organisations are moving their operations to the cloud to gain flexibility, reduce infrastructure costs, and access capabilities that would be impossible to build and maintain in-house.

Cloud migration is how that transition happens. It is not a single action — it is a structured process that requires planning, the right strategy, and careful execution. Done well, it can transform how a business operates. Done poorly, it introduces new risks and unexpected costs.

Why it matters now

Businesses that delay cloud adoption increasingly find themselves at a competitive disadvantage. Cloud-native competitors can deploy new products faster, scale more efficiently, and absorb disruption more easily than organisations still reliant on ageing on-premises infrastructure.

89%
Of organisations use multi-cloud environments
$1T+
In IT spend shifting to cloud by 2025
3.4x
Faster product deployment after migration
35%
Average reduction in total IT cost

2What Cloud Migration Actually Is

Cloud migration refers to the process of relocating some or all of a company’s digital operations — data, applications, workloads, or entire IT environments — from on-premises hardware to a cloud computing platform, or from one cloud environment to another.

The scope of a migration varies significantly. Some businesses migrate a single application to reduce its operating costs. Others undertake a full enterprise cloud migration, moving every system and database in a phased programme that spans months or years. Both approaches are valid, depending on the organisation’s size, complexity, and objectives.

“Cloud migration is not just a technical exercise — it is a business transformation. The companies that treat it as such are the ones that extract the most value from it.”

It is also worth distinguishing between types of migration. Moving from on-premises to public cloud is the most common scenario, but organisations also migrate between cloud providers, from public to private cloud, or to a hybrid arrangement where some workloads remain on-premises and others move to the cloud.

Quick definition

Cloud migration is the planned movement of business data, applications, and IT workloads from local servers or legacy systems to cloud-based infrastructure — enabling organisations to benefit from on-demand scalability, reduced hardware dependency, and modern cloud hosting solutions.

3Why Businesses Migrate to the Cloud

Businesses migrate for a wide variety of reasons. Cost reduction is often the initial motivation, but organisations that plan their migration well tend to unlock benefits well beyond their original goals.

Primary reasons businesses move to the cloud

  • Scalable cloud infrastructure: Cloud environments scale on demand. A business can handle a 10x traffic spike without provisioning new hardware weeks in advance.
  • Cost efficiency: Replacing capital expenditure on hardware with predictable, usage-based operating costs frees up budget for growth initiatives.
  • Remote and distributed work: Cloud-based systems are accessible from anywhere with an internet connection, making them essential for modern distributed teams.
  • Business continuity and disaster recovery: Cloud providers offer built-in redundancy and automated backups that are difficult and expensive to replicate on-premises.
  • Access to advanced capabilities: AI, machine learning, data analytics, and automation tools are available as cloud services — no specialist infrastructure required.
  • Faster time to market: Development teams can provision new environments instantly, cutting the time it takes to test and launch new products or features.
  • Security and compliance: Leading providers maintain extensive cloud security solutions and hold certifications for frameworks such as ISO 27001, SOC 2, HIPAA, and GDPR.
  • Reduced IT management burden: Offloading infrastructure management to a provider allows internal teams to focus on strategic work rather than routine maintenance.
Worth noting

Cost savings are not automatic. Without a clear cloud cost optimization strategy, organisations can end up spending more in the cloud than they did on-premises. Monitoring usage, right-sizing resources, and using reserved pricing are all essential disciplines from day one.

4The 6 Cloud Migration Strategies (The 6 Rs)

Not every application or workload is migrated the same way. Gartner and AWS both popularised the “6 Rs” framework, which describes six distinct approaches to cloud migration. Choosing the right strategy for each workload is one of the most important decisions in any migration programme.

🔁
Rehost (Lift and Shift)
Move applications to the cloud without making any changes. The quickest and least disruptive approach. Lower cost savings upfront, but gets workloads into the cloud fast. Common first step in large migrations.
🔧
Replatform (Lift, Tinker, and Shift)
Move the application and make minor optimisations to take advantage of cloud capabilities — such as switching to a managed database service — without rewriting the core architecture.
🛒
Repurchase (Drop and Shop)
Replace an existing on-premises application with a cloud-native SaaS alternative. For example, moving from a self-hosted CRM to Salesforce, or from an on-premises email server to Microsoft 365.
🏗️
Refactor (Re-architect)
Redesign and rebuild the application to be cloud-native — typically as microservices or serverless functions. The most expensive and time-consuming option, but delivers the greatest long-term efficiency gains.
🗑️
Retire
Decommission applications that are no longer needed. A migration audit often reveals that a significant portion of existing systems — sometimes 10–20% — are redundant and can simply be switched off.
📌
Retain (Revisit)
Keep certain applications on-premises, at least for now. Some workloads may have compliance requirements, dependencies, or technical constraints that make migration impractical in the short term.

Most enterprise cloud migrations use a combination of these strategies. A single organisation might rehost some systems, repurchase others, and refactor the applications that are most critical to its competitive advantage.

5Step-by-Step Cloud Migration Process

A successful cloud migration follows a structured process. Skipping steps — particularly discovery and planning — is one of the most common causes of cost overruns and delays. Organisations that engage cloud migration services from a specialist partner often find that professional guidance at the planning stage pays for itself many times over.

Assess your current infrastructure

Conduct a thorough inventory of every application, database, server, and workload. Document dependencies between systems, current performance benchmarks, and compliance requirements. Identify which workloads are good candidates for migration and which should be retained or retired. This discovery phase is the foundation of everything that follows.

Choose your cloud provider

Evaluate platforms based on your specific requirements — pricing model, geographic availability, compliance certifications, existing tool integrations, and support quality. AWS cloud services, Azure cloud solutions, and Google Cloud platform services each have distinct strengths covered in detail in Section 8. Some organisations engage cloud consulting services at this stage to ensure a well-informed decision.

Define your migration strategy

Apply the 6 Rs framework to each workload identified in your assessment. Decide which applications will be rehosted, replatformed, repurchased, or refactored. Sequence migrations to start with lower-risk, lower-complexity systems. Establish governance policies, security baselines, and cost management practices before migrating anything.

Migrate applications and data

Execute the migration in planned phases, starting with non-critical workloads to build confidence and refine processes. Use migration tooling provided by your cloud platform — most providers offer automated discovery and migration tools. For data-intensive workloads, plan data transfer carefully to minimise downtime and avoid unexpected egress costs.

Test and validate migrated systems

After each workload is migrated, run thorough functional, performance, and security testing before decommissioning the original environment. Validate that data integrity has been preserved, integrations are working correctly, and performance in the cloud meets or exceeds on-premises benchmarks. Do not retire legacy systems until testing is complete and signed off.

Optimise cloud performance and costs

Post-migration optimisation is ongoing, not a one-time task. Review resource utilisation regularly, eliminate idle or oversized instances, and implement cloud cost optimization practices such as reserved pricing and auto-scaling policies. Many organisations find that their cloud environment requires significant tuning in the first three to six months after migration to reach target cost and performance levels.

6Common Challenges in Cloud Migration

Cloud migration is a well-understood process, but it is rarely straightforward. Being aware of the most common challenges before you start allows you to plan mitigations in advance.

Security and compliance risks

Moving data and applications to a new environment introduces security risks if not handled carefully. Misconfigured access controls, insecure data transfers, and gaps in identity management are among the most common issues. Implementing robust cloud security solutions — including encryption in transit and at rest, multi-factor authentication, and least-privilege access policies — is essential from the outset. Regulated industries must also confirm that their chosen provider and configuration meet all applicable compliance requirements.

Application downtime during migration

Some migration approaches require applications to be taken offline temporarily. For business-critical systems, even brief downtime can have significant financial consequences. Careful sequencing, phased migration approaches, and parallel-running strategies — where both old and new environments operate simultaneously during the transition — can minimise disruption. Many businesses also find that using managed cloud services during migration reduces the operational burden on internal teams.

Data transfer complexity and cost

Transferring large volumes of data to the cloud takes time and can incur substantial transfer costs depending on the volume and method used. For organisations with petabytes of data, physical data transfer options (such as AWS Snowball or Azure Data Box) are often more practical than transferring over the internet. Data integrity must be verified after every transfer.

Hidden and unexpected costs

The pay-as-you-go cloud model can produce surprises if spending is not monitored closely. Data egress fees, licensing changes when moving commercial software, and the cost of running parallel environments during migration are common budget overruns. Building a detailed cost model before migration, and revisiting it regularly during the programme, is essential.

Skills and knowledge gaps

Cloud platforms have their own tools, architectures, and operational practices that differ significantly from on-premises environments. Internal teams may require training, and some organisations choose to supplement their own capabilities with specialist partners who provide cloud consulting services throughout the migration journey.

Common mistake

Treating migration as a purely technical project and underinvesting in change management. The people and process dimensions of cloud adoption — training, new workflows, governance models — are just as important as the technical execution. Migrations that neglect this dimension typically see lower adoption rates and weaker post-migration outcomes.

7Cloud Migration vs. Traditional On-Premises Infrastructure

Understanding the practical differences between cloud and traditional infrastructure helps businesses make a clearer case for migration — and identify the areas where they will need to adapt their operations.

Factor Traditional On-Premises Cloud Infrastructure
Upfront cost High capital expenditure on hardware and facilities Minimal upfront cost; pay-as-you-go model
Scalability Manual, slow, and limited by physical hardware On-demand, automatic, and near-instant
Maintenance Managed entirely by internal IT team Shared responsibility; provider handles infrastructure
Security Full control; fully dependent on internal expertise Provider handles physical and infrastructure security; organisation configures logical security
Disaster recovery Expensive and complex to implement Built-in redundancy and automated backups available
Deployment speed Weeks to months for new infrastructure Minutes to hours for new resources
Global reach Requires physical presence in each location Deploy to any region globally in minutes
Innovation access Limited by in-house capability and budget Immediate access to AI, analytics, and emerging services

For the majority of organisations, the cloud model is demonstrably more efficient for most workloads. There are edge cases — particularly in highly regulated industries or for workloads with very specific latency requirements — where on-premises or hybrid deployments remain preferable. The decision should always be based on a workload-by-workload assessment rather than a blanket policy.

8Best Cloud Platforms for Migration

Three providers dominate the enterprise cloud market. Each has genuine strengths, and the right choice depends on your existing technology stack, team expertise, compliance requirements, and long-term architecture goals. Many larger organisations adopt a multi-cloud architecture, distributing workloads across two or more providers to avoid vendor dependency and optimise for performance and cost.

Amazon Web Services (AWS)
AWS cloud services represent the most mature and feature-rich platform available. AWS offers the widest range of migration tooling, including AWS Migration Hub, Application Migration Service, and Database Migration Service. Best suited for organisations that want maximum flexibility and access to the broadest ecosystem of cloud services. Ideal for complex enterprise cloud infrastructure deployments.
Microsoft Azure
Azure cloud solutions are the natural choice for organisations already running Microsoft technologies — Windows Server, Active Directory, SQL Server, and Microsoft 365. Azure Migrate provides an integrated toolset for discovery, assessment, and migration. Azure also leads the market in hybrid cloud capabilities, making it well-suited for businesses that need to keep some workloads on-premises.
Google Cloud Platform
Google Cloud platform services excel in data analytics, machine learning, and containerised workloads. Google’s Migrate for Compute Engine and Database Migration Service support a wide range of source environments. Competitive pricing and strong open-source credentials make it particularly attractive for engineering-led organisations and data-intensive businesses.

Regardless of which platform you choose, most organisations benefit from working with a qualified partner who holds certifications from that provider. Specialist cloud migration services partners bring experience across hundreds of migration programmes and can significantly reduce the risk of cost overruns and delays.

9Best Practices for Successful Cloud Migration

The difference between a smooth migration and a difficult one often comes down to preparation and discipline. The following practices are consistently associated with positive outcomes across enterprise cloud migration programmes.

  • Start with a thorough discovery: Understand every dependency, integration, and compliance requirement before moving anything. Incomplete discovery is the most common root cause of migration problems.
  • Define success criteria upfront: Establish clear, measurable goals for cost, performance, and reliability before the migration begins. Without defined targets, it is difficult to know when the migration has succeeded.
  • Migrate in phases, not all at once: A phased approach allows teams to build experience, refine processes, and identify issues before they affect critical systems.
  • Treat security as a design requirement, not an afterthought: Establish identity and access policies, encryption standards, and network security controls before migrating the first workload.
  • Implement cloud cost optimization from day one: Set up billing alerts, usage dashboards, and resource tagging immediately. Do not wait until bills arrive to start managing spend.
  • Train your team before and during the migration: Internal teams need to understand the new environment. Invest in cloud certification programmes and hands-on training well ahead of the migration.
  • Do not decommission legacy systems too quickly: Keep on-premises environments running until migrated systems have been thoroughly tested and validated in production.
  • Document everything: Maintain detailed records of architecture decisions, configuration changes, and test results. Good documentation is essential for ongoing operations and future migrations.
  • Plan for ongoing optimisation: Migration is not the end of the journey. Budget for a post-migration optimisation phase to tune performance, refine architecture, and extract further cost savings.
  • Consider engaging managed cloud services: For organisations without deep cloud expertise in-house, managed service providers can handle day-to-day operations while internal teams develop their capabilities.

10The Future of Cloud Migration for Businesses

Cloud migration is not a destination — it is an ongoing process. As cloud technology evolves and business requirements change, organisations will continue to adapt their cloud environments. Several trends are shaping how cloud migration looks over the next few years.

AI-assisted migration tooling

Cloud providers are embedding AI into their migration tools to automate dependency mapping, recommend optimal migration strategies, and identify risks automatically. What previously required weeks of manual assessment is becoming increasingly automated, making migrations faster and less resource-intensive for businesses of all sizes.

Multi-cloud as the default architecture

The majority of large enterprises already use more than one cloud provider. Multi-cloud architecture is becoming the standard approach rather than the exception, driven by the need to avoid vendor lock-in, optimise costs across providers, and place workloads in the best environment for their specific requirements. This trend increases the complexity of cloud management but also creates more flexibility.

Edge computing extending the cloud

For workloads that cannot tolerate the latency of a centralised cloud data centre — such as real-time manufacturing systems, autonomous vehicles, and retail point-of-sale — edge computing brings processing closer to where data is generated. Cloud providers are building integrated edge offerings that extend their platforms to physical locations, blurring the line between cloud and on-premises.

Cloud-native becoming the standard for new development

New applications are increasingly being built cloud-native from the start — designed for scalability, resilience, and portability across cloud environments. As this becomes standard practice, the migration challenge shifts from “how do we move legacy systems?” to “how do we modernise them into cloud-native architectures?”

“The question for most organisations is no longer whether to migrate to the cloud — it is how to migrate well, and how to continue optimising once you are there.”

For businesses that have not yet begun their cloud migration, the landscape has never been more accessible. Provider tooling is more mature, migration methodologies are well-established, and the ecosystem of specialist partners offering cloud consulting services and managed cloud services is deep. The conditions for a successful migration are better today than they have ever been.

11Frequently Asked Questions About Cloud Migration

What is cloud migration in simple terms?

Cloud migration is the process of moving a business’s data, applications, and IT systems from on-premises hardware to a cloud-based platform — such as AWS, Azure, or Google Cloud. The goal is to replace physical infrastructure with scalable, internet-accessible cloud services that the provider manages and maintains. It can involve moving a single application or an entire IT environment.

How long does cloud migration take?

The duration of a cloud migration depends on the scope and complexity of the systems being moved. A small business migrating a handful of applications might complete the process in a few weeks. A large enterprise undertaking a full migration of its IT estate typically works through a multi-phase programme lasting anywhere from six months to two or more years. Proper upfront planning is the single biggest factor in keeping timelines on track.

What are the risks of cloud migration?

The most common risks include data loss or corruption during transfer, application downtime, unexpected cost increases, security misconfigurations, and integration failures between migrated systems. Most of these risks can be significantly reduced through thorough pre-migration assessment, phased execution, and rigorous testing. Engaging experienced cloud migration services can further reduce exposure to avoidable errors.

Is cloud migration expensive?

The cost of cloud migration varies widely. Smaller migrations can be completed for relatively modest sums, while large enterprise cloud migration programmes can run into the millions. Upfront migration costs need to be weighed against ongoing savings in infrastructure, licensing, and IT operational costs, which typically deliver a positive return on investment within one to three years. Implementing cloud cost optimization practices from the start helps keep both migration and ongoing costs under control.

Which industries benefit most from cloud migration?

While every industry benefits from cloud adoption, sectors that tend to see the most significant gains include retail and e-commerce (real-time inventory and scalable peak capacity), financial services (fraud detection and regulatory reporting), healthcare (secure data sharing and telehealth), and media and entertainment (on-demand content distribution). Manufacturing and logistics are also seeing substantial benefits from cloud-connected operations and real-time supply chain visibility.

What is the best cloud platform for migration?

There is no single best platform — the right choice depends on your existing technology stack, team expertise, and specific workload requirements. Organisations running Microsoft technology tend to find Azure cloud solutions the most natural fit. Businesses that prioritise maximum service breadth and mature tooling often favour AWS cloud services. Data-intensive and engineering-led organisations frequently find Google Cloud platform services the most compelling. Many large organisations ultimately adopt a multi-cloud architecture that combines two or more providers.

Plan your cloud migration with confidence

Understanding cloud migration is the foundation of a successful transition. The next step is assessing your current infrastructure, defining your objectives, and identifying which migration strategy fits each workload in your environment.

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