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On-Premise to Cloud Migration Strategy: Best Practices

April 3, 2025

Editor’s note: This article provides a comprehensive guide to enterprise cloud migration strategies. We’ll explore the role of cloud migration in digital transformation, discuss various migration approaches, and outline a robust planning process, as well as practical tips for a successful transition.

 The move to the cloud has become the foundation for agility and cost-efficiency. With over 52% of enterprises migrating most of their IT environments to the cloud and 63% planning to do so within 18 months, the shift to cloud-based solutions is essential.

For most businesses, adopting cloud computing is no longer a question of “if” but “when.” It’s the key to unlocking agility, scalability, and cost efficiency in a world that demands rapid adaptation and innovation.

However, migrating to the cloud can be complex. This guide provides a clear roadmap to help you navigate the journey, ensuring a smooth transition and optimal results.

H2 What is Cloud Migration?

Cloud migration is the process of moving your digital assets—data, applications, and IT infrastructure—from in-house data centers to a cloud provider’s infrastructure. This can be a public cloud such as AWS, Azure, or Google Cloud, a private cloud, or a hybrid model. Enterprises can choose to move everything at once or migrate resources to the cloud gradually.

This process isn’t a simple ‘copy and paste’ operation. It often requires significant adjustments to your systems and applications to fully leverage cloud capabilities. This could involve refactoring applications to work properly in a cloud environment, rehosting them, or even replacing them entirely with cloud-native solutions.

H3 The Impact of Enterprise Cloud Migration

As mentioned earlier, migrating to the cloud isn’t just about moving your IT infrastructure. It is a fundamental shift that affects all business operations. Companies can achieve new levels of agility, scalability, and cost-effectiveness that were not possible with traditional infrastructure. What does that mean in practice?

First, cloud computing gives businesses unparalleled agility. Imagine being able to launch new applications, services, or even entire lines of business with just a few clicks. It enables rapid development, testing, and deployment, dramatically reducing time to market.

Second, the cloud infrastructure can easily adapt to changing demands. Whether you are experiencing seasonal peaks or rapid growth, you can scale up or down as needed, ensuring optimal performance while avoiding the costs of overprovisioning.

Finally, on-premise to cloud migration can result in significant cost savings. By eliminating the need to invest in and maintain expensive infrastructure, organizations pay only for the resources they use. In addition, cloud providers handle maintenance, updates, and security, allowing internal IT staff to focus on more strategic initiatives.

Many companies already benefit from using cloud technologies. According to the survey, 94% of them use the cloud to some extent, with 83% working in a multi-cloud environment.

How can it benefit your business? Let’s take a closer look.

H2 Benefits of Cloud Migration

The benefits of cloud migration go far beyond the operational improvements we’ve already discussed. It brings a range of strategic advantages that can transform a business and position it for long-term success. Let’s explore some of these in detail.

H3 Better Flexibility and Scalability

Cloud environments are inherently flexible. Whether you’re scaling up to meet peak demand or scaling down during quieter periods, cloud computing gives you the agility to respond without being tied to the rigid limitations of traditional IT infrastructure. This means faster response times, more efficient operations, and a greater ability to seize new opportunities as they arise.

H3 Cost Savings and Financial Efficiency

By moving to a pay-as-you-go model, organizations can significantly reduce upfront capital costs related to physical hardware. Operational costs such as maintenance and power consumption are also minimized, freeing resources for strategic investments.

H3 Improved Disaster Recovery and Security

To ensure business continuity in case of a disruption, cloud platforms offer solid disaster recovery solutions. Advanced security features, including encryption and multi-factor authentication, protect sensitive data from threats and provide peace of mind.

H3 Enhanced Collaboration and Remote Access

With centralized data storage and cloud-based applications, teams can work together seamlessly from anywhere in the world. This boosts productivity and supports the remote workforce that has become a cornerstone of modern business practices.

H3 Competitive Advantage in the Digital Marketplace

Adopting cloud technology allows businesses to innovate faster and deliver superior customer experiences. By leveraging advanced analytics, machine learning, and other cloud-native tools, businesses can stay ahead of the competition and adapt to evolving market demands.

H2 Types of Cloud Migration

There’s no one-size-fits-all approach to cloud migration. The best strategy depends on your needs, applications, and business goals. Each strategy offers different cloud migration benefits and requires different levels of effort and investment. Let’s look at the most common types of cloud migration.

H3 Rehosting (‘Lift and Shift’)

This is often the fastest and easiest route. You ‘lift’ the application from your on-premises infrastructure and ‘shift’ it to a cloud-based server, virtual machine (VM), or container as is, with minimal changes. This is a good option for applications that don’t require significant changes and where speed of migration is paramount. While fast, this approach may not t fully leverage cloud-native functionality.

H3 Refactoring (Platform Migration)

This approach involves modifying your applications to suit the cloud environment without changing the architecture. For example, you might migrate from a self-managed database to a cloud-based service like Amazon RDS or Azure SQL Database or use a Platform as a Service (PaaS) offering instead of managing virtual machines directly. This approach allows you to benefit from managed services and improve scalability and efficiency without a complete rebuild.

H3 Rearchitecting (Application Modernization)

This is a more significant transformation. You rearchitect your applications to take advantage of cloud-native features such as containers, microservices, and serverless computing. This often leads to significant improvements in scalability, resiliency, and performance but requires greater development effort and expertise.

H3 Rebuilding (Building on Cloud-Native Capabilities)

This is the most extensive and transformative approach. Instead of migrating applications, you rebuild them using cloud-native technologies and principles. While this cloud migration strategy requires the highest initial investment, it offers flexibility and optimization potential. Organizations often choose this approach when applications are outdated or when business requirements can’t be met through other strategies.

H3 Replacing (Switching to a SaaS Solution)

In some cases, the most efficient path to the cloud isn’t migrating your application at all. Instead, you might replace it with a Software-as-a-Service (SaaS) solution that provides the functionality you need. Think of this as if you were moving from an in-house email server to a cloud-based service like Gmail or Microsoft 365. This approach shifts the management and maintenance burden to the SaaS provider.

In some cases, you might consider retirement—shutting down a redundant legacy application without moving it to the cloud or retention—keeping certain applications on-premises because they work great in the current environment.

H2 Cloud Migration Strategy and Planning

Successful cloud migration requires careful planning and a well-defined strategy. Moving to the cloud without a clear roadmap can result in costly mistakes and project failures. Here are some steps to ensure success.

H3 Developing a Strategy

Start by identifying the key drivers for migration, such as cost reduction, improved scalability, or enhanced security. Clearly outline desired outcomes and prioritize applications and workloads based on their business value. Collaborate with stakeholders to ensure cross-departmental alignment, minimize resistance, and maximize the strategic impact of the migration.

H3 Cloud Migration Assessment

Evaluate your current IT environment, including hardware, software, application dependencies, and data flows. Identify potential challenges, such as legacy systems or incompatible workloads, and determine the feasibility of migrating each component to the cloud. This assessment will help you create a migration roadmap that ensures minimal disruption to operations and optimal resource allocation.

H3 Selecting Cloud Migration Tools

Choosing the right tools can streamline the migration process and reduce risk. Popular application migration tools include AWS Migration Hub, Azure Migrate, and Google Cloud Migrate.

For data migration, tools such as AWS Snowball and Azure Data Box enable the secure and efficient transfer of large data sets. Database migration tools, such as AWS Database Migration Service and Azure Database Migration Service, simplify the transition of on-premises databases to cloud environments. Choosing tools that match your migration goals and technical requirements will significantly increase the success of your cloud transition.

H2 Cloud Migration Process and Steps

A well-defined process is essential for a smooth and successful transition. This process typically includes five key phases.

Phase 1: Assessment and Planning

Define clear goals, requirements, and key performance indicators (KPIs) for your migration. Assess your existing infrastructure and applications to identify dependencies, challenges, and requirements.

Phase 2: Design and Strategy Selection

Based on the assessment, select the best migration approach (rehosting, refactoring, rearchitecting, rebuilding, or replacing). Then, design your target cloud environment’s architecture to meet your specific needs.

Phase 3: Testing and Pilot Migration

Before migrating your entire infrastructure, conduct a pilot migration with a non-critical application. This allows you to test performance, security, and reliability in a controlled environment, and identify potential issues before they impact your production systems.

Phase 4: Data and Application Migration

Begin migrating your data and applications to the cloud. To minimize downtime and disruption to business operations, execute this process in carefully planned phases.

Phase 5: Optimization and Monitoring

After migration, continuously optimize and monitor your cloud environment. This includes fine-tuning performance, tracking resource use, addressing performance bottlenecks, and ensuring optimal performance, security, and cost-effectiveness.

H3 Cloud Migration Checklist

To help you successfully implement a strategy, we created a checklist table outlining all the required steps. Use this table to ensure nothing is overlooked.

PhaseStepDescription
1. Assessment and PlanningDefine migration goalsClearly outline what you want to achieve with the migration (e.g., cost reduction, scalability).
 Conduct a cost-benefit analysisEvaluate the financial implications of the migration, including costs and potential ROI.
 Set KPIsDetermine key performance indicators to measure the success of the migration (e.g., cost savings, performance improvements, reduced downtime).
 Assess current infrastructureAssess your existing IT setup, including hardware, software, and network.
 Identify application dependenciesMap out how applications interact with each other and with data sources.
 Determine compliance and security requirementsUnderstand regulatory and security needs that must be met in the cloud.
 Identify stakeholders & secure buy-inDetermine key stakeholders and ensure their support for the migration project.
2. Design and Strategy SelectionChoose a migration strategyDecide on the best strategy for each application (rehost, refactor, rearchitect, rebuild, replace).
 Design cloud architecturePlan the cloud environment, including network, compute, and storage layout.
 Select cloud providerBased on your needs, choose between AWS, Azure, Google Cloud, or others.
 Plan for security and complianceDesign security measures and compliance controls for the cloud environment.
 Establish a backup & recovery planCreate a disaster recovery plan and backup strategy for cloud-based workloads.
 Identify cloud data migration toolsSelect tools to support the migration process (e.g., migration automation, data transfer, testing).
 Conduct skills assessment & trainingIdentify any skill gaps within the team and provide necessary training on cloud technologies.
3. Testing and Pilot MigrationSet up test environmentCreate a controlled environment to mirror part of your production setup.
 Conduct functional testingVerify that applications function as expected in the cloud environment.
 Conduct pilot migrationMigrate a subset of applications or data to test the process.
 Test performance, security, and reliabilityValidate that the migrated components work as expected.
 Analyze pilot results & adjust planReview the results of the pilot migration and, based on them, make any necessary adjustments to the full cloud migration roadmap.
4. Data and Application MigrationSchedule migration phasesPlan the sequence and timing of migrations to minimize business impact.
 Set up production cloud environmentConfigure the production cloud environment based on the design.
 Execute data migrationTransfer data securely and efficiently to the cloud, ensuring integrity.
 Migrate applicationsMove applications to the cloud, potentially refactoring as needed.
 Update DNS & networking configurationsUpdate DNS records and network configurations to route traffic to the cloud environment.
 Perform post-migration checksVerify that all components are functioning correctly in the new environment.
5. Optimization and MonitoringImplement monitoring solutionsSet up tools to continuously track performance, costs, and security.
 Monitor performance & availabilitySet up monitoring tools and processes to track application performance, availability, and resource utilization.
 Optimize resource usageAdjust resource allocation based on actual usage to optimize costs.
 Fine-tune applicationsMake necessary tweaks to applications for better performance in the cloud.
 Train end-usersProvide training to end-users on how to use the migrated applications in the cloud.
 Continuous security assessmentRegularly review and update security measures to protect against new threats.
 Cost managementMonitor cloud expenses and implement cost-saving strategies.

H2 Trust Your Cloud Migration to a Reliable Technology Partner

Unlock the cloud’s potential with Coherent Solutions—your trusted partner for a seamless migration.

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H2 Tools and Technologies for Cloud Migration

A successful cloud migration strategy depends heavily on the right tools and technologies. Here are some leading tools and technologies that can streamline the process:

AWS Migration Hub

AWS Migration Hub provides a centralized platform for tracking the progress of application migrations across multiple AWS services. It provides visibility into the migration process, enabling organizations to effectively manage and monitor their migration efforts. Key features include:

  • Integration with AWS services: Seamlessly integrates with other AWS migration tools such as AWS Application Migration Service and AWS Database Migration Service.
  • Centralized dashboard: Provides a comprehensive view of all migration activities, making it easier to manage resources and timelines.

 Azure Migrate

Azure Migrate is Microsoft’s suite of tools designed to simplify the migration of servers, databases, applications, and data to the Azure cloud. It provides a range of assessment, migration, and optimization services. Key features include:

  • Assessment tools: Help organizations evaluate their on-premises environment and plan migrations based on compatibility and performance metrics.
  • Migration Options: Supports a variety of migration strategies, including rehosting and refactoring.

Google Cloud Migration

Google Cloud Migration offers a set of tools to help businesses move workloads, including virtual machines, applications, and databases, to the Google Cloud. Key features include:

  • Automated migration: Provides automated processes for moving applications and data with minimal downtime.
  • Performance monitoring: Includes tools to monitor application performance before and after migration to ensure optimal operation in the new environment.

Additional Tools

Besides these cornerstone tools, several other notable ones support cloud migration:

  • IBM Cloud Migration Services: Provides expertise and tools for migrating applications and data to the IBM Cloud.
  • Carbonite Migrate: Enables efficient migration of physical, virtual and cloud workloads with minimal risk and downtime.
  • CloudEndure Migration: Provides an automated lift-and-shift solution that simplifies the migration process while reducing costs.

H3 Application-Specific Migration Tools

While the above platforms offer broad capabilities, you may need cloud application migration tools for some specific tasks. Let’s explore a few options:

  • Legacy Application Migration: Tools like CloudEndure Migration and AppDynamics simplify legacy application migration while optimizing systems for cloud compatibility. They identify dependencies, analyze code, and ensure smooth integration with the target environment.
  • Database Migration: AWS DMS, Azure Database Migration Service, and Google Cloud Database Migration Service enable seamless data transfer with minimal downtime. They handle schema conversions, data validation, and replication to ensure accurate database migration.
  • Virtual Machine Migration: VMware HCX, Azure Migrate, and Google Migrate for Compute Engine support smooth VM transfers with features like live migration, workload balancing, and automated configuration to ensure performance and availability.

H3 Hiring a Cloud Migration Consultant

While some organizations have an in-house team to manage cloud migrations, others benefit significantly from hiring a cloud migration consultant. Expert assistance is particularly valuable for migrations involving complex applications, extensive data integration, or strict regulatory compliance requirements.

Experienced consultants can help minimize risk and ensure a smooth transition, bringing their expertise and best practices to the project. They can also provide guidance on strategy, tool selection, and implementation, helping you navigate the complexities of cloud environments.

Additionally, consultants can help optimize your cloud environment for cost efficiency and performance, maximizing your return on investment. For complex migration projects, a cloud migration consultant can be a valuable asset in ensuring a successful and efficient transition to the cloud.

H2 Challenges in Cloud Migration

Moving to the cloud isn’t always a straightforward process. Several potential cloud migration challenges can arise, and it’s important to be aware of them.

H3 Risk Management in Cloud Migration

A successful cloud migration requires effective risk management. Let’s find out how to protect your data and keep your business up and running.

Data Transfer and Security Risks

One of the most critical concerns is ensuring data security and integrity. Transferring large amounts of sensitive data to the cloud can expose it to unauthorized access, loss, or corruption if not managed properly.

To avoid these risks, organizations should implement strong encryption for data both in transit and at rest. Using secure protocols such as HTTPS and leveraging VPNs can help protect data from external threats. Also, testing and piloting the migration on a small set of data can identify potential issues before scaling.

Compatibility and Integration Challenges

Migrating applications and systems to the cloud can lead to compatibility issues. Legacy systems may not fit well with cloud-native technologies, resulting in significant challenges or the need for costly re-engineering.

To address these challenges, start by thoroughly assessing your current IT infrastructure to identify potential compatibility gaps. Enterprises may also consider hybrid cloud solutions as an interim step while transitioning to the cloud. Choosing cloud platforms that are compatible with existing tools and technologies, or using cloud-native services to refactor applications, can further streamline integration.

Vendor Lock-In

Vendor lock-in occurs when an organization becomes overly dependent on a particular cloud provider, limiting flexibility and potentially increasing long-term costs.

To reduce this risk, organizations can adopt a multi-cloud or hybrid cloud strategy to enhance flexibility and redundancy. In addition, adopting open standards and using containers or Kubernetes can help make workloads more portable across different cloud environments.

H3 Legacy System Compatibility and Migration

Legacy to cloud migration often comes with unique challenges compared to modern ones. Typically built with outdated technologies and tightly coupled architectures, these legacy systems require a thoughtful strategy to succeed.

They may rely on operating systems, middleware, or hardware that is not inherently compatible with cloud environments. Limited in-house expertise can further complicate understanding dependencies and determining potential migration paths. In addition, a lack of comprehensive documentation can make it difficult to assess application functionality and identify potential cloud migration risks.

To address these challenges, start with a thorough assessment and analysis of the legacy system. This includes code analysis, dependency mapping, and functional testing. Also, migrate your legacy project in phases, starting with less critical components to minimize risk.

Consider options beyond a simple ‘lift and shift,’ such as refactoring or rearchitecting components. In some cases, rebuilding or replacing the legacy application with a cloud-native solution may be the most effective long-term strategy. Finally, bringing in experts with legacy migration experience can provide invaluable guidance and accelerate the process.

H2 Cloud Migration Best Practices

Implementing best practices ensures a smooth transition and maximizes the benefits of moving to the cloud. Here are five key strategies to guide your journey.

Building a Strong Migration Plan

A detailed cloud migration plan is the foundation for success. Start by clearly defining your migration goals, identifying key stakeholders, and creating a timeline. Prioritize workloads based on business criticality and create a roadmap that outlines each step of the migration process. A solid plan minimizes risk and ensures alignment with business goals.

Data Protection and Security Measures

Data security should be a top priority during migration. Implement comprehensive backup solutions to safeguard against data loss and ensure business continuity. Use encryption to protect sensitive information in transit and at rest. In addition, implement strong access controls and monitor data transfers to mitigate security risks.

Ensuring Compliance and Regulatory Standards

Meeting compliance requirements is critical, especially for organizations in regulated industries. Work with your cloud provider to understand their compliance capabilities and ensure alignment with regulations such as GDPR, HIPAA, or PCI DSS. Document all compliance measures to demonstrate accountability and maintain stakeholder trust.

Gradual Migration and Testing

Avoid migrating all workloads at once. Instead, adopt a phased approach, starting with non-critical applications. Test all cloud migration steps to identify and address potential problems. Pilot migrations provide valuable insights, helping you refine your strategy and minimize disruptions during full deployment.

Post-Migration Monitoring and Optimization

The migration doesn’t end with deployment. Ongoing monitoring is critical to identify performance bottlenecks, optimize resource utilization, and maintain security. Use analytics tools to gain insight into workload performance and user behavior. Review your cloud environment regularly to identify opportunities for cost optimization and efficiency improvements.

H2 Cloud Migration Success Stories

Learning from successful cloud migration stories can provide valuable insights into effective strategies and common pitfalls to avoid. Let’s analyze some real-world case studies across different industries.

H3 Carrefour

Carrefour, a global retail giant, moved to Google Cloud to improve its customer experience and accelerate innovation. They focused on transforming their e-commerce operations, supply chain, and store operations. As part of this initiative, they also wanted to move to 100% renewable energy and set energy-saving goals for their applications.

Impact on their business:

  • Carrefour emphasized aligning cloud initiatives with customer needs. They powered a new recommendation engine for their e-commerce services which allowed them to create personalized recommendations based on individual customer preferences.
  • By using Google Cloud VMware Engine, Carrefour was able to migrate applications without significant disruption to operations. This demonstrates the value of choosing migration tools that enable a smooth transition.
  • By migrating to the cloud, Carrefour achieved a 40% reduction in operating costs and a 45% decrease in energy consumption.  This underscores the financial and environmental benefits of strategic cloud adoption.

H3 Carrier

Carrier, a leader in heating and cooling solutions, migrated their enterprise workloads to AWS to enhance innovation and operational efficiency.

Impact on their business:

  • Carrier collaborated with AWS Professional Services for expert guidance to streamline the migration process and optimize cloud migration costs. As a result, the company successfully removed 1,300 servers supporting 350 applications from its data centers and retired 370 servers, saving $2.4 million in annual costs.
  • The company’s strategy of migrating in phases allowed for testing and refinement at each step, reducing risk and enabling continuous improvement.

H3 Capital One

Capital One, a leading financial institution, migrated its entire IT infrastructure to AWS, becoming the first major U.S. bank to go all-in on the cloud.

Impact on their business:

  • By moving to AWS, Capital One was able to better manage costs with pay-as-you-go models and optimize resource use with AWS tools.
  • The transition allowed the company to close eight on-premises data centers, migrate them entirely to the cloud, and reach 11,000 technology team members during the eight-year migration journey.
  • They also could achieve a 70 percent improvement in disaster recovery time in testing, reduce transaction errors and critical incident resolution time by 50 percent, and decrease the average build time for development environments from three months to minutes.

H2 Costs and Budgeting for Cloud Migration

The cost of cloud migration is not a fixed number; it depends on several factors. Understanding these factors is critical when planning a cloud migration.

 The cost of cloud migration depends on various factors. Licensing fees for migration tools, resources used during the migration—such as cloud computing and storage—and fees for cloud migration consultants all contribute to the overall cost.

The complexity of your environment, the migration strategy you select, and the level of automation you use also affect the total expense. A thorough plan and detailed assessment are essential to estimate these upfront costs accurately.

At the same time, it’s important to consider the long-term financial benefits of cloud migration. The cloud eliminates the need for large upfront investments in hardware like servers, storage, and networking equipment. It also reduces hardware maintenance costs, lowers energy consumption, and allows you to scale resources on demand, paying only for what you use.

In addition, increased agility and faster time to market can generate new revenue streams and improve your competitive position. A comprehensive cost analysis should consider both the initial migration costs and the potential for long-term financial gains.

H2 Coherent Solutions: A Reliable Cloud Migration Partner

Ready to transform your business? At Coherent Solutions, we provide comprehensive cloud migration services in partnership with AWS, Microsoft Azure, and Google Cloud Platform to ensure a seamless transition to the cloud.

With 30 years of expertise in cloud and DevOps practices and a strong ISO 27001-based information security management system, we prioritize reliability and security at every step. Let us guide your digital transformation and help you optimize your IT infrastructure for the future. Contact us today to start your cloud journey!