👋If you are a new reader, my name is Danar Mustafa. I write about product management focusing on AI, tech, business and agile management. You can visit my website here or visit my Linkedin here. I am based in Sweden and founder of AImognad.se – leading AI maturity Model Matrix. Get your free assessment here.

Overview of Cloud Migration

What is a Cloud Migration?

Cloud migration refers to the process of moving critical services, data, applications, and information from on-premise or colocated hardware to cloud service providers such as Amazon Web Services, Google Cloud Platform, Microsoft Azure, and others. It involves transitioning IT infrastructure management remotely without the security risks, maintenance costs, and inconveniences associated with on-premise hardware.

How Difficult is a Cloud Migration?

The complexity of cloud migration varies depending on the resources involved in each project. Businesses typically migrate platforms for various services like business applications, web/mobile applications, IoT devices, CRM systems, productivity software, databases, network tools, and more. The process can involve transferring data from private servers or local data centers to public cloud architectures offered by major providers like AWS, Microsoft, IBM, Google, and Oracle.

Benefits of Cloud Migration

1. Security: When implemented correctly, the cloud can offer enhanced security compared to traditional network systems. Cloud providers follow a “shared responsibility” model where customers are responsible for securing their part of the cloud environment. Major cloud providers have robust security measures in place such as privacy controls, security analytics, regular updates, and compliance certifications (e.g., ISO27001). Storing data centrally in the cloud provides stronger security than traditional data centers.
2. Scalability: Cloud migration enables businesses to scale their IT resources up or down based on changing requirements. This flexibility allows organizations to adapt quickly to evolving customer demands without being tied to fixed infrastructure. Companies can adjust their workloads and resources dynamically in response to business needs without the constraints of physical equipment or long-term contracts.
3. Cost Efficiency: Moving to the cloud can lead to reduced operational costs by eliminating the need for maintaining expensive data centers. Cloud services operate on a pay-as-you-go model, allowing businesses to pay only for the resources they use. This cost-effective approach has been shown to lower IT expenses for both small and large enterprises while improving overall efficiency and productivity.

The 7Rs of Cloud Computing

The 7 Rs of cloud migration are a set of strategies designed to help organizations plan, execute, and optimize their migration projects. The 7 cloud migration strategies are: rehost, relocate, replatform, refactor, repurchase, retire, and retain.

The 7 Cloud Migration Strategies in Detail

1. Rehost (“Lift and Shift”): Involves moving workloads to a cloud instance without changing the core infrastructure.
2. Relocate (“Hypervisor-Level Lift and Shift”): Migrates workloads without impacting ongoing operations.
3. Replatform: Involves making minimal changes to applications for compatibility with the cloud environment.
4. Refactor: Involves redesigning applications to take advantage of cloud-native features.
5. Repurchase: Involves replacing existing software with a cloud-based alternative.
6. Retire: Involves decommissioning or replacing legacy systems that no longer provide value.
7. Retain: Allows organizations to keep certain workloads on-premises if moving them to the cloud is not feasible or beneficial.

TCO (Total Cost of Ownership) and its significance in cloud migration

Total Cost of Ownership (TCO) is the sum of all costs associated with the purchase, operation, and maintenance of a particular asset throughout its lifespan. In the context of cloud computing, TCO refers to the total cost of adopting, operating, and provisioning cloud infrastructure. It encompasses various expenses such as infrastructure costs, support costs, software licensing, data storage, network bandwidth, personnel expenses, and any tools or resources required for cloud adoption and management.

Significance of TCO in Cloud Migration

Calculating the Total Cost of Ownership in cloud migration is crucial for several reasons:

1. Financial Implications: Understanding the TCO helps organizations assess the financial impact of migrating to the cloud compared to maintaining on-premises systems. It allows businesses to make informed decisions based on cost considerations.
2. Cost Optimization: By analyzing TCO before and after migration, companies can identify areas where costs can be optimized. This knowledge enables proactive cost management and maximizes the benefits derived from cloud investments.
3. Strategic Decision-Making: Cloud TCO provides insights that aid in strategic decision-making. It helps in choosing between different cloud platforms, optimizing expenses associated with cloud services, and determining the overall cost-effectiveness of migrating to the cloud.
4. Resource Allocation: Knowing the TCO assists in efficient resource allocation by understanding the full spectrum of costs involved in cloud adoption. This information guides budgeting and resource planning processes effectively.
5. Continuous Improvement: Monitoring and managing TCO post-migration allows organizations to continuously improve their cost structures and operational efficiency in the cloud environment.

Factors Influencing TCO in Cloud Migration:

1. Migration Costs: Moving applications and data to the cloud incurs expenses related to modifying applications for cloud compatibility, data transfer charges, and choosing an appropriate migration method (rehosting, refactoring, revising, rebuilding, or replacing applications).
2. Monthly Cloud Costs: The ongoing operational expenses in the cloud include the monthly charges for utilizing various cloud services based on workloads, consumption models (on-demand, reserved instances), and types of services consumed (commodity vs. specialized services).
3. Consultation and Training Costs: If internal teams lack expertise in cloud migration, additional costs may arise from hiring consultants for training purposes.
4. Intangible Benefits: Apart from direct monetary comparisons, intangible benefits like innovation opportunities and elasticity of demand need to be considered when evaluating TCO in cloud migration.

Calculation Methods for TCO in Cloud Migration:

When calculating the Total Cost of Ownership (TCO) in cloud migration, there are several methods and considerations to take into account. Here are some calculation methods commonly used:

1. Direct Costs Analysis:

• Hardware Costs: This includes the cost of physical servers, networking equipment, storage devices, etc., that would be required for on-premises infrastructure.
• Software Costs: Calculating the expenses related to software licenses, maintenance, and updates.
• Personnel Costs: Determining the costs associated with IT staff required for managing on-premises systems.
• Data Center Expenses: Factoring in costs like power consumption, cooling, space rental, and maintenance of the data center.

2. Indirect Costs Evaluation:

• Downtime Costs: Estimating the financial impact of system downtime on productivity and revenue.
• Security Expenses: Assessing the costs associated with implementing and maintaining security measures for on-premises systems.
• Disaster Recovery Costs: Calculating the expenses related to backup solutions and disaster recovery plans.

3. Cloud Service Costs Comparison:

• Subscription Fees: Analyzing the monthly or annual subscription costs of cloud services based on resource usage.
• Migration Expenses: Considering one-time migration costs involved in moving applications and data to the cloud.
• Operational Costs: Evaluating ongoing operational expenses such as monitoring, support, and additional services provided by the cloud service provider.

4. Intangible Cost Assessment:

• Flexibility and Scalability Benefits: Assessing how cloud migration can offer flexibility in resource allocation and scalability options compared to traditional on-premises setups.
• Risk Management Considerations: Understanding how cloud services can mitigate certain risks compared to self-managed systems.

Cloud Readiness Assessments

Amazon Web Services (AWS) Cloud Adoption Framework (CAF) and Migration Readiness Assessment (MRA):

The AWS CAF provides a comprehensive framework with six perspectives (business, people, governance, platform, security, and operations) to assess an organization’s cloud readiness. The Migration Readiness Assessment within this framework helps organizations understand their current position in the cloud journey, identify strengths and weaknesses, and develop an action plan to address gaps. This assessment aims to ensure a holistic view of the transformation required for a successful move to the cloud.

Cloud Migration Checklist

Total Cost of Ownership for Cloud – Categories

Cost Category	Description
Hardware and Infrastructure	Cost of physical servers, supplies, spare parts
Datacenter	Cost of power, cooling, space requirements
Software	Cost of licenses and software usage
Personnel	Cost of system, network, and database admins
Disaster Recovery	Cost of maintaining disaster recovery system
Maintenance	Cost of servicing, operating, and maintenance
Upgrades	Cost of upgrading or overhauling the system
Security	Total cost of securing the system
Hidden Costs	Downtime costs and implications

Bonus Tip – Assess the Usage Patterns

Before embarking on a cloud migration, it is crucial to analyze and understand the usage patterns of your on-premises applications. These patterns provide valuable insights into how applications are currently utilized, their dependencies, performance requirements, and specific characteristics that may impact the migration process.

Enhanced Decision-Making: Understanding usage patterns helps in making informed decisions regarding which applications are suitable for migration to the cloud. It enables organizations to prioritize workloads based on factors such as performance demands, data sensitivity, compliance requirements, and business criticality.

Efficient Resource Allocation: Usage patterns also aid in efficient resource allocation during the migration process. By grouping applications with similar usage characteristics, organizations can allocate resources effectively, ensuring that each application receives the necessary support and configuration for optimal performance in the cloud environment.

Risk Mitigation: Analyzing usage patterns before migration helps in identifying potential risks and challenges associated with specific applications. This proactive approach allows organizations to address issues such as compatibility issues, performance bottlenecks, or security vulnerabilities before they impact the migration process.

Facilitating Modernization Efforts: Usage patterns play a key role in facilitating modernization efforts during cloud migration. By understanding how applications are currently used and their unique requirements, organizations can tailor modernization strategies to enhance agility, scalability, and resilience post-migration.

Cloud Migration – Glossary – Essential Terms

API	An API (Application Programming Interface) is a software intermediary that allows different applications to communicate with each other. It acts as a bridge, enabling the exchange of data and functionality between various software components or systems.
AWS	Amazon Web Services, cloud computing platform.
Microsoft Azure	Cloud Platform from Microsoft.
Bandwith	In cloud computing, bandwidth refers to the amount of data that can be transferred between a user’s device and the cloud servers within a specific period
Caching	Caching is the process of storing data in a temporary storage area, called a cache, to facilitate faster access to data and improve application and system performance.
Cloud Computing	Cloud computing is the use of remote servers on the internet to store, manage, and process data instead of using a local server or personal computer.
CMS – Content Management System	A Content Management System (CMS) is a software application hosted on cloud servers that allows users to create, edit, collaborate on, publish, and store digital content.
Container	Containers in cloud computing are software packages that contain an application’s code, its libraries, and other dependencies required to run the application in the cloud. This eliminates the need for multiple software versions for different platforms.
Database	Database in cloud computing is a structured collection of data that is stored and managed on a cloud platform instead of traditional on-premises systems. It allows users to access, update, and manage their data through the internet using cloud services.
AWS Database Migration Service	(AWS DMS) is a fully managed service offered by Amazon Web Services that enables you to migrate and replicate databases to and from various sources.
Date Warehouse	Data Warehouse in cloud computing refers to a centralized repository of data stored and managed in the cloud.
Data Lake	A data lake in cloud computing is like a vast digital reservoir where you can store all types of data – structured, semi-structured, and unstructured – in its raw form.
DevOps	DevOps in cloud computing means that teams responsible for developing and maintaining software applications work closely together to ensure a smooth and efficient process from writing code to deploying it on cloud infrastructure.
DHCP	Dynamic Host Configuration Protocol) in cloud computing refers to the network protocol used to automatically assign IP addresses and other network configuration parameters to virtual machines or instances within a cloud environment.
DNS	The domain name system (DNS) is a critical component of the internet infrastructure that translates human-readable domain names into machine-readable IP addresses. It enables users to access websites and online services by entering easy-to-remember domain names instead of complex IP addresses.
Docker	Docker is like a virtual box that you can put your applications in. It helps you to keep your applications separate from the computer they run on. This way, you can move your applications around easily and run them on different computers without any problems.
Edge Computing	Edge computing in the context of cloud computing refers to the practice of processing and analyzing data closer to where it is generated, rather than sending it to a centralized cloud server for computation.
GSP -Google Cloud Platform	A suite of cloud computing services.
Hybrid Cloud	A hybrid cloud setup combines a private space (on-premises data center) with a public space (third-party cloud services) connected together.
Iaas	IaaS works by allowing organizations to rent access to cloud infrastructure resources from a cloud service provider (CSP), including servers, virtual machines, networking resources, and storage.
Internet	The internet is a global network of interconnected computers and electronic devices that communicate with each other using established protocols.
Kubernetes	Kubernetes is a platform used in cloud computing to manage and orchestrate containerized workloads and services. It automates the operations of Linux containers, making it easier to deploy and scale applications efficiently. It helps organize and manage containers so that applications run smoothly and efficiently in the cloud environment.
MCS – Managed Cloud Services	Managed Cloud Services in cloud computing refer to the practice of outsourcing the management and control of a client’s cloud platform to a third-party service provider.
Middleware	Middlewares in cloud computing refer to software and services that facilitate communication and interaction between different applications, data sources, and services in a cloud environment.
MSP – Managed Services Provider	In cloud computing, a Managed Services Provider (MSP) is a company that offers various IT services to businesses or organizations. These services can include managing and monitoring servers, desktops, mobile devices, and other IT infrastructure components
Monolithic	In cloud computing, a monolithic architecture refers to a traditional approach where an application is built as a single, unified unit. It implies that all the different parts of the software, such as the user interface, database access, business logic, and other functionalities, are combined into a single entity.
Microservies	Microservices in cloud computing refer to an architectural style where a large application is broken down into smaller, independent services that are loosely coupled and can be developed, deployed, and scaled independently. Each microservice focuses on a specific business function and communicates with other services through APIs.
Multi Cloud	Multi cloud in cloud computing refers to the practice of using multiple cloud services from different providers simultaneously within one architecture.
Platform as a Service – Paas	PaaS provides developers with all the tools and resources they need to build and run applications without the hassle of setting up and managing the underlying infrastructure.
Private Cloud	A private cloud in cloud computing is like having your own exclusive club for data storage and processing.
Public Cloud	A public cloud is like a virtual space where companies can rent computing resources, like servers and storage, from a third-party provide.
Serverless Computing	Serverless computing in cloud computing is a model where developers can build and run applications without the need to manage servers or backend infrastructure.
SQL database	SQL database refers to a relational database that is hosted and managed on a cloud platform. This type of database allows users to store, manage, and retrieve data using SQL queries over the internet.
VDI – Virtual Desktop Infrastructure	Virtual Desktop Infrastructure (VDI) in cloud computing refers to the technology that allows users to access virtual desktops hosted on cloud servers rather than physical machine.
Virtualization	Virtualization in cloud computing refers to the process of creating virtual instances of physical resources such as servers, storage, and networks to enable efficient resource sharing, scalability, and flexibility within a cloud environment.
VM – Virtual Machine	In cloud computing, a Virtual Machine (VM) is like a simulated computer that runs on a physical server in a data center. It operates independently from the actual hardware and can run its own operating system and applications.
VMware	VMware in cloud computing refers to a set of software and solutions that enable the creation of virtual machines on physical servers. These virtual machines can run multiple operating systems simultaneously, allowing for efficient utilization of hardware resources.
VPN – Virtual Private Network	A VPN (Virtual Private Network) is a technology that allows users to establish secure and encrypted connections to cloud services and resources over the internet.
VPS – Virtual Private Server	A Virtual Private Server (VPS) is like having your own private space on a shared server.
Workload Configuration	Workload configuration in cloud computing refers to the setup and arrangement of various components that make up a workload within a cloud environment.