8 Cloud Transformation Strategies for Large Enterprises

Kristijan Pušić | July 8th, 2024

Migrating legacy systems to the cloud is a critical move for large enterprises aiming to enhance flexibility, scalability, and efficiency of their software solutions. However, this transformation involves significant challenges and requires a well-planned strategy. Large enterprises and their aged Java-written legacy systems carry a lot of business logic inside its code. Sometimes legacy systems are written even more than 10 years ago. That can be very challenging to unwrap and move to the cloud. In this article, I will explain eight strategies of the cloud transformation process.

Introduction into the 2024 Cloud Situation

Maybe the bare functionality of legacy software is clear, and all seems okay to proceed with the cloud transformation. But let’s see where the IT industry is going nowadays with the Cloud solutions before we actually start the process.

The price of a server computer and its abilities has grown to the point that from a money perspective, it is not so smart to change bare metal logic in the company. No need to move to the cloud to save some money. Maybe not for all software the company needs, but if nothing for security reasons, let’s keep some in company servers running.

Why are some companies leaving the cloud?

Big Rise in Cloud Computing Market in Overall

Although price as a reason to move to the cloud is not relevant anymore, we see a large rise in growth in the cloud market. Worldwide end-user spending on public cloud services is forecast to grow 20.4% to total $675.4 billion in 2024, up from $561 billion in 2023, according to the latest forecast from Gartner, Inc.
It is clear with these statistics that business is still largely moving to the cloud. Just reasons are maybe not related to cheaper cloud services than running their own bare metal servers. This growth is being driven by generative AI (GenAI) and application modernization.
Now, let’s move to what are the actual steps to have a successful transformation. Eight best practices to ensure a successful cloud migration are as follows:

1. Assessment and Planning

Before initiating the migration process to the cloud, a thorough assessment of the existing IT infrastructure, applications, and workloads is essential.

This involves:

Inventory and dependency mapping: Catalog all applications and their dependencies to understand the interconnections and prioritize migration efforts.
Cost-benefit analysis: Evaluate the costs and benefits of moving each application to the cloud. Consider factors like performance, security, compliance, and cost savings.
Cloud readiness assessment: Determine the readiness of each application for cloud deployment. This includes compatibility with cloud environments and potential need for refactoring or rearchitecting.

2. Choosing the Right Cloud Model

Select the appropriate cloud model based on the enterprise’s needs:

Public cloud: Ideal for applications that require high scalability and availability.
Private cloud: Suitable for workloads with stringent security and compliance requirements.
Hybrid cloud: Combines the benefits of both public and private clouds, allowing data and applications to be shared between them.

3. Data Migration Strategy

Data migration is often the most complex part of the cloud transformation process. Best practices include:

Data integrity and security: Ensure data integrity during the transfer and implement robust security measures to protect sensitive data.
Minimal downtime: Plan migrations to minimize downtime and avoid disruptions to business operations. This may involve phased migration or using data synchronization tools.
Data governance: Establish data governance policies to maintain data quality and compliance with regulatory requirements.

4. Application Modernization

Legacy applications may need to be rearchitected or refactored to take full advantage of cloud capabilities. Approaches include:

Rehosting (Lift and Shift): Moving applications to the cloud with minimal changes. This is a quick and cost-effective approach but may not fully leverage cloud benefits.
Refactoring: Modifying the application code to better suit the cloud environment. This can improve performance and scalability but requires more effort and investment.
Rearchitecting: Redesigning applications to be cloud-native, using microservices and serverless architectures. This approach maximizes cloud advantages but involves significant changes.

5. Security and Compliance

Maintaining security and compliance is crucial during and after migration. Best practices include:

Access controls: Implement strong access controls and identity management to protect cloud resources.
Encryption: Use encryption for data in transit and at rest to safeguard against unauthorized access.
Compliance: Ensure that cloud environments comply with industry-specific regulations and standards such as GDPR, HIPAA, and others.

6. Testing and Validation

Thorough testing and validation are critical to ensure that applications function correctly in the new environment. This includes:

Performance testing: Assess the performance of applications in the cloud to ensure they meet required service levels.
Security testing: Conduct security assessments to identify and mitigate potential vulnerabilities.
User Acceptance Testing (UAT): Involve end-users in testing to validate that the applications meet their needs and expectations.

7. Training and Change Management

Ensure that IT staff and end-users are adequately trained to work with the new cloud-based systems. This includes:

Training programs: Develop comprehensive training programs to upskill IT teams and end-users on cloud technologies and best practices.
Change management: Implement change management strategies to address resistance and facilitate smooth adoption of cloud services.

8. Monitoring and Optimization

Post-migration, continuous monitoring and optimization are essential to maintain performance and cost-efficiency. This involves:

Monitoring tools: Use cloud-native monitoring tools to track performance, usage, and costs.
Optimization: Regularly review and optimize resource allocation to avoid wastage and reduce costs.

Migrating legacy systems to the cloud is a transformative journey that requires a lot of planning, strategic decision-making, and continuous improvement. By following these eight best practices, you can navigate the complexities of cloud migration. In doing this, you unlock significant benefits, including improved scalability, flexibility, and a bit less cost-efficiency.

One of the critical aspects of a successful cloud transformation, from Setronica experience, is establishing a robust change management framework.

This involves engaging stakeholders at all levels, from senior executives to end-users, to ensure they understand the benefits and changes that come with cloud migration. Change management should also include regular communication and updates about the progress of the migration, addressing any concerns, and highlighting quick wins to maintain momentum and buy-in.

Another crucial factor is leveraging automation tools wherever possible. Automation can significantly streamline the migration process, reduce the risk of human error, and enhance efficiency. Tools for automated testing, deployment, and monitoring can help maintain consistent performance and security standards throughout the migration journey. Utilizing infrastructure as code (IaC) can also simplify the management of cloud resources and ensure that configurations are consistent and reproducible.For more detailed insights on cloud migration strategies, you can visit AWS Cloud Migration and Azure Migration and Modernization Center. Please contact me via a form for any further questions that might come regarding cloud transformation strategies.

FAQ

What are the cost implications of migrating to the cloud?

Migrating to the cloud involves both initial and ongoing costs. While there may be upfront expenses related to the migration process, cloud services can offer cost savings through pay-as-you-go models, reduced hardware maintenance, and scalability. It is essential to conduct a thorough cost-benefit analysis to understand the financial impact fully.

How can we ensure minimal disruption to business operations during migration?

To minimize disruptions, it is crucial to plan for phased migration, use data synchronization tools, and schedule migrations during off-peak hours. Establishing a rollback plan in case of issues and continuously communicating with stakeholders can also help mitigate operational impacts.

What measures should be taken to address data security during cloud migration?

Ensuring data security involves implementing robust access controls, encrypting data both in transit and at rest, and complying with industry regulations such as GDPR and HIPAA. Regular security assessments and monitoring are also vital to protect sensitive data throughout the migration process.

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Kristijan Pušić

IT consultant and Business developer

Our consultant is at your disposal from 9 AM to 5 PM CET working days from Monday to Friday for any additional questions.

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SETRONICA

Setronica is a software engineering company that provides a wide range of services, from software products to core business applications. We offer consulting, development, testing, infrastructure support, and cloud management services to enterprises. We apply the knowledge, skills, and Agile methodology of project management to integrate software development and business objectives effectively and efficiently.

8 Cloud Transformation Strategies for Large Enterprises

Introduction into the 2024 Cloud Situation