Why Cloud Migration Remains A Hurdle For Some Enterprises

Recent market data suggests that cloud migration is on the road toward considerable growth over the following years. From USD$119.13 billion (AUD$158.55 billion) in 2020, experts forecast it may almost quadruple in value by 2026 to USD$448.34 billion (AUD$596.69 billion). Small and medium enterprises have been primarily infusing this market with lucrative investments. (1)

It’s easy to see why. Moving workloads and other data into the cloud provide a slew of benefits, from faster delivery of results to reduced overheads. The figures above show that the cloud may as well be the future of doing business.

Yet, for all its promises of making even a small business competitive, cloud migration isn’t as widespread as one might think. Some companies have yet to adopt the technology, while those already doing so are still working out the kinks. So, what’s keeping them back?

For the record, the promise of lowering operational costs is real. One company vouched that it has seen a significant reallocation of its IT maintenance budget, from 85% pre-cloud to 60%. Another company claimed that moving to the cloud helped reduce their IT budget by up to 40% over four years of coming online. (2)

That being the case, many entrepreneurs continue to fall into the cost trap. Just because cloud migration brings cost-saving benefits doesn’t necessarily mean said benefits will kick in as soon as it’s active. A survey of 750 decision-makers in 2021 proves this, as managing cloud spending is the second most significant hurdle, next to security. (3)

Thinking that cloud migration takes effect immediately is a mistake. In a 2017 survey, 73% of respondents said their cloud migration projects took between one and two years, while 43% said theirs took more than two years. The drawn-out timeline had resulted in 55% of the projects going over budget. (4)

The mounting cost and failure of meeting expectations, among other factors, have forced some to repatriate or move their workloads back to on-premise or other legacy systems. However, such a trend shouldn’t be mistaken for abandoning the cloud entirely, as hybrid setups remain a viable option in the business scene.

The adage ‘If you fail to plan, you plan to fail’ rings painfully true in cloud migration. Complex technologies like cloud computing require thorough planning to help businesses avoid potential pitfalls such as the aforementioned cost trap.

Even with a cloud migration strategy in place, most businesses still see their projects go over budget by 20% more or less. The risk of being behind schedule also exists, with a little over a third of projects being behind by at least three business quarters. (5)

Experts stress that not having a plan leads to far worse consequences, let alone a good case given its inevitability. Believe it or not, it’s not unusual for business leaders to adopt cloud tech over reasons like ‘our competitors are doing it’ and ‘it’s the future of doing business.’

These sentiments are understandable, but planning for cloud migration demands an objective evaluation of a business’s goals and needs. A competitor that needs to upgrade its servers to cloud-based ones won’t necessarily be the case for others. On top of that, a lift-and-shift might not be as critical as re-platforming for a specific cloud migration project.

Finding the right people to operate the cloud-based systems is equally important, if not more. In the words of several industry experts, how a company’s workforce reacts to cloud migration can mean the difference between success and failure.

As cloud computing has become a well-established sector, the technological aspect is no longer as significant as several years ago, though still vital. After all, even companies and institutions that have yet to move to the cloud are using the technology. Employees should be in a good position for upskilling, considering they’ve been using it for a while.

In this case, experts recommend promoting engagement through employee buy-in. It entails making the workforce understand the reasons for deciding to, in this case, adopt cloud-based solutions. Sound arguments and details will go a long way to motivate the workforce, but they must come from a good case for moving to the cloud.

As with any complex business solution, cloud migration should be taken seriously. The nuts and bolts that go into such a project require vast investments of time, energy, and, most importantly, capital. Any missing element will hinder a business from reaping the full rewards of moving to the cloud, perhaps even forcing them back to the drawing board.

1. “CLOUD MIGRATION MARKET – GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2022 – 2027)”, Source: https://www.mordorintelligence.com/industry-reports/cloud-migration-services-market
2. “Cloud Migration + Cost Savings = Innovation + Agility”, Source: https://www.cio.com/article/191253/cloud-migration-cost-savings-innovation-agility.html
3. “2021 STATE OF THE CLOUD REPORT”, Source: https://resources.flexera.com/web/pdf/report-cm-state-of-the-cloud-2021.pdf?elqTrackId=28d62429a6ec40d0bb8e92159e68d63a&elqaid=6545&elqat=2
4. “73% of cloud migrations take a year or longer, report says”, Source: https://www.techrepublic.com/article/73-of-cloud-migrations-take-a-year-or-longer-report-says/
5. “Cloud-migration opportunity: Business value grows, but missteps abound”, Source: https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/cloud-migration-opportunity-business-value-grows-but-missteps-abound