Cloud migration and how to overcome your CIO's trepidations

Martin Biggs at Spinnaker Support explains how to understand the pros and cons of migration to the cloud

Businesses are too often sold the idea that adopting a full cloud strategy is a sure-fire way to streamline operations, improve productivity, and boost revenue. 

What many cloud-first advocates leave out, however, is that migrating a business’s infrastructure to the cloud can be costly and disruptive. And, if done incorrectly, it can even create gaps in a firm’s security.

Some of this pro-cloud pressure comes from big software vendors whose own operational priorities involve moving almost entirely to the cloud. In recent years, as a consequence of this, support for legacy applications has faded away. CIOs are feeling the pressure to migrate their systems. Many fear being left behind.

But plenty of these CIOs have trepidations about a migration to the cloud, and it’s easy to understand why.

Global economic turbulence has business stakeholders asking important questions about efficiencies, cost-savings, and contingency plans if the recession hits them hard. CIOs know they need to streamline costs, allocate budgets effectively, and focus their teams’ expertise on revenue-generating IT projects.

What, then, should CIOs consider before embarking on a cloud migration project? And are there cost-saving alternatives for businesses who don’t want – or simply don’t need – to shift all their operations to the cloud?

The ERP way
Legacy enterprise vendors are keen to push their customers towards fully cloud-based futures with a total reliance on their services and products – along with an intrinsically bundled maintenance package to support it.

But CIOs know that there are choices out there when it comes to cloud environments, and they are right to be wary of adopting sweeping new technology or infrastructure that their business isn’t completely committed to. 

All this means that it’s essential to consider all the options before deciding. Take a hybrid cloud scenario, for example, where a combination of on-premise and cloud infrastructures is used as part of a composite solution. Businesses can keep their, financial, or security critical Oracle/SAP ERP elements on-premise, while shifting microservice-based applications to the cloud. 

These approaches may not be as popular with vendors, but they give individual businesses the freedom and, crucially, the flexibility, over how their estates are managed.
 
This freedom also means better control over the costs associated with cloud migration. Many cloud proponents are quick to point out that leveraging cloud systems can save costs in the long run, but individual CIOs should also consider how diverting costs from business-critical activities to an infrastructure overhaul may not actually result in a better, more cost-efficient system.

For example, businesses with complex environments require enhanced software support systems. SAP customers who make the move to SAP Cloud applications will pay, on average, double their current annual support fees, and even if the cost reduction case makes sense in the initial term, (after heavy discounting) - there’s no commitment that the price won’t escalate uncontrollably after the committed term

Data security
45% of businesses have experienced a cloud-based data breach or failed audit in 2022, up 5% from the previous year, according to the 2022 Thales Cloud Security Report. This is a worrying trend and should be enough to persuade business leaders that data protection and security must form a central pillar of any cloud migration strategy.

Moving over to the cloud transforms an enterprise’s security responsibility. Data centres belong to cloud vendors – the security and maintenance of those systems are beyond each individual business’s control.

What this means in practice is that entirely new security policies and controls are required for all businesses leveraging cloud services. Business leaders must be aware of where their data is, how secure it is, and how they can strengthen their internal policies and procedures to ensure that they do not fall victim to a data breach. 

This requires staying informed of data regulations and the expectations of the business, as well as the expectations of the cloud provider, when it comes to data storing, handling, and management.

The governance and security requirements of a business’s on-premise infrastructure must be aligned with the requirements in potential cloud infrastructures or applications. Letting security gaps develop during a migration is a recipe for disaster.

Performance and improvement markers
A good rule of thumb is always to work with partners and vendors that your business can trust and that will align to your business’s innovation or digitization goals.

That’s why CIOs should be wary of any catch-all promise that moving or rehosting all applications to the cloud will instantly make their business more agile, profitable, and productive. Going all-in on cloud doesn’t necessarily guarantee this. 

Instead, ask yourself: will moving foundational ERP capabilities, such as financials, help your business realise operational gains? Will it be worth the cost?

Take the time to work with your vendors and partners to understand how each application or product will perform in the cloud. How will they interact with your other systems in place? Will they easily be accessible to all your workforce – wherever they’re located? How will security controls be integrated without compromising user productivity?

Undertaking a full cloud transition must make business sense – especially if the resources required for the migration are being diverted from other operational priorities that could themselves be crucial for future innovation initiatives.

Because ERP vendors’ flagship cloud products are built with the typical business in mind, they may not be functional for businesses with complex, bespoke, or customised needs. Taking the plunge and committing to an ERP’s complete suite of cloud offerings could hinder a business’s ability to access the exact products, services, applications, and support that it needs.

If a business is about to embark on, or is in the middle of, a cloud migration project that requires three or more years of support for legacy applications, third-party support could be a solution that can help pace out the migration according to the business’s unique needs.

Third-party software support providers have revolutionised the support framework – reducing overall software maintenance costs as well as providing critical digital transformation services, from customised environment support and consultancy to extensive security offerings and a commitment to understanding each business’s unique requirements and digitization plans.

Cloud solutions work well for many businesses, aligning with their objectives and delivering innovative benefits. But before any CIO embarks on a cloud migration strategy, they should consider their options. Work with like-minded vendors and plan out exactly how this strategy will help minimise operational risk while improving business performance. 

A full transition to cloud doesn’t necessarily mean a profitable and productive future. Business leaders know what’s best for their business and its infrastructure, and they shouldn’t forget this when discussing cloud migration projects and plans.

Martin Biggs is Vice President and Managing Director, EMEA and Strategic Markets, Spinnaker Support

Main image courtesy of iStockPhoto.com