May 18, 2021

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Cloud migration strategy for banks and businesses

Cloud migration strategy for banks and businesses



According to Delloite, the demand for cloud migration is growing due to blockages and the need for many companies to work from anywhere. “Work from anywhere”, also referred to as WFA, a “forced experiment” as Deloitte calls it, is considered a hit among many employees and employers. So while not a megatrend, migrating to the cloud as part of digital transformation continues to grow in popularity.

Why migrate to the cloud? Here are obvious reasons:

  • You have data issues like lack of enough space to store data on-site, inability to comply with regulations due to missing some data, etc.
  • Your company cannot guarantee effective collaboration between employees, as well as between employees and customers.
  • The data you use is not protected enough to feel safe.
  • Your organization’s IT infrastructure is overloaded and complicated, and there is a strong need for expansion as your business grows.
  • The costs you spend on on-premise systems are too high and you don’t know how to optimize them.

Sure, many other reasons may be familiar and specific to your business in particular. The challenges you face make you think about moving to the cloud, but how do you get started? Below you will find a clear step-by-step cloud migration action plan.

Guaranteed success of your software project with a free 30-minute strategy session!

To start

Value of cloud migration

Did you recognize the reason for the cloud migration in the list above? Now let’s talk about the potential value you can achieve when migrating to the cloud.

Here are the 5 most valuable benefits:

Cooperation

With access to the cloud, entrepreneurs improve collaboration within their companies. The same goes for collaboration between employees and customers. As a sales representative, for example, you can immediately respond to a customer by attaching the requested information directly from any device.

The manager will not need to arrive at the office to answer the request. The customer, in turn, would be happy to receive the answer as soon as possible. It works especially well for companies where quick responses to customer inquiries are a must – insurance, banking, fintech, healthcare, to name a few.

Cost

Pay for what you use ”is the primary pricing principle for cloud services. Typically, cloud service plans include the price of the web server hardware, support, maintenance, etc. In this way, operating costs can be significantly reduced. To make sure this is true, you must first analyze and calculate the total cost of ownership (TCO) for the cloud computing technology, if adopted by your business.

Integration

Migrating to the cloud can give rise to integration capabilities which, in turn, will ensure data exchange in real time. By getting real-time data, you can improve decision making and forecasts in your business.

Scalability

Fast growing SMEs and businesses find a real problem when they fail to grow at the desired pace. This is a real challenge when it comes to an increasing number of customers, products and services, data that should be stored and analyzed according to certain regulations. The cloud allows for painless horizontal or vertical scaling with existing IT infrastructure.

Safety

Most cloud service providers comply with the security regulations introduced in PCI-DSS, HIPAA, ISO27001, AICPA / SOC certificates. In addition, they provide far more security features than traditional data centers. Hence, you can rest assured that your business data is safe.

So how do you move your legacy applications to the cloud?

Best practices for migrating to the cloud

If you have decided to migrate to the cloud, you should be ready to allocate resources to manage the organizational changes associated with this process. You should be smart about cloud migration strategies. Major cloud service providers share the most effective cloud migration strategy steps. For example, here’s how Microsoft Azure presents its roadmap:

Image source: Azure cloud migration strategy

Azure cloud migration strategy it is divided into three phases: before migration, during migration and after migration. As you can see in the figure, the first phase includes the definition and planning of the strategy, the second – preparation of the environment and workloads, and the third – implementation and management. Each stage cannot be ignored and plays its unique and instrumental role in the success of the migration.

Amazon Web Services offers six application migration strategies, also called “the six Rs”:

  • Rehosting, also known as lift-and-shift
  • Replatforming
  • Repurchase
  • Refactoring
  • Taken of
  • Keep

More details on AWS cloud migration strategies – read here.

AWS Cloud Migration Strategy

Image Source: AWS Cloud Migration Strategy

What are the types of cloud migration?

Three types of cloud migration include: full, partial, parallel. Let’s take a look at what each of these mean.

  1. Full migration refers to the type of on-premises to cloud migration. Traditionally, it’s the process of moving your existing physical IT infrastructure (applications, data, settings) to the cloud. The end result of this migration is the same infrastructure known and clear to your employees, but in the cloud. Small and medium-sized businesses usually opt for full migration as their IT systems are not as large as those that belong to enterprises. The execution typically takes a few days and faces minimal risks. The downside to this is that not all cloud features are available.
  2. Heritage migration transfers only a portion of IT systems and data to the cloud. This is a good way to test the cloud service and figure out if you really want to completely move your infrastructure. Usually, large companies use this approach.
  3. Parallel migration means you can use your existing system when migrating to the cloud. The peculiarity of this mode of migration is that it will be necessary to maintain both systems at the same time.

What’s the best cloud migration strategy? The one that suits your needs and opportunities. It is always a daunting task for companies to choose an appropriate migration approach. Therefore, we offer our professional help in this.

Check out our data migration services.

Cloud migration strategy roadmap

Our cloud data migration experts recommend following these tips to create an appropriate roadmap. If you need individual advice, we are always happy to communicate.

Request a free 30-minute strategy session to get more detailed information.

1. Define and involve stakeholders

Before any project begins, its key stakeholders and knowledge owners should take part in the cloud migration process. These people must come from both the IT and the corporate side. By involving all stakeholders at the beginning of your migration journey, you will avoid problems in the future. What can come in handy is the definition of the role. List all potential stakeholders and write their roles and responsibilities in the cloud migration process.

2. Create a cloud migration strategy document

The strategy should contain project goals and objectives, a plan, a work breakdown structure (WBS), a timeline with phases, a list of stakeholders with their roles and other important information that can be consulted further.

3. Calculate the total cost of ownership

Calculating TCO is key in your cloud migration strategy. To calculate it, you use some online calculators offered by cloud service providers or ask your software provider to help you do it.

4. Conduct software audits

For successful migration to the cloud, an audit of all existing software systems on-premises must be conducted. This action is instrumental in identifying all the gaps and weaknesses to be addressed before migration otherwise you risk having unexpected problems.

5. Work with a trusted supplier

Choosing the right cloud platform, technology stack, and cloud migration tools yourself is a daunting task. This work should be done by professionals. So, make sure your supplier has relevant skills and can guarantee project results.

6. Discover all the options

As mentioned above, there are different types of migration strategies. Your task is to choose the most appropriate, the one that fits your company’s workflow. Below is more detailed information on the three recommended migration strategies.

7. Think about deactivating

After the migration is complete, consider the next decommissioning steps for the on-premises infrastructure. Deactivation reduces IT overhead and eliminates the need to manage legacy systems.

8. Manage and shape

At the end of the project, train all stakeholders and employees to take full advantage of the new systems. Keep training and continually update your colleagues on the new features, security measures and collaboration opportunities offered by the cloud.

Here is some valuable insight into Oracle’s cloud migration strategy for banks.

Do you need professional cloud migration services? Get a free 30-minute consultation from our experts.

Guaranteed success of your software project with a free 30-minute strategy session!

To start