To ensure you are optimizing your cloud spend, monitor usage closely, identify underutilized resources, and consider using cloud-native features like auto-scaling to optimize costs. And remember, the more you can consolidate workloads onto fewer VMs or containers, the more cost-effective your cloud strategy will be.
The Financial Side of Cloud Migration
One major area that many organizations overlook is legacy software. If you are migrating homegrown applications, there is a good chance they contain hardcoded values like IP addresses or rely on specific network configurations. In some cases, you might even need to reverse-engineer some parts of the application to make it cloud-compatible.
The key takeaway here is simple: cloud migration is an investment. Even though you are migrating with the goal of long-term savings, the upfront costs, whether it is infrastructure, people, or time, can be significant. But with proper planning and a realistic understanding of what is involved, you can avoid some of the common pitfalls that companies face when migrating to the cloud.
Cloud adoption has evolved significantly in the past decade. What was once seen as a lofty ambition is now a fundamental part of business infrastructure for organizations of all sizes. However, many companies still face the same hurdles when it comes to cloud migration: cost and security. These are the two primary drivers that influence the decision to move to the cloud in 2025, just as they were years ago. But how we think about these drivers has shifted in response to new technologies, emerging risks, and evolving business needs.
One of the most common missteps organizations make during cloud migrations is neglecting to involve developers early in the process. Developers play a crucial role in ensuring that your applications will function optimally in the cloud, so it is essential to have them engaged from the beginning. Have them test their code in the cloud environment across all stages of development: from proof of concept to production. This helps identify potential issues with compatibility, performance, and security before you move everything over to production.
The first major consideration for most businesses is cost, specifically, how much they will save by migrating to the cloud. There is a common misconception that moving to the cloud will result in immediate savings or instant ROI. Unfortunately, this is not usually the case.
Networking and Security Considerations
In today’s landscape, security concerns around cloud migrations are more critical than ever. With new compliance regulations and an ever-evolving threat landscape, companies need to ensure that data protection and privacy requirements are met, whether it is GDPR, HIPAA, or industry-specific regulations like PCI-DSS.
Most companies today are migrating in three major areas: Infrastructure, Applications, and Data Storage. Each of these components requires a tailored strategy, depending on your organization’s needs. In addition to managing the physical infrastructure, you will also need to assess your software licenses, are your applications compatible with the cloud? Are they licensed for use in a public cloud environment?
Bringing Developers into the Mix
Cloud migration is not a “one-size-fits-all” solution. Your needs are unique, and your cloud strategy should reflect that. Take the time to map out each phase of the migration, including testing, scaling, and ongoing management. And always remember, even if the sharks are circling, a well-planned migration can keep your business swimming smoothly in the cloud.
Additionally, your security team will need to be on the frontlines. Even for a test cloud, you should ensure that user accounts are secured with strong passwords, and wherever possible, use certificates (self-signed or otherwise) to add an extra layer of protection. Node protections such as hardening, antivirus/malware scans, and log interrogation should also be implemented to prevent security gaps.
The Bottom Line: Cloud Migration Is an Investment
When evaluating cloud providers, make sure they meet your security standards. This means ensuring they offer features like encryption, automated backups, intrusion detection systems, and identity and access management (IAM) protocols that align with your organizational requirements.
Security Needs in 2025
Let us take a closer look at the costs of getting your team prepared. Many businesses already leverage virtualization technologies, which is a great start, but cloud is a different beast. While some cloud tools are open-source (and free to use), others come with licensing fees. If you are setting up a test cloud, you will want to weigh the costs of using open-source software versus opting for enterprise-level tools that come with vendor support. Either way, you will need resources to get your team up to speed, and that is going to cost you, time and money.
Once you start spinning up your test cloud, you will need to engage various departments to ensure your migration stays on track. Your network engineers, for example, will be crucial in ensuring that your cloud network can integrate with your existing infrastructure or operate independently. While cloud providers offer some degree of network flexibility, they will likely require adjustments to your current network setup, especially in terms of IP addresses and firewall configurations.
Beyond just paying for cloud services, you will still need to invest in the personnel and expertise to manage the transition. Migrating your systems and applications to the cloud requires specialized knowledge, whether you are using internal resources or engaging third-party consultants. And this is where things can get expensive.
The Application and Infrastructure Layer
The big question remains: Are you truly ready for the cloud? This is not just about having the technology in place, it is about aligning your business goals, security posture, and financial strategies with your cloud provider’s capabilities. Do you have the in-house expertise to execute a seamless migration? Do your developers understand how to optimize your applications for the cloud? Is your security team equipped to handle the risks associated with cloud data management?
Involving developers early also gives them the opportunity to optimize your application for the cloud, whether that is scaling it to take advantage of cloud resources or refactoring it to work with microservices and containerized environments. Not involving them early on can lead to costly rework later.
The Numbers Game: Costing Out the Migration
Richard Thayer
As you plan your migration, be sure to account for the overall cost of your cloud services. This includes not just the VMs or containers, but also the cost of bandwidth, storage, and any additional cloud services like managed databases, AI capabilities, or analytics tools that you plan to use. This is especially important when running applications in a public cloud, as costs can quickly spiral if you are not careful.
Cloud Readiness: Are You Really Ready?
Unlike the early days of cloud migration, where concerns about security were often limited to “keeping hackers out,” the stakes have risen. Companies are now dealing with multi-cloud environments, hybrid infrastructures, and complex third-party integrations. The data you are migrating may also include sensitive information, and that data needs to be protected at every stage, whether it is in transit, at rest, or in use.
Even if you plan to use your in-house staff to handle the migration, ask yourself: Are they truly ready? Cloud migration is a complex process that requires not only understanding your current environment but also being skilled in cloud technologies like infrastructure as code (IaC), containerization, and automation. If your team is not already well-versed in these areas, you will need to invest in training or bring in cloud experts to guide the process.
While cloud providers like AWS, Azure, and Google Cloud offer scalable and flexible pricing, it is important to recognize that there is no such thing as a free lunch. Even in a public cloud, you are paying for a host of services, including compute, storage, and bandwidth, what I like to call the “Three Ps” (ping, power, and pipe). These costs can quickly add up, particularly when your usage spikes, which is something many organizations overlook during planning.
