You’re currently running your business on-premises but have heard the cloud computing buzz for years.

You’re hesitant to move your business to the cloud because you’re not sure if a migration is right for your business – or right for you. As a business owner, you want to consider every option to ensure your company’s success today and tomorrow.

The dizzying acceleration of the digital age leaves little doubt as to where the future of business is headed. Advancements in AI, machine learning, mobile computing, IoT, robotics and automation, and data protection are churning out quickly, with cloud computing leading the charge.

As the CIO of VAI and its subsidiary, VAI Cloud, an Enterprise Resource Planning (ERP) software provider, I have seen our customers achieve great success since the early days of cloud adoption. Over the past 10 years, many of VAI’s existing ERP customers have switched from on-premises deployment to VAI Cloud operations. This trend is expected to significantly increase in the next decade, as 80% of all new businesses will run their VAI ERP applications in our cloud.

Experts in the field predict that in the coming years, cloud adoption will continue to intensify. For example, cloud-based ERP is a key force behind sustainable technology, revolutionizing company management. According to Fortune Business Insights, Cloud ERP is showing a compound annual growth rate (CAGR) of 15.5%, with a projected value of $181.04 billion by 2032.

Embracing cloud migration requires thought, analysis, research, and commitment, and you might wonder where you should begin. This article presents an outline of cloud computing and deployment models, a look at the benefits and challenges of cloud migration, an explanation of high availability and disaster recovery modalities, migration best practices, and a conclusion for you to draw.

Let’s begin.

Traditional on-premises computing

An organization that controls and hosts its own hardware, software, and data in its physical location is on-premises computing. Instead of being stored at a distant location like a server farm or cloud, on-premises software is installed and used on computers located on the user’s or organization’s property. In this usage model, a client frequently purchases or leases server-based software as a licensee, installing it on either their own or rented servers.

Modern cloud computing

As I discussed in a recent article in Forbes, Cloud ERP is offered online and shares power consumption, cooling requirements, security, and operational functions with all the principles of the cloud, in contrast to traditional systems that are hosted on on-premises servers and data centers or older time-sharing services from decades past. By pooling these resources, this lowers the carbon footprint of each cloud tenant. Their almost infinite scalability and anytime, anywhere access allow businesses to adjust to their changing needs. By doing away with upfront hardware purchases and IT maintenance, cloud ERP also lowers costs. These businesses get a dependable subscription service that keeps the system secure and up to date. All things considered, cloud ERP is a significant advancement in contemporary business administration as it provides companies with a safe, scalable, and affordable substitute.

Migrating ERP applications to the cloud provides organizations with numerous benefits, such as advanced analytics, reduced costs, the elimination of physical infrastructure, faster deployment, easier scalability, better disaster recovery, and increased security features. Since on-premises licensing may no longer be necessary, application licensing such as databases and security can be eliminated and there’s no expenses associated with maintaining physical servers and in-office databases.

What are cloud computing models?

If you are considering moving your operations from on-premises to a cloud computing model, these models offer a variety of different acquisition choices for what provides the best deployment option that fits your needs and has various price points to consider. Choosing the best cloud computing solution for your needs requires an understanding of the various models and deployment techniques. Each model has its own advantages and disadvantages, and the decision is influenced by elements like cost, security, flexibility, and control.

Infrastructure as a Service (IaaS)

IaaS offers servers, storage, and networking resources that can be utilized as bare metal or virtualized for your needs. Because users have complete control over the infrastructure, virtual machines and other components may be customized and managed to your specific needs and security is deployed and controlled by the user.

Platform as a Service (PaaS)

PaaS allows you to bring your own licensed software you might have on-premises or acquired that you can control. Without having to worry about the underlying infrastructure, PaaS gives developers a platform to create, launch, and maintain apps. Databases, middleware, and development frameworks are among the tools and services it offers. This means you own the application, and everything under the application is provided by the service provider.

Software as a Service (SaaS)

SaaS offers subscription-based online software program delivery typically deployed in a multi-tenant environment. These apps do not require local installation or maintenance because users can access them from any device with an internet connection. The one thing to consider is that updates might be automatically updated, and care may need to be taken with customizations.

What are the cloud deployment models?

Public Cloud

Third-party managers oversee public clouds, which offer internet-based services to the public. Because they use a pay-as-you-go paradigm, they are affordable for managing heavy traffic and lowering the cost of IT infrastructure. Typically, SaaS is done in a self-deployment model where the end user is making decisions on configuration of the application.

Private Cloud

Private clouds offer dynamic computing resource provisioning and are exclusively used by one company. They are appropriate for businesses with stringent compliance standards since they provide greater control and security. For security reasons, private cloud usually is deployed with secure connections that are not accessible by the public. Only applications such as eCommerce or mobile applications would have a public-facing interface.

Hybrid Cloud

These clouds include elements of public and private clouds, enabling the sharing of apps and data between them. With a balanced approach to security, performance, and cost, this architecture offers increased flexibility and optimizes the current infrastructure.

Community Cloud

Several organizations or associations share community clouds for shared tasks or issues. They provide cooperative and affordable solutions that let businesses pool infrastructure and resources.

Multi-Cloud

Using several cloud service providers to satisfy requirements is known as multi-cloud. Through the distribution of workloads among several providers, it provides flexibility, cost-effectiveness, and enhanced performance.

Key benefits of cloud mgiration

In addition to managing IT, today’s CIOs must also assist business expansion by cutting expenses and fostering innovation and reduced time to market to gain a competitive edge. Businesses can reduce overall expenses and have the option of a fixed to a variable cost structure by using a cloud-based solution, which also frees up vital IT resources for innovation and strategic projects.

Access to cutting-edge technologies like artificial intelligence, machine learning, and big data analytics across domains is made possible via the cloud. Making use of these cloud-based solutions promotes innovation, enhances decision-making, and gives businesses a competitive advantage.

Cloud systems offer businesses of all sizes appealing flexibility and scalability. Without having to make large upfront investments, organizations can simply scale their resources up or down in response to demand, guaranteeing optimal performance. Businesses with varying workloads or those anticipating sudden or quick expansion may especially benefit from this agility.

Cloud environments make it possible to access data and apps from any location with an internet connection, which promotes better collaboration. Real-time collaboration and remote work are supported by this accessibility. Given that many teams may be in entirely different time zones and geographical locations, this might potentially increase productivity and promote seamless innovation across departments for most teams.

Here are more key reasons why harnessing the cloud’s potential can lead to new heights of competitiveness, agility, and creativity in the digital age:

• Reach economies of scale by using fewer personnel to increase productivity or volume output.

• Anyone with an Internet connection can securely access public or private clouds.

• Access is available to you any time and from any location.

• You can alter the course without facing significant “people” or “financial” repercussions.

• A low learning curve for hardware and software problems means fewer individuals can accomplish more work on a cloud.

• Expand and develop without having to purchase pricey software licenses or applications.

• Purchasing expensive software, hardware, or licensing fees is unnecessary.

• You can simplify processes to finish more work in less time with fewer staff.

• With all the AI options now available in the cloud, it can make adding AI easier.

What are the cloud migration challenges?

Whether at the start, during deployment, or after a cloud migration project, IT leaders frequently encounter additional challenges in managing their cloud infrastructure, such as optimizing costs, handling application sprawl, and scaling effectively.

For instance, depending on the cloud deployment model, it’s essential for IT leaders to monitor factors such as resource allocation and storage changes to prevent unexpected costs from accumulating or incurring additional fees from the cloud provider, especially if the cloud operates on a metered billing system rather than a flat or contracted rate.

Before installation, the cloud provider should be open and honest about the price of the service. Scale and application sprawl are additional issues. It can be challenging for IT workers to have a single view of their cloud environment because IT leaders may already have on-premises apps that they have moved to the cloud or use other management or monitoring apps. Given that their technological stack may have become excessively complex, this lack of visibility and application sprawl can also make it difficult to scale the environment with additional workloads or apps.

To address this, a well-thought-out project plan needs to be put in place so that the above-mentioned can be planned for and avoided. IT workers should seek out suppliers who can combine their technological stack into a single platform or console, making visibility, management, and optimization simpler and more effective.

Any large cloud migration might present cost management challenges. Even while cloud solutions can save a lot of money, poor planning and design, and implementation can result in uncontrollable costs. Financial hardship may arise, for instance, from failing to decommission outdated infrastructure, over-provisioning resources, or underestimating data transfer costs.

To properly control expenses, businesses should:

• Do a thorough cost analysis: Recognize the overall cost of ownership for both cloud and on-premises settings.

• Make the best use of the resources available: To prevent over-provisioning, use tools to track and control resource utilization.

• Take advantage of possibilities to save money: Utilize spot instances, reserved instances, and more cost-cutting measures offered by cloud service providers.

• Review your spending on a regular basis: Keep an eye on and evaluate cloud spending constantly to spot and quickly fix cost overruns.

Your IT systems are the foundation of your business, and you need 24/7 availability. Any downtime can lead to business disruptions, lost revenue, and unhappy customers. High availability/disaster recovery (HA/DR) solutions ensure uninterrupted operations for your ERP applications, providing continuous access by monitoring, identifying, and self-correcting replication problems.

What are best practices to ensure successful migration?

Allow time for preparation and data collection. Even within the same industry, every firm is unique. Early gathering of information is essential and should be done with extreme care to prevent future delays and expensive errors. Whether the go-live date will be rolled out based on geography or if it will encompass the entire business or application-based implementations is one aspect of the planning process.

Answer the questions on people and culture correctly. The jobs of employees are significantly impacted by ERP implementations. For others, it’s an opportunity period since they view system proficiency as a means of improving their careers. Others believe that a new ERP will result in adjustments to long-standing positions and duties. To facilitate an implementation strategy that results in employee buy-in, and long-term success, managers and executive teams must get the requirements and questions correct.

Test, test, and test again. Switching between systems is not as simple as pressing a button. Several data conversion tests are part of the implementation process. To assist with explaining any irregularities, organizations should combine this testing with documentation. Imagine, for instance, that one test is successful but that a second test results in data that is jumbled. The ability to link any modifications to results back to the effort is essential for implementation teams. Before you may schedule go-live dates, data conversions must be completed repeatedly.

Establish and maintain a goal. Organizations can encounter difficulties when they start the process of implementing a new ERP. Implementation can occasionally be complicated by a seemingly little feature that was missed during the planning stage. Sometimes the company chooses to take a different approach, reorganizing some parts of the business or introducing new features.

The software vendor and the organization’s migration team must have a clear process plan with agreed-upon phases and goals for what will occur before and after going live to prevent delays. The business wants to make sure that the software has all the necessary features when it goes live; any other features can be added later. As a result, the business can see a quicker return on investment.

Select the right cloud partner. The main cloud providers have different services, cost structures, and functionalities. Organizations should assess their perceived needs, including scalability, governance requirements, and data security, before selecting a supplier to select the best platform. Making an informed choice might be aided by carefully comparing the most popular cloud providers’ service offers and pricing policies. Selecting the appropriate platform supports the organization’s long-term strategic objectives and aids in cost effectiveness.

Conclusion?

Moving to the cloud offers a lot of chances for companies to increase productivity, minimize expenses, and adopt cutting-edge technologies that promote creativity and scalability. The advantages of cloud migration, such increased flexibility, worldwide accessibility, and strong disaster recovery solutions, can greatly advance enterprises in an increasingly digital world, even though the process requires careful planning, analysis, and implementation. Businesses can guarantee seamless cloud migration by tackling possible obstacles like cost control and system integration, adhering to best practices like comprehensive testing, and picking the best cloud partner. Adopting cloud computing is not just a smart decision for the present, but also a crucial step for long-term competitiveness and resilience as the business landscape continues to change.