Cloud solutions have been with us for a long time, and it has already proven their value and potential to worldwide enterprises in improving their performance and operational agility. Witnessing the benefits and perks cloud ERP (enterprise resource planning) solutions provide, many organizations across multiple industries have already moved on from on-premise solutions to the cloud.
A market report estimated the value of the global cloud services market at $564.4 billion in 2022, with projected growth at a CAGR of 20.3 percent from $678.8 billion in 2023 to nearly $4.4 trillion by 2033.
A successful migration process generally involves shifting applications, your in-house data center, and other IT services from on-premises to the cloud, and it can be done in various ways (public cloud, multi-cloud or hybrid cloud). There are no one-fit-for-all solutions.
Different Types of Cloud Migration
As said earlier, cloud migration can be done in a number of ways depending on your business requirements. Is this your first migration? Do you need to transfer all into the cloud? Or partial to the cloud? Answering such questionnaires can help you to find the perfect approach that matches your current need.
Here are four ways of cloud migration performed by enterprises:
1. Rehosting
One of the easiest ways of cloud migration. Where they simply lift all your on-premise data, application, and workload to shift it into an IaaS (Infrastructure as a Service) cloud deployment. That’s why it’s also known as “lift-and-shift” or “forklift migration.”
2. Refactoring
Refactoring is much different than Rehosting. In this migration approach, we redesign the architecture of applications, data, and schemas from scratch, keeping the cloud in mind. The redesign can be happened before or after migration. This allows the user to experience your cloud platform’s latest and most advanced features. Initially, the cost of refactoring can be hefty, but in the long run, it will provide you with efficiency with your off-premise apps.
3. Replatforming
Replatforming involves some changes in the application but does not require a complete redesign. Thus fall somewhere in between Rehosting and Refactoring. This type of migration work shifts the data and schema to IaaS or to a PaaS.
4. Replacing
This migration strategy involves transferring data from current on-premises applications to cloud-based software-as-a-service (SaaS) applications developed by third parties, replacing the original in-house apps. This approach is particularly suitable for enterprises that have encountered security issues with their apps or are working with outdated tools (like FoxPro) that they consider less effective compared to third-party SaaS options.
How to Successfully Migrate from On-Premises to Cloud Infrastructure?
Each enterprise has its own business process, and a single migration strategy that worked for one may not be fit for another. For a successful migration, we need a plan or framework that can guide us to identify and implement the best migration process and implement it.
Here are five things that enterprises need to consider before moving to the cloud:
1. Create a Blueprint
Every successful migration needs solid groundwork. Here it means identifying your organization’s needs and making decisions based on your requirements. Being confident about what you need can streamline the whole process.
2. Do your Research
Examine the products and services provided by various vendors to gain an understanding of the overall expenses associated with each option. Additionally, take into account the logistical aspects and resource demands associated with different migration strategies.
3. Be Smart, Install Firewalls
Before the migration process, implement a cloud-based firewall-as-a-service (FWaaS) to reduce the risk of on-premises data exposure during transit.
4. Start Small & Expand Later
Plan your migration process in such a way that it does not create roadblocks to your business-critical operations in real-time. Start with a small one and test its cloud compatibility. Once you are confident with your data and app synchronization with the cloud, continue the rest of the migration process according to the plan.
5. There’s Always Room to Grow
After completing the migration, ensure to synchronize and update applications diligently according to requirements. In the case of a cloud-only migration, it is possible to deactivate on-premises systems. However, retaining these systems can be advantageous in various scenarios, such as hybrid cloud deployment.
Challenges Associated with Testing of On-Premise to Cloud Enterprise Solutions
When transitioning from On-Premise ERP to cloud ERP, several challenges arise. Especially when testing or implementing a new enterprise system. Here are a few points to keep in mind:
Giving Access to the Right Testers
Finding testers with extensive ERP testing knowledge can be challenging, and the effectiveness of ERP testing largely relies on their expertise and domain knowledge.
Integration with 3rd Party System
ERP solutions serve as a centralized repository of data and information, facilitating bidirectional data communication between the ERP software and external third-party tools. However, the establishment and testing of this integration remain an ongoing challenge.
Complying with Complex Business Rule
Customizing the ERP system involves adhering to business rules that regulate the flow of information and data between modules. The thorough setup and testing of these complex business rules present considerable challenges.
Final Thoughts…
In order to stay competitive in today’s digitally driven landscape, enterprises must migrate from on-premise infrastructure to the cloud. A successful migration requires a solid strategy, implementation, and testing. By migrating to the cloud, enterprises can realize the benefits of cloud solutions to scale and enhance security & flexibility without spending too much.
