Migrating to the cloud is essential for organizations that still haven’t done this. Whereas a cloud transformation goes much further, completely changing how an organization operates and works, taking a cloud-native approach.
Let’s take a look at the difference between cloud transformation vs cloud migration in this article.
Key Takeaways
- Cloud migration involves moving IT networks, applications, and data storage to cloud environments, thereby transitioning away from outdated on-premises (on-prem) infrastructure.
- Cloud transformation takes that one step further, using technology to overhaul and transform how an organization works, operates, and innovates.
- The impact of a transformation project should be felt across an entire organization, and for the customers and users.
Definitions: Cloud Migration vs Cloud Transformation
The majority of organizations already use cloud software, storage, hardware, and networks within their IT infrastructure.
Some of the world’s largest cloud platforms: Amazon Web Services (AWS), Google Cloud Partner (GCP), and Microsoft’s Azure support vast amounts of the world’s computational and data storage needs.
Financially, the cloud market is enormous. According to Goldman Sachs US Software Research, “cloud computing sales are expected to rise to $2 trillion by the end of the decade.”
As of 2023, it was worth “$496 billion, representing a 26% compound annual growth rate” since 2019. Now that Generative AI tools are becoming an increasingly important part of how we work, it’s estimated that a minimum of $300 billion worth of growth will be spent on AI tools and solutions.
AI tools are increasingly playing a role in cloud migration and transformation, automating previously manual tasks and making these processes more efficient.
What Is Cloud Migration?
Cloud migration is the process of moving software, hardware, and IT systems and processes from on-premises infrastructure (on-prem) to a cloud-based infrastructure.
Over the last few decades, cloud migration has accelerated, driven by a massive shift away from on-prem IT infrastructure and configurations. It’s estimated that 94% of organizations already use cloud infrastructure, storage, and software in some format, and 85% will complete a cloud-first transition before the end of 2025.
For these reasons, on-prem IT infrastructure has fallen out of favor in boardrooms, the C-Suite, and IT leaders. The push into the cloud has become almost the default for the following reasons:
- Lower cost and more operationally efficient:
- In most cases, you pay via a subscription model;
- No upfront capital expenses (CapEx) and no ongoing maintenance or upgrade costs.
- Flexible and scalable:
- With Software as a Service (SaaS), you can scale up and down as needed;
- The same is true of IaaS (Infrastructure as a Service) and PaaS (Platform as a Service).
- IT that grows with your organization:
- Cloud providers (whether we are talking SaaS, PaaS, or IaaS), need to keep innovating, which means you should benefit from the latest technological advancements, like the incorporation of AI into what your organization is using;
- Expertise and support are provided;
- Security is built in as standard, and is also advancing to meet new threats.
The downsides, such as a reliance on third-party organizations for software, hardware, and basic computing needs, aren’t as much of a concern as they might have been 20 years ago.
Cloud computing has evolved enormously since it emerged as a concept. Since then, on-premises infrastructure has become increasingly rare, outdated, and unsupported by IT vendors.
With DuploCloud, your cloud migration is in safe hands with the latest automation and Infrastructure-as-Code (IaC) techniques. DuploCloud can manage your entire cloud migration journey, from initial strategic planning to final implementation.
Once a migration is complete, you can manage every aspect of your cloud infrastructure in DuploCloud’s cloud suite, including compliance, security, app deployment, and CI/CD pipeline integration.
Let’s see how that compares with cloud transformation.
What Is Cloud Transformation?
On the other hand, a cloud transformation is, as the name implies, broader than a cloud migration.
A cloud transformation could happen after a migration has already been implemented, or it could take place at the same time. In either scenario, a cloud transformation involves a fundamental restructuring and overhaul of how an organization operates its IT infrastructure, processes, and systems.
Cloud transformation extends far beyond a migration. If we think in simple terms, on a warm day, you can work outside. Your computer is the same; you are just taking it to the garden.
Transformation involves purchasing a completely new, more powerful computer and utilizing it to work in entirely different, more efficient, and productive ways.
As a concept, cloud transformation is about leveraging the inherent features and abilities of a cloud environment to make your IT operations completely cloud-native. This means using the enhanced scalability and flexibility of the cloud to improve everything:
- Computational power;
- Security;
- Speed;
- AI adoption;
- Enhanced workloads;
- Reducing operational waste;
- Redefining job roles and how staff use applications, data, and storage.
Naturally, all of this does involve more work, more risks, greater costs, and it takes longer than a cloud migration project. Only undertake a cloud transformation project if you understand all of that beforehand, and are working with an IT partner that can support your organization every step of the way.
Key Differences in Scope, Effort, and Outcomes
A cloud migration is about where you run your IT systems, software, and store data. This means moving away from on-prem IT operations and migrating everything, or as much as possible (a scenario known as taking a hybrid approach) to the cloud.
A cloud transformation is about how those IT systems, software, and data storage networks are built, deployed, and maintained.
You can’t do one without the other. If you want to implement a cloud transformation, then this has to start with cloud adoption. There are three key differences:
- The scope is greater, more enhanced and involved with a transformation vs a migration.
- The effort is greater, too, as a transformation is a multi-stage process that can take a lot more time. Think several consecutive quarters rather than months.
- As a result, the outcomes and ROI should be greater, too. You may not notice much of a productivity difference with a simple migration, but you should with a transformation.
Goals and Use Cases for Cloud Transformation and Migration
A simple cloud migration is usually enough when there’s nothing much that needs changing about your IT operations, apps, network, and data storage.
In most cases, if there aren’t ways to improve how your team uses the technology at their disposal, then a full-scale transformation is unnecessary.
However, for larger organizations struggling to increase productivity, streamline, or adapt to new innovations like AI, a cloud modernization transformation could be the perfect solution, and therefore, very necessary.
Examples: Lift-and-Shift (Migration) vs Cloud-Native Reengineering
Here is what both look like in practice:
- Cloud Migration: Moving an organization's monolithic application architecture, infrastructure, networks, and data storage into the Amazon EC2 (Elastic Compute Cloud) cloud platform storage. This counts as a relatively simple, straightforward, lift-and-shift operation.
- Cloud Transformation: This would be more involved, such as breaking a monolithic architecture into more productive and versatile microservices, orchestrated by Kubernetes (K8s), and integrated with a CI/CD pipeline. All of this would have to be done while respecting the cloud migration security environment. DuploCloud can help operationalize all of this.
Cloud Migration: A Tactical Move
A cloud migration often starts with a “lift-and-shift” approach to move quickly and avoid technical debt accumulation. Cloud migrations are often tactical and need to be done quickly to prevent mistakes.
Cloud Transformation: A Strategic Evolution
Whereas, a cloud transformation is a strategic evolution that takes time and involves multiple stages, such as:
- Reimagining Processes, applications, and company culture: You don’t start with the technology. It starts with understanding how your people and customers use your current tech setup, then determining how to improve this.
- Cloud-Native DevOps Deep Integrations: Going completely cloud-native means integrating DevOps into IT practices as an essential part of the transformative process.
- Long-Term Value: Agility, scalability, and innovation are integral outcomes for any transformation.
- Larger Complexity and Investment: Business leaders need to know that the budgets for a transformation will be larger, but so should the ROI and outcomes.
Now, let’s see how they compare in this quick reference summary table.
Comparison Table: Cloud Migration vs Cloud Transformation
| Cloud Migration | Cloud Transformation | |
| Goals | A simple, “lift-and-shift” move from on-prem to cloud | Completely modernize how the organization uses the cloud and technology |
| Timescale | Short to medium (a few months) | Medium to long-term (1 year or more) |
| Risks | Low to mid-risk | Higher risk, but long-term gains |
| Focus | Infrastructure, app, and storage-focused | IT and operational transformation |
| Outcome | An IT upgrade | An innovation and productivity upgrade |
How to Choose Between Cloud Transformation vs Cloud Migration for Your Organization?
There are several considerations to think about whether you go with a migration or cloud transformation.
- Business Drivers: Cost reduction, faster deployment, and enhanced innovation (with transformation vs. migration)
- Assessing Technical Debt and Cloud Readiness: Can you rehost or must you re-architect?
- Hybrid Approaches: Start with migration, transform over time, DuploCloud supports a phased adoption approach.
- Organizational Maturity and Skills Readiness: Are DevOps, CI/CD, and automation part of your culture?
Why Transformation Requires Cultural Shift
A successful transformation depends on cross-team collaboration and agile iteration. It’s not a simple process, and most organizations that attempt this lean on external support to manage the project.
It involves the budgeting of resources and time from everyone who will be impacted by any cultural and operational changes.
Role of Executive Sponsorship
Because transformation projects are long-term in nature, it’s crucial that your organization's leadership are prepared to see it through. There needs to be a realism about what this will involve from day one, to ensure that C-suite don’t give up 6-months in because an ROI hasn’t been achieved yet.
Aligning IT, Security, and Business Units
There is a lot that needs doing during a transformation process. Using platforms that automate security and compliance, like DuploCloud, a cloud provider can help bridge the gap between risk and innovation, covering everything from security needs to communication between various business units.
Closing Thoughts
The migration to cloud environments (like AWS, GGP and Azure) has been underway for over 2 decades, with the vast majority of organizations relying on cloud infrastructure for SaaS, IaaS, and PaaS functions.
However, going completely cloud-native and undertaking a cloud transformation is a more involved process. So, the following is worth remembering:
- Migration can be a stepping stone to transformation.
- It’s not a binary choice - many companies follow a phased or hybrid approach;
- Platforms like DuploCloud help organizations start fast and evolve gradually with built-in automation and governance.
Are you ready to make a cloud migration? Contact DuploCloud to book a demo today.
Cloud Migration vs Cloud Transformation FAQs
Can I do cloud transformation without first migrating?
No, that’s not really possible. To undertake any kind of transformation of your IT operations, you first need to migrate those same operations into a cloud environment. A cloud transformation is only possible within a cloud platform or a series of interconnected cloud platforms.
It’s often useful to attempt any kind of cloud transformation within a closed-loop environment, separate from everything else. That way, if anything goes wrong, it won’t impact your entire IT infrastructure, operations, data, and IT security.
What if my team only has experience with lift-and-shift?
Lift and shift, also known as rehosting, is simply moving everything that’s currently on-prem into a cloud environment. This approach doesn’t involve many changes to applications, infrastructure, data, or storage, except for where your IT operations are hosted.
That approach is acceptable if all you are doing is a simple migration. In many cases, a Lift and shift project can be done in-house, provided you’ve got IT team members who understand the cloud environment everything is being rehosted into. However, if your team doesn’t have the right knowledge or skills, then we wouldn’t recommend that approach.
Whenever possible, work with a team and the tools that can move your IT infrastructure into the cloud safely, while minimizing the risks of unexpected downtime, data breaches, or worse.
How do I calculate ROI for a Cloud Transformation vs Cloud Migration?
The best starting point for an ROI calculation is the following:
- The cost of not doing either (a migration or transformation);
- Factor into that the cost of a potential IT data security breach (which is more likely with your data on-prem);
- Then calculate the cost of a cloud migration (assuming you already have some IT operations in the cloud, and this is simply a case of finishing what’s already begun, migrating everything else to the cloud);
- Following on from that, calculate the cost of a cloud transformation.
- Use productivity, revenue increases, and any cost savings as the profit side of the equation.
- Then, deduct the cost of the cloud transformation from the net gains, and that should give you an estimated ROI.
Now, assuming there are upfront costs to having this work done, it should be possible to project those five or more years into the future. That should give you a long-term idea of the ROI once the costs are part of your P&L history.
Is cloud transformation always necessary?
No, this is only necessary if you’ve done a cost-benefit analysis and there’s a clear business and operational need to make significant changes to how cross-functional teams operate and work. If there are good reasons for undertaking a cloud transformation, and you’ve been able to calculate an ROI, and there is a clear roadmap to achieve your goals, then it’s worth going ahead with a cloud transformation project.
But it’s not mission-critical unless IT leaders and your C-Suite agree that this is worth pursuing.
