In today’s fast-changing digital world, the question is no longer if businesses should move to the cloud, however it’s when and how they should do it. Because the cloud is an unstoppable force, offering everything from scalability to cost-efficiency and enhanced security. But what is cloud migration and its benefits, exactly?
Cloud migration in cloud computing is more than just a technical upgrade. It’s a strategic shift that impacts every aspect of a business, from operations to compliance.
However, cloud migration comes with challenges, like integrating complex legacy systems and ensuring regulatory compliance.
Let’s break down what cloud migration is and why it matters.
What is Cloud Migration?
Cloud migration in cloud computing is when an organisation moves its digital assets, services, databases, IT resources and applications into the cloud. It involves more than just moving data. It requires restructuring IT resources to get the full benefit of the cloud, including things like scalability, cost-efficiency and accessibility.
For Australian businesses, cloud migration services is a key step in modernisation. According to Kinetic IT’s report Cracking The Code To Cloud Migration Success, companies are moving to the cloud to reduce costs, strengthen disaster recovery, and boost agility.
This shift is already happening. Flexera’s 2024 State of the Cloud Report shows that 51% of workloads and half of all data now reside in the public cloud.
It’s obvious what’s driving businesses to make the move: they want to be more agile, cut costs and innovate faster. But as the report shows, there are a few hurdles along the way.
Benefits of Cloud Migration for SMEs

We’re seeing an increasing number of small and medium-sized enterprises (SMEs) in Australia turning to cloud computing to help them grow, work more efficiently, and stay competitive. According to Flexera, 61% of SME workloads and data are already in the cloud, proving its game-changing impact.
Here’s why cloud adoption is a smart move for SMEs:
- Cost Savings: You don’t have to worry about maintaining expensive on-premises data centres. With a pay-as-you-go model, businesses save on expensive on-premises data centres. Microsoft estimates 20-30% savings on virtual machine resources alone.
- Scalability & Flexibility: Cloud resources can scale up or down instantly, allowing businesses to adapt to demand without heavy upfront IT investments.
- Increased Efficiency: Automating routine tasks and simplifying IT management boosts productivity. The Kinetic IT report highlights how cloud migration significantly enhances business operations.
By leveraging the cloud, SMEs can compete with larger companies, cut costs, and drive efficiency. All without the burden of managing complex IT infrastructure. For a deeper dive, check out What is a Cloud Migration Strategy? Phases & Best Practices.
What are the 7 Types of Cloud Migration?

There’s no one-size-fits-all approach to cloud migration. Each organisation has different needs, so strategies have to be tailored to suit. Right, let’s take a look at each strategy in turn.
Rehosting
This is the simplest type of cloud migration, often called “lift and shift”. It basically means moving apps and data from your own servers to the cloud without making any big changes to the way they’re set up or written.
The best thing about rehosting is how quick and easy it is. That means organisations can save money and improve reliability pretty quickly.
The Microsoft guide, “Cloud Migration Simplified,” says one of the best ways for organisations to get started with cloud migration is to rehost.
Yes, it’s a quick way to start saving money.
Refactoring
Refactoring is a bit more than just rehosting. It uses cloud-native services to make apps run better, cheaper and more reliably.
This could mean making a few tweaks to the code or configuration to make the most of cloud-based databases, containerisation, or serverless computing.
The “Cloud Migration Simplified” guide shows how refactoring lets organisations update their apps without having to rewrite them from scratch. It’s a way to speed up innovation.
Rearchitecting
Rearchitecting is a more substantial change to applications. It usually means moving to a modular, microservices-based architecture – which is better suited to the cloud’s dynamic and scalable nature. This often means modifying or extending the application’s code.
While it’s more complex than rehosting or refactoring, rearchitecting helps organisations be more agile and use advanced cloud capabilities like AI and IoT, as the Microsoft guide explains.
Rebuilding
Rebuilding is the most radical migration strategy. It involves rebuilding applications from scratch using cloud-native technologies.
This approach is usually chosen when existing apps are out of date, inflexible, or holding back innovation.
It’s a big investment, but rebuilding gives you the chance to create modern, scalable, and future-proof applications to make the best use of the cloud.
Replacing
Replacing involves getting rid of the old apps and using cloud-based SaaS solutions instead. This approach is a great fit for applications you don’t consider a core part of your strategy, or where there are suitable SaaS alternatives.
It means you don’t have to worry about moving data and keeping everything up to date, so you can concentrate on what you do best.
Retiring
When you’re retiring, you need to identify and decommission applications which you no longer need. This is a big part of any cloud migration, as it helps cut costs and make things simpler.
The Microsoft guide says you should get rid of old assets if you want to make the most of cloud migration in terms of cost savings.
Retaining
Retaining means keeping certain apps on-site, usually because of technical, regulatory, or business reasons. This is often part of a hybrid cloud approach, where organisations use both on-premises and cloud resources.
The Flexera report shows most companies are using a combination of public and private clouds, with 54% of respondents saying they have a hybrid cloud strategy.
How Does Cloud Migration Work?
So, what is cloud migration? To get the full picture, we needed to understand how it works.
Migrating to the cloud is a pretty complex process. It involves moving data, applications and IT resources from your current on-premises or legacy systems to the cloud. The migration process can be broken down into a few key stages:
- Assess Your IT Setup: Check which apps and systems can move easily, and see if any need changes or a full replacement.
- Prepare the Cloud Environment: Set up networking, security, and governance controls to ensure a smooth and secure transition.
- Thorough Preparation Is Key: Plan carefully, as 90% of the migration work happens during preparation, according to the Kinetic IT report.
- Build a Strong Cloud Foundation: Create a solid cloud setup to avoid issues and get the most value from cloud investments.
- Migrate Data and Applications: Transfer data and apps to the cloud while testing to make sure everything works properly.
- Final Cutover: Redirect all traffic to the cloud, ensuring minimal downtime and smooth business operations.
For point of view on Azure consultants, have a read of “Azure Migration Made Easy: How Azure Migration Consultant Avoid Pitfalls.”
Best Practices for Cloud Migration

A successful cloud migration goes beyond technical expertise. It requires a well-rounded strategy that includes leadership alignment, stakeholder involvement, and careful cost management. Here are some cloud migration best practices you can follow:
Secure Leadership & Stakeholder Buy-in
The Kinetic IT report shows us why it’s so important to get the leaders on board, get the stakeholders involved, and make sure we manage the change properly. These non-technical elements are often overlooked, but they’re essential for making sure everything goes smoothly and getting the most out of cloud adoption.
Choose the right cloud platform
There are several platform options you can choose from when moving to the cloud: AWS, Google Cloud, Microsoft Azure, and others. The key to choosing the right one is very simple: Match it to your business needs and budget.
Manage Costs Proactively
The Flexera report shows how public cloud spending often goes over budget by around 15%, with an estimated 27% of cloud spending wasted. To avoid getting a big bill out of the blue, organisations need to get ahead of costs by making sure they’re not paying for more resources than they need, using reserved instances where they can, and setting up automated policies to shut down idle workloads.
The report also points out how important it is to get to grips with FinOps, which is all about making sure you’re getting the best deal on your cloud costs.
Using Cloud Migration Services
If you find finding a platform and planning best practices to be complicated, using a cloud migration service provider is the way to go. Cloud providers offer a lot of different services, but it can be tricky to figure out which one is right for you.
A trusted partner can give you the expert advice you need to make the right decisions and avoid costly mistakes. The Kinetic IT report shows how cloud partners can help to fill the skills gap and make sure that organisations get the most out of their cloud investments.
Seamless Server
Migration to the Cloud
Interscale ensures a smooth and efficient migration, helping your company unlock the full potential of cloud technology.
In Closing
Moving your business to the cloud is a great way for SMEs to boost their competitiveness and make their operations more efficient. That said, it’s worth noting you’ll need to plan carefully, execute strategically and keep on optimising if you want to succeed.
So, what is cloud migration? It’s about how you implement best practices with Interscale to make the cloud work for you and get the benefits you’re looking for.