According to Flexera’s State of the Cloud Report, 94% of enterprises are now leveraging the cloud, but over 60% cite migration as their biggest challenge. That figure isn’t surprising. As more organisations adopt cloud computing, the road to transformation is rarely smooth.
The cloud migration process involves more than just moving data. It means rethinking systems, workflows, and how digital assets are secured. There is no shortage of obstacles, from navigating complex cloud environments to addressing compliance obligations.
We will explore the most pressing cloud migration challenges, from maintaining data integrity to avoiding downtime, and provide practical strategies for handling them confidently.
With the right approach, businesses can unlock the full potential of cloud migration, achieving lasting benefits like better data management, improved resilience, and meaningful cost efficiency. The key is a roadmap tailored to your business, not a one-size-fits-all fix.
What Cloud Migration Involves
Cloud migration is the process of moving digital assets, such as applications, data and workflows, from on-premise or outdated legacy systems into modern cloud platforms. While it sounds straightforward, a successful migration requires careful planning and alignment with broader business objectives.
There are several approaches depending on the organisation’s needs:
- Lift-and-shift involves moving existing systems to the cloud with minimal changes. It’s fast but may not be ideal for performance tuning.
- Refactoring means modifying or rebuilding systems to fully leverage cloud-native features.
- Hybrid strategies combine both, allowing gradual transformation while maintaining critical functions on-site.
The migration process typically unfolds in stages:
- Assessment: Review of existing infrastructure, workloads and dependencies
- Planning: Development of a roadmap based on risk, cost, and technical requirements
- Pilot testing: Trial migration to validate compatibility and performance
- Full transition: Complete data migration, system deployment and go-live activities
Maintaining data integrity and security throughout the process is critical, particularly when handling sensitive data. Any compromise can impact business operations and erode trust.
Automation tools can simplify this journey by reducing manual tasks, identifying incompatibilities early, and helping teams stay on track.
With a strong cloud migration strategy, businesses are better positioned to minimise risk, maintain business continuity, and ensure a successful cloud migration, supporting efficiency, agility and long-term scalability through the right cloud service partner.
Common Cloud Migration Challenges to Prepare For
Moving to the cloud has clear advantages but comes with its share of roadblocks. Many organisations encounter common cloud migration challenges that can disrupt progress if not addressed early. Here’s what to look out for.
1. Legacy System Limitations
Outdated software and hardware often don’t integrate smoothly with modern cloud infrastructure. This mismatch can delay projects and demand additional workarounds or upgrades. A comprehensive cloud migration strategy should account for legacy compatibility from the outset.
2. Lack of Internal Expertise
Successful transitions rely on specialised cloud expertise. Without it, technical errors, security oversights, and workflow disruptions can occur. Many businesses need external support to guide their cloud migration journey.
3. Inadequate Planning
Rushing into migration without careful planning can lead to unexpected costs, missed deadlines and service interruptions. A successful cloud migration strategy starts with detailed scoping and risk analysis.
4. Downtime and Disruption Risks
Shifting core systems without safeguarding uptime can interrupt business operations. Failing to protect critical data during transfer is a common pitfall. Plans should include secure staging, rollbacks and continuous monitoring.
5. Unclear Cost Modelling
Without a strong grip on cost management, migration budgets can spiral. Overlooking storage limits, usage tiers, or data transfer fees may dilute cloud migration benefits and increase total expenditure.
6. Vendor Lock-in
Committing too heavily to one provider can limit future options and flexibility. It becomes harder to adapt or shift if business needs change. This issue is often missed in early planning.
7. Compliance Risks
Neglecting industry regulations during migration can lead to serious problems. Data location, retention rules, and data encryption standards must be reviewed before moving anything to the cloud.
These significant challenges are real, but they’re not dealbreakers. With a solid plan, the right support, and a clear focus on your goals, any business can embrace cloud migration and enjoy the long-term benefits that come with it.
Data Integrity and Security Risks in the Cloud
As businesses shift to cloud based systems, concerns around data security and data integrity take centre stage. For industries subject to regulatory compliance, any error in handling sensitive information can create legal, financial or reputational risks. These challenges are often underestimated during migration planning.
Maintaining Integrity During Transfer
Transferring data across cloud platforms or from existing infrastructure increases the risk of corruption, loss or duplication. Businesses need safeguards during every migration step to maintain data quality. These may include:
- Checksum validation to verify accuracy during transfers
- Encryption in transit to protect against unauthorised access
- Duplication control to prevent inconsistencies
- Backup systems that preserve the original structure of existing systems
Strengthening Cloud-Based Data Security
Security settings that worked in older environments often don’t suit the cloud. A migration effort should include new frameworks tailored to cloud service providers and scalable systems.
Important elements to build in:
- Role-based access control policies
- Advanced threat detection tools
- Continuous monitoring for suspicious activity
- Classification of data by sensitivity and importance
These additions help protect critical assets and support cloud migration success.
Role of a Data Management Plan
A strong data management plan aligns with broader business processes and sets standards for storing, accessing and sharing information. It reduces the risk of misplacement, unauthorised access or redundancy—especially during transitions.
A comprehensive migration strategy should always include data governance. It enhances security, improves efficiency, and often leads to cost savings while delivering valuable insights into how information flows within your business.
Navigating Security and Regulatory Compliance
As businesses migrate to cloud technology, the regulatory landscape becomes more complex. Storing, accessing, and auditing data in the cloud introduces new layers of responsibility, particularly around data management, security vulnerabilities, and transparency. Organisations must ensure a smooth transition without compromising compliance with local and international standards.
Regional Laws and Industry Standards
Australia’s compliance environment spans multiple sectors, including financial services, privacy, and cybersecurity. The Privacy Act 1988 and the updated Privacy Act Amendment Act 2024 mandate strict data privacy protocols, with penalties reaching AUD $50 million for serious breaches. Organisations must:
- Clearly disclose how data is collected, used and stored
- Maintain secure systems for storing personal data
- Report serious data breaches through the Notifiable Data Breaches (NDB) scheme
The Cyber Security Act 2024 introduces mandatory ransomware reporting and baseline security for consumer IoT devices. Frameworks such as the Essential Eight promote cyber resilience through:
- Multi-factor authentication
- Regular patching of software
- Restricting admin access
- Routine data backups
Industries such as finance are subject to APRA’s CPS 234 and ASIC’s RG 247, which focus on data residency, robust security measures, and operational efficiency. For payment data, PCI DSS sets encryption and assessment standards.
Multi-Layered Security Protocols
In cloud environments, security is a shared responsibility. While cloud service providers secure the infrastructure, businesses must safeguard access and usage. This includes:
- Configuring identity and access controls
- Encrypting data during storage and transmission
- Ensuring seamless integration with security tools and policies
- Monitoring for threats through content delivery networks and advanced logging
Without proper controls, migrating legacy applications increases the risk of data loss. A well-structured compliance program helps businesses manage risk, avoid penalties, and maintain trust during and after migration.
Staying current with regulations, updating internal policies, and investing in staff training are essential steps toward long-term compliance and a secure move to the cloud.
Building a Cloud Migration Strategy That Works
A strong strategy makes all the difference when facing the complexities of a cloud transition. Careful planning helps avoid disruptions, improves cost efficiency and supports long-term success.
1. Assessing Existing Infrastructure
A full assessment of current systems lays the groundwork for effective migration. This involves auditing:
- IT assets, including storage and compute resources
- Network performance and potential bottlenecks
- Software licences and versioning
- Third-party integrations and dependencies
Without a proper audit, legacy issues can pose significant challenges later.
2. Prioritising Workloads and Phasing Migration
Not all workloads need to move at once. Some systems are easier to migrate, while others require extra testing. Phasing allows teams to build experience and confidence early.
- Identify workloads with fewer dependencies for initial migration
- Group applications based on usage and criticality
- Test small batches before scaling up
- Monitor each phase to guide the next step
This method protects performance and reduces risk during the early stages of adopting new cloud architectures.
3. Planning for Operational Continuity
Disruptions can be costly. A well-planned approach ensures that services remain available throughout the process.
Key elements include:
- Failover systems keep operations running during switchover
- Real-time data replication to maintain consistency
- Application sandboxing to test environments safely
Including cloud monitoring tools at this stage helps detect issues quickly and supports smooth execution. This strategic planning ensures agility while preserving operational continuity, which is essential for maintaining trust and momentum during migration.
Balancing Cost Efficiency with Migration Success
Cloud migration offers significant potential for cost efficiency, but only when resources are aligned with actual business needs. A thoughtful approach helps prevent overspending and ensures businesses retain the functionality and security they require.
1. Avoiding Overprovisioning
One of the most common mistakes is allocating more storage, processing power or services than necessary. Overestimating demand leads to ongoing expenses that don’t reflect real usage. Understanding current system loads and future growth helps set realistic targets before moving to the cloud.
2. Pay-as-You-Go Models
Unlike traditional infrastructure, cloud platforms often operate on flexible, usage-based billing. The pay-as-you-go model allows businesses to scale services as needed, paying only for what they actually use. This improves budget control and reduces waste, particularly for seasonal or fluctuating workloads. Real-time tracking also enables teams to spot unexpected increases early.
3. Rightsizing and Resource Optimisation
Cloud environments are highly customisable. Ongoing audits help businesses adjust compute and storage based on current activity. Monitoring tools provide insight into usage patterns, making it easier to eliminate underused services or reassign them elsewhere. This ensures that resources always match the needs of the business, improving financial efficiency while keeping systems responsive and secure.
The Benefits of Cloud Migration Beyond IT
Cloud migration delivers more than technical upgrades; it creates real value across the business landscape, improving operations, team dynamics and customer outcomes.
1. Speed and Agility
Services and updates deploy faster, allowing businesses to react quickly to changing markets and customer expectations.
2. Enhanced Collaboration
Cloud platforms improve communication with remote access, shared workspaces and real-time file updates, which are essential for modern teams.
3. Scalability Without Complexity
Resources adjust as needed without the delays or costs of physical infrastructure, supporting growth with less friction.
4. Business Continuity
With built-in backups and failover systems, cloud environments reduce downtime and keep operations steady during disruptions.
5. Innovation Enablement
Access to advanced tools, automation and real-time analytics empowers teams to experiment, iterate and stay ahead of competitors.
These benefits extend beyond cost savings, influencing productivity, resilience and the ability to innovate across the organisation.
Your Migration Partner for a Secure, Seamless Cloud Experience
Moving to the cloud is a major step, and getting it right takes more than determination. It takes deep technical knowledge, structured planning, and a team that understands every challenge.
At Datcom, we work closely with Australian businesses to guide every phase of the cloud migration journey. Whether you’re navigating legacy systems, addressing compliance requirements or managing complex environments, we develop clear strategies that protect your data and keep your operations running smoothly.
Our services are designed to match your business goals and ensure a seamless transition to the cloud without disrupting day-to-day performance.
Contact us today to discover how we can support your migration and help drive long-term success in the cloud.