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Challenges of moving from Data Centre to Cloud: Best practices
Insights 6 minutes read

Challenges of moving from Data Centre to Cloud: Best practices

Did you know that over 70% of organisations worldwide are migrating their critical workloads to the cloud, marking one of the most transformative shifts in IT today. Yet, for many companies, the journey from on-premise infrastructure to the cloud is filled with challenges—from data security to managing costs and skill gaps.

For those willing to navigate these hurdles, cloud migration offers remarkable rewards: increased flexibility, streamlined IT management, and cost efficiencies that can free up resources for innovation.

In this article, we’ll unpack the common challenges in cloud migration and share best practices to overcome them, highlighting how Interactive – in collaboration with Microsoft – can help make your transition seamless and secure.

 

The shift from data centre to cloud

Certainly, migrating from data centre to cloud is more than just a tech trend; it’s a strategic move that promises agility, scalability, and a foundation for innovation. Companies that plan carefully can leverage the cloud to achieve new heights in performance and efficiency.

However, it’s not without its hurdles.

But first, let’s consider the numbers: In Australia, cloud adoption has surged, with over 60% of businesses already running critical workloads in the cloud, according to ADAPT.

By 2025, it’s forecasted that 55% of Australian workloads will be hosted on public clouds, driven by the need for scalability, support for remote work, and flexible pricing.

Globally, Gartner predicts that by 2028, cloud will be essential for maintaining competitiveness. IT spending on public cloud services reflects this shift, projected to reach $679 billion in 2024 and exceed $1 trillion by 2027.

 

"Organisations are actively investing in cloud technology due to its potential to foster innovation, create market disruptions, and enhance customer retention in order to gain a competitive edge." Milind Govekar, Distinguished VP Analyst at Gartner.

Govekar continues by saying  “While many organisations have started to seize the technical advantages of cloud, only a few have unlocked its full potential in supporting business transformation. As a result, organisations are using the cloud to launch a new wave of disruption driven by artificial intelligence (AI), enabling them to unlock business value at scale.”

So, why is this shift happening? Broadly speaking, the cloud offers unmatched scalability, cost control, and improved collaboration. By eliminating on-premise data centres, companies can free up resources to innovate, improve time-to-market, and streamline IT management.

From a cost perspective alone, migrating to the cloud canreduces expenses by eliminating the need for costly on-premise hardware and lowering maintenance demands. With a pay-as-you-go model, businesses can scale usage based on demand, avoiding overspending on unused resources and unlocking capital for other strategic investments.

More than just an option, the cloud has become a strategic necessity to stay competitive in today’s rapidly evolving digital landscape.

But these advantages also come with unique challenges that require thoughtful planning.
So, let’s ask a few questions: namely:

 

Is cloud migration difficult?

The real answer? Yes and no. While moving to the cloud can be straightforward, it often involves complex processes, especially when dealing with legacy systems, sensitive data, and compliance requirements. Every business has different needs, and a one-size-fits-all approach won’t work. A tailored migration strategy and a solid roadmap can make all the difference.

 

Key challenges in cloud migration

Data security & compliance

Security is a top concern for organisations considering cloud migration. Businesses must ensure that sensitive data is securely transferred and stored in compliance with regulatory standards. Failure to do so can result in costly breaches or penalties. Choosing a provider with a robust security framework, like Interactive, can help mitigate these risks and provide peace of mind.

Downtime & business continuity

Downtime during migration can disrupt operations and affect the bottom line. A structured migration plan helps reduce interruptions, but downtime can’t always be avoided. The goal is to minimise it as much as possible and ensure business continuity. For example, implementing a staged approach can allow critical functions to remain operational during the transition.

Cost management

Budgeting for cloud migration can be challenging. While cloud can be more cost-effective than maintaining on-premise infrastructure, unexpected expenses can arise. According to the ADAPT Cloud Migration Study 2024: Time for a Reality Check, over 40% of businesses find cloud cost management complex. By carefully monitoring usage and aligning cloud resources with business needs, companies can optimise their budgets and avoid overspending.

Skill gaps

Cloud migration requires specialised skills in areas like data management, security, and architecture. Many organisations face talent gaps, making it difficult to carry out a smooth migration. Upskilling teams or working with expert providers like Interactive can help businesses close these gaps and ensure a successful migration.

 

Data centre to cloud: Best practices for a successful migration

Develop a comprehensive strategy

Starting with a clear migration strategy is crucial. This includes defining goals, setting a project scope, and establishing milestones. Taking time upfront to develop a roadmap allows businesses to anticipate potential challenges, manage resources, and ensure alignment with broader business objectives.

Prioritise security measures

Robust security practices are essential to protecting your data. Implementing strong access controls, encryption, and regular audits can safeguard data throughout the migration process. By working with a cloud provider that prioritises security from the outset, businesses can avoid potential breaches and protect sensitive information.

Choose a phased approach

A phased migration reduces the risk of disruption and allows companies to adapt to new processes gradually. This step-by-step approach enables businesses to test the waters, refine processes, and build confidence as they transition to the cloud. It also minimises downtime, helping to maintain business continuity.

Upskill teams or hire experts

Investing in training or hiring cloud specialists can bridge skill gaps and ensure the migration is managed effectively. Skilled professionals bring invaluable expertise in data management, security protocols, and cloud architecture, making the transition smoother and more reliable.

Review and revise

Cloud migration isn’t a one-and-done process. After each phase, it’s essential to review the results, identify improvements, and refine the next steps. Regularly reassessing progress and adapting to new insights will keep the project on track and ensure the business maximises its cloud investment.

How Microsoft aligns with Interactive’s Cloud solutions

Microsoft Azure is a leading cloud platform that provides flexible solutions for businesses looking to move to the cloud, and Interactive has a strong partnership with Microsoft to support seamless migrations. With features like Azure Arc for managing hybrid environments and advanced security capabilities, Azure complements Interactive’s expertise in end-to-end IT services, making it a natural choice for companies aiming for a smooth, secure cloud transition.

 

Let Interactive help you transition to the cloud

Interactive has extensive experience helping businesses navigate cloud migration challenges, from security and compliance to cost management and skill gaps. Our approach is comprehensive, ensuring your migration is planned, phased, and secure. With a dedicated team and partnerships with leading cloud providers, Interactive delivers seamless cloud transitions designed for today’s dynamic business environment.

Ready to take your next step toward the cloud? Explore Interactive’s Cloud Services for more insights, or reach out to discuss your migration goals.

 

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