Top 10 Cloud Migration Risks in 2024

Organizations increasingly rely on cloud computing services for their scalability, flexibility, cost-efficiency, and ease of deployment. As a result, the cloud migration market is projected to grow from USD 232.51 billion in 2024 to USD 806.41 billion by 2029, with a CAGR of 28.24%. Despite the advantages over on-premise data centers, cloud migration presents certain risks that need careful consideration.

This article examines the benefits of cloud migration. Additionally, it outlines ten key cloud migrations risks and cloud migration best practices to mitigate them, providing insights for businesses planning to move to the cloud.

Benefits of migrating to the cloud

DigitalOcean’s 2022 Currents research, surveying 554 founders, CEOs, and executives at startups and small businesses, over 70% of them highlighted that cloud migration is a strategic move to reduce costs. Here are some of the key benefits of migrating to the cloud:

1. Cost efficiency

Cloud migration offers organizations a cost-effective solution. By moving to the cloud, companies can avoid the substantial upfront investments associated with on-premise hardware. Additionally, operational costs, such as energy expenditures for system maintenance, become more manageable. The cloud provider handles hardware maintenance, allowing companies to pay only for the resources they use.

2. Resource scalability

On-premise infrastructure often encounters capacity limitations. Cloud technology eliminates these issues by providing businesses with on-demand capacity through a pay-as-you-go model. This flexibility ensures that fluctuations in traffic or development do not disrupt operations. Unlike traditional infrastructure, which requires purchasing new servers to handle increased traffic, cloud services allow businesses to adjust storage, computing power, and bandwidth as needed.

3. Improved security

Migrating to the cloud often improves security measures for organizations. Cloud service providers implement rigorous security protocols such as Cloud Security Posture Management (CSPM) to protect client data. These providers employ top-tier cybersecurity professionals to continuously improve security best practices. Leading data centers and cloud providers worldwide help ensure that client data is safeguarded with both digital and physical security measures, creating a secure environment for critical business information.

4. Employee flexibility

The cloud provides employees with greater flexibility, allowing organizations to hire n remote employees. Many employees prefer to work remotely rather than return to the office (RTO) as organizations strive to maintain productivity and collaboration. Cloud technology makes this possible. Employees can access, edit, and update documents in real time, enhancing productivity and efficiency. With an internet connection and a compatible device, employees can access work-related resources from anywhere, creating a more adaptable workforce.

6. Disaster recovery

Cloud migration enhances an organization’s disaster recovery capabilities. Cloud-based backups are often more secure than traditional internal backups. By storing data in secure data centers operated by leading technology companies, businesses ensure their information is protected by dedicated security teams working around the clock. In the event of a natural disaster or system failure, these cloud-based backups facilitate swift data recovery, minimizing downtime and data loss.

10 cloud migration risks to look out for

Despite the range of benefits of moving to the cloud, organizations transitioning their systems and data to the cloud may encounter a range of challenges. Here are 10 cloud migration risks to look out for and strategies to address them effectively:

1. Infrastructure compatibility

A challenge in cloud migration is ensuring that existing infrastructure and applications are compatible with the target cloud environment. This issue affects organizations moving from self-hosting to other cloud providers or adopting a multi-cloud strategy. Legacy systems, custom applications, and third-party software often lack cloud readiness, leading to compatibility and dependency issues that complicate the migration process.

Organizations should thoroughly assess their current infrastructure and applications before migrating to tackle this. This assessment includes:

• Evaluating the existing infrastructure and software to identify potential incompatibilities, dependencies, and complexities that could impede the migration process.

• Determining the appropriate migration strategy based on the assessment results. Different organizations have unique needs, workloads, and setups, requiring tailored approaches such as lift-and-shift, refactoring, or re-architecting applications for the cloud.

Conducting a detailed readiness assessment can help organizations plan effectively, minimize disruptions, and ensure a smoother transition to the cloud.

2. Cloud cost management

Optimizing cloud costs and understanding the pricing structures of cloud service providers can present a challenge during cloud migration. Hyperscaler cloud providers often have complex pricing models with hidden fees for data egress, storage, and other services, making it difficult to estimate and predict cloud expenses accurately. Inefficient resource allocation, like overprovisioning or underutilizing cloud resources, leads to unnecessary costs.

However, with proper monitoring and cloud cost management tools, organizations can gain visibility into their cloud spending, identifying cost-saving opportunities.

To alleviate cloud migration risks, organizations should use the tools provided by cloud vendors to gain detailed insights into cloud expenditures and identify areas for optimization. Best practices for cloud cost management include:

• Rightsizing instances to match actual usage needs.

• Leveraging reserved or spot instances to reduce costs.

• Automating resource scaling based on demand to avoid overprovisioning.

Continuous cloud monitoring and analysis of cloud metrics and usage patterns are crucial for making data-driven decisions and identifying cost optimization areas. Additionally, promoting a culture of cost-awareness within the organization ensures teams understand the financial implications of their cloud resource usage, encouraging cost-effective practices.

3. ​​Security and compliance

Ensuring data security and regulatory compliance during cloud migration is key. The transition can introduce new vulnerabilities and require adherence to stringent security standards. Failure to meet these standards can result in data breaches, regulatory fines, and reputational damage. Organizations should implement robust access controls, encryption, and cloud compliance practices.

Evaluating the cloud provider’s security protocols, data protection policies, and certifications is essential to cloud migration security. Implementing best practices and using monitoring tools help maintain vigilance against threats. Regular security audits, incident response planning, and continuous employee training strengthen data security and compliance during (and after) cloud migration.

4. Cloud architecture design

Designing a functioning cloud architecture is a critical aspect of cloud migration. Organizations must make strategic decisions to ensure optimal performance, cost-efficiency, and scalability. This includes choosing the right cloud service provider and ensuring compatibility and integration with existing systems.

Invest in thorough planning and design to circumvent this challenge, including assessing workloads, performance requirements, and scalability needs. Collaboration with cloud experts and service providers can result in tailored solutions that align with your business objectives.

5. Application compatibility

Cloud migration often reveals compatibility issues with existing applications. Monolithic architectures, coupled dependencies and reliance on specific configurations can hinder the transition, and legacy applications may not fully utilize the cloud’s scalability and cost-efficiency.

To address these issues, application modernization and refactoring must be undertaken. This involves decoupling monolithic applications into manageable components and restructuring code for clarity. Containerization and microservices architectures facilitate consistent deployment and independent scaling.

Utilizing cloud-native services, such as serverless computing and managed databases, enhances application functionality and performance. Modernizing applications allows organizations to use the cloud, improve efficiency, and deliver better user experiences.

6. Data migration and integration

Transferring data to the cloud can be a complex process that requires careful execution to avoid serious issues. Even minor errors during data migration can lead to significant problems, including data corruption, inconsistencies, and potential security vulnerabilities. These issues can compromise the integrity of data analysis and decision-making, leading to operational inefficiencies and compliance risks.

To prevent this during the cloud migration process, rigorous data validation and error-checking mechanisms must be employed to manage these risks. Establishing comprehensive backup systems is also essential to protect data integrity. In hybrid cloud setups, where some systems remain on-premises while others move to the cloud, seamless integration is critical. Ensure secure, reliable connectivity between cloud and on-premises systems to maintain data synchronization and integrity. Effective data management during migration helps to maintain business operations and harness the full benefits of cloud-based analytics and decision-making tools.

7. Network performance and connectivity

Cloud services rely heavily on network performance, making network-related issues a major concern. Latency and bandwidth limitations can impact the performance of cloud-based applications, particularly those that require real-time data processing or high data throughput, such as video streaming or online gaming. The distributed nature of cloud environments can exacerbate these issues, as data must travel across diverse geographic locations and network nodes.

To mitigate these challenges, optimize your network infrastructure to handle increased data traffic efficiently. Implementing strategies such as using Content Delivery Networks (CDNs) or placing cloud resources closer to end-users can help reduce latency. Ensuring robust connectivity between cloud environments and on-premises systems is also crucial for maintaining seamless data flow and security. Evaluate your network capacity and performance to prevent bottlenecks and ensure that your infrastructure supports the demands of cloud-based operations.

8. Organizational change and employee training

The shift to cloud technologies often involves more than just technical changes; it requires a cultural shift within your organization. Adopting cloud solutions can disrupt established workflows and processes, and resistance to these changes can hinder the migration process.

Invest in targeted training and development programs to effectively manage this transition and equip employees with the necessary skills and knowledge. Foster a culture that embraces change, agility, and continuous learning l. Encouraging collaboration across teams and supporting experimentation can ease the adoption of new technologies. Recognizing and celebrating progress can also drive enthusiasm and buy-in, helping employees adapt to the new cloud environment and fully leverage its benefits.

9. Implementing cloud governance

Migrating to the cloud introduces governance challenges, particularly in maintaining standards, regulatory compliance, and risk management. Clear roles and responsibilities are essential to prevent chaotic cloud resource management, which can lead to security risks, compliance violations, and unnecessary costs. Without proper approval workflows and budgetary controls, teams may indiscriminately provision and consume cloud resources, resulting in cost overruns and compliance issues. Inconsistent policies for resource provisioning, data retention, and security can also create vulnerabilities and inefficiencies.

To address these challenges, define clear roles for cloud resource management, security, and compliance. Consider implementing approval workflows and budgetary controls to ensure that cloud resource use aligns with your organizational priorities. Standardized policies for provisioning, data retention, and security protocols will help with consistency and risk mitigation. Effective cloud governance helps manage risks, ensures compliance, and controls cloud environments.

10. Cloud monitoring and incident management

Cloud-based infrastructure introduces complexities in monitoring and incident management due to its dynamic and distributed nature, as well as the increased reliance on third-party cloud providers. Maintaining visibility and control over the entire IT ecosystem can be challenging without a robust cloud monitoring and logging strategy, making it difficult to detect security threats and service disruptions.

Implementing comprehensive cloud monitoring and logging solutions provides real-time visibility into application performance, resource usage, and potential security threats. Analyzing log data enables proactive issue identification and resolution, ensuring continuous availability and optimal performance. Developing strong security incident response and disaster recovery plans is essential for minimizing downtime and mitigating incident impacts. These plans should outline clear communication protocols, roles, and procedures for incident resolution and data recovery.

Tracking key cloud metrics allows your organization to identify potential issues early, implement preventive measures, and respond swiftly to incidents, ensuring cloud systems remain highly available and performant.

Migrate to DigitalOcean for your cloud infrastructure needs

Join the developers, startups, and SMBs who rely on DigitalOcean’s dynamic and cost-effective cloud infrastructure. Whether you’re looking for cost savings, improved scalability, or greater efficiency, migrating to DigitalOcean could be the right move for your business. Here’s why:

• Flexible and scalable infrastructure. DigitalOcean provides a range of services that can grow with your business, including Droplets, Kubernetes, and various storage and networking options.

• Transparent pricing and cost-efficient offerings. Compared to major cloud service providers, DigitalOcean offers a simplified pricing structure, helping you predict your expenses and manage your budget more effectively.

• User-friendly interface. Navigating through your cloud infrastructure has never been easier with DigitalOcean’s intuitive interface. Manage your resources without a steep learning curve.

• Robust security. DigitalOcean implements advanced security features and protocols that can help protect your business from potential threats.

• 24/7 support and comprehensive documentation. DigitalOcean provides round-the-clock customer support to address your technical queries and concerns. For further learning and understanding, you can delve into our extensive library of documentation, tutorials, and community resources.

• Migration support. DigitalOcean partners with cloud migration experts like CTO.ai, Slower.ai, Crafty Penguins, Stack, Webbar, and GlobalDots to support startups who are considering cloud migration. These partners can provide you with the tools and expertise necessary to migrate your cloud infrastructure successfully.

“Our hosting costs have decreased by over 90% and we’re running at about 25% of our capacity allowing us to quickly scale.” - Jamie Druce, Senior Web Developer, Content Ignite.

Take the leap to DigitalOcean for your cloud infrastructure needs. With our robust services and dedicated support, your startup or SMB can achieve its technical and business goals. Learn more about migration and speak to a migration expert today.