Opportunities, challenges and strategies for a successful transition
The digital transformation is in full swing, and migration to the cloud is becoming increasingly important for small and medium-sized enterprises (SMEs). Own data centers from Managed Service Providers in the SME sector increasingly as a shortage of skilled workers and the relocation of SAP systems to the cloud are making operations more difficult. But what are the main challenges of cloud migration and what strategies can SMEs use to successfully migrate to the cloud and increase their competitiveness?
The advantages of cloud migration for SMEs
Cloud migration to the private cloud of a managed service provider (MSP) offers SMEs a number of advantages. One of the most important is the cost efficiency. Compared to on-premise solutions, there are no high initial investments in hardware and infrastructure. Instead, companies only pay for the resources they actually use, which avoids unused capacity. Maintenance, updates and infrastructure management are handled by the cloud provider, which further reduces internal IT costs.
Another decisive advantage is the scalability and flexibility. Cloud solutions enable SMEs to quickly adapt their IT resources to changing requirements, whether in the event of peak loads or growth. Data and applications are accessible worldwide, which is particularly beneficial for companies with distributed teams or international locations.
Agility and the ability to innovate also benefit from the cloud. Cloud providers regularly update their services so that companies can benefit from the latest technologies without having to invest in their own development efforts. New applications and functions can be implemented in the shortest possible time without having to wait for hardware investments.
Also Safety and reliability are important aspects. Cloud providers offer state-of-the-art security solutions such as automatic patches and data encryption. Data is stored geo-redundantly, which means it can be restored quickly in the event of a failure.
The reduced administrative effort and support for remote working are further advantages that increase the attractiveness of the cloud for SMEs.
Despite these numerous advantages, however, there are also challenges that SMEs need to consider when migrating to the cloud.
The challenges of cloud migration
Cloud migration is not an easy process and presents a number of challenges that need to be carefully planned and managed. The most important challenges include:
Security concerns and data protection
Many companies have concerns about unauthorized access to sensitive company data. Around 85% of companies express security concerns in connection with cloud computing, especially when talking about the public cloud of hyperscalers. In addition, the potential loss of data is a challenge for 60% of the companies surveyed. Compliance with data protection regulations such as GDPR and CCPA is also of great importance. (1)
Legal uncertainties
The unclear legal situation, particularly with regard to data protection, is another obstacle. Many companies that have not yet used public cloud services cite this as a reason. The storage of data in EU data centers is an important aspect here. (1)
Technical complexity
The migration and integration of existing systems into the cloud represents a technical hurdle. Many SMEs have legacy systems that cannot be easily transferred to the cloud. This requires careful planning and often the modernization or refactoring of existing applications. Compatibility issues, performance bottlenecks and latency problems can also occur. (2)
Operational risks
Service interruptions during migration, difficulties in integrating different cloud services and challenges with scalability and load testing are other operational risks that need to be considered.
Costs and resources
High initial investments, unexpected costs due to inadequate planning during “pay-as-you-go” times, costs for data withdrawals or the lack of qualified employees to manage the cloud infrastructure are also challenges that need to be overcome.
Strategic considerations
The risk of vendor lock-in, the need for a clear migration strategy and roadmap, and resistance to change in the corporate culture are strategic considerations that should not be neglected.
Strategies for a successful cloud migration
To overcome the challenges of cloud migration and make the most of the benefits, SMEs should develop a clear migration strategy and consider the following points:
- Careful planning: A comprehensive analysis of the existing IT infrastructure and business objectives is essential.
- Choosing the right cloud model: Private, public or hybrid cloud – the choice of the right model depends on the company’s specific requirements.
- Step-by-step migration: A step-by-step migration makes it possible to gain experience and minimize risks.
- Employee training: Employees need to be prepared for the new cloud technologies.
- Security measures: Implementation of security measures such as encryption, access controls and monitoring.
- Compliance: Ensuring compliance with data protection regulations and industry-specific regulations.
Support from partners such as FIS-ASP
Partners such as FIS-ASP can support SMEs with cloud migration in the following ways:
- Customized cloud solutions: FIS-ASP offers customized hybrid and multi-cloud solutions that are tailored to the specific requirements of companies.
- Comprehensive consulting: From analyzing workloads to developing the right technology, FIS-ASP supports companies in all steps of cloud migration.
- Security and compliance: With a private cloud solution, FIS-ASP addresses security concerns and provides a secure environment for business-critical data.
- Expertise in SAP systems: FIS-ASP has specialized experience with SAP solutions and can support companies in the migration and operation of SAP systems in the cloud.
- Flexible service models: FIS-ASP offers various service models, from Infrastructure-as-a-Service to Software-as-a-Service, to meet the different needs of companies.
- Automation and efficiency: By using technologies such as OpenStack, FIS-ASP enables automated and efficient provision of cloud resources.
FIS-ASP and its parent company FIS GmbH jointly offer comprehensive services for various cloud deployment models:
- On-Premise: Comprehensive support for your IT infrastructure in your own data center.
- IaaS (Infrastructure as a Service): Provision of IT infrastructure in the cloud, supported by hyperscalers such as AWS or Azure, as well as FIS-ASP services.
- SAP RISE Private Cloud:Special services for operating SAP systems in a private cloud environment, including hyperscaler services.
- SAP GROW Public Cloud:Support for the use of SAP systems in the public cloud, including SAP services.
Through this comprehensive support, partners such as FIS-ASP can help medium-sized companies to overcome the challenges of cloud migration and make the most of the benefits of cloud technology.
Conclusion
Cloud migration is an important step for SMEs to remain competitive and reap the benefits of digitalization. By planning carefully, considering the challenges and working with experienced partners, SMEs can successfully make the transition to the cloud and achieve their business goals.
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