Cloud Migration Strategy: Process, Examples, and Benefits

Migrating to the cloud is an opportunity to rethink how your business operates and delivers value. It’s not just about moving applications and data to a new environment; it’s a chance to streamline processes, modernize infrastructure, and position your organization for future growth. 

By aligning the migration with clear business objectives and planning each stage with precision, you can improve scalability, reduce operational costs, and gain faster access to innovative technologies that drive competitive advantage. A strategic cloud migration transforms the process from a technical exercise into a business initiative that supports agility, resilience, and long-term success.

What is a cloud migration strategy? 

Amazon Web Services defines cloud migration as “the process where you move digital assets like data, applications, and IT resources to the cloud.”

A cloud migration strategy is a structured plan that outlines how an organization moves its data, applications, and workloads from on-premises infrastructure to a cloud environment. It defines the approach, timeline, tools, and resources needed to ensure the transition is efficient, secure, and aligned with business goals. 

A well-designed strategy considers factors such as compliance requirements, cost optimization, performance needs, and potential downtime during the move. By mapping out each stage of the migration process, organizations can reduce risks, avoid disruptions, and maximize the benefits of cloud technologies, such as scalability, flexibility, and improved collaboration.

What does a cloud migration process look like? 

A successful cloud migration starts long before any data is moved. It requires a clear business case, careful planning, and the right execution strategy to ensure a smooth transition with minimal disruption. While every migration is unique, most organizations follow a similar journey that moves from preparation through to optimization.

1. Prepare

The first step is to define why you’re migrating to the cloud and what success will look like. Are you aiming for greater scalability, improved performance, cost savings, or enhanced agility? Once the objectives are clear, assess your current IT environment to understand what resources you have, how they are being used, and which workloads are best suited for migration. This is also the time to evaluate your team’s cloud readiness—identifying any skills, tools, or security capabilities that need to be developed before the data migration begins. Thorough preparation helps set realistic expectations and builds the foundation for a successful move.

2. Plan

With your goals and readiness established, you can create a detailed migration plan. This should outline which workloads will be moved, in what order, and whether each will be rehosted, replatformed, refactored, or replaced. Decide on your preferred cloud model—public, private, hybrid, or multi-cloud—and address compliance or security considerations early. A solid plan also includes defining data migration priorities, ensuring business-critical data is handled with care, and scheduling migrations in a way that minimizes downtime for end users.

3. Migrate

This is where your plan turns into action. The migration phase involves moving applications, data, and workloads to the cloud using the strategies you’ve chosen. Throughout this process, monitoring is essential. You’ll want to track progress, address any issues immediately, and verify that each workload performs correctly in its new environment before moving on to the next. Data synchronization and backup procedures should be in place to prevent data loss and maintain business continuity during the transition.

4. Operate

Once workloads are in the cloud, the focus shifts to ensuring they run smoothly and securely. This involves monitoring performance, managing resources effectively, and maintaining compliance with industry regulations. Teams should be ready to adjust configurations, allocate resources differently, or fine-tune security settings based on early feedback from the live environment. A proactive approach in this stage helps prevent small issues from becoming larger operational problems.

5. Optimize

Cloud migration doesn’t end when the last workload is moved. The optimization phase is ongoing, as organizations continually look for ways to improve performance, control costs, and leverage new cloud-native capabilities. This might mean automating workflows, rightsizing resources to avoid overpaying, or adopting new services that add value. The organizations that get the most from the cloud are those that treat optimization as a continuous process.

By approaching cloud migration as a strategic, phased journey rather than a single project, companies can reduce risk, control costs, and ensure that their new environment delivers lasting business value.

How cloud migration strategies work 

When moving applications and workloads to the cloud, choosing the right migration approach is key to balancing cost, speed, and long-term value. While there’s no single “best” method, most cloud migrations follow one of several proven approaches, often referred to as the “7 Rs” of cloud migration. Each has its own trade-offs in terms of cost, complexity, and future flexibility, and the right choice often depends on the application’s current state, business goals, and regulatory requirements.

1. Rehosting (lift and shift)

Rehosting is the most straightforward migration method: you move an existing application to the cloud without making changes to its code or architecture. This “lift and shift” approach is often the fastest and least expensive option in the short term, making it attractive for organizations that want to migrate quickly, prove cloud value, or free up on-premises infrastructure. It works well for applications that don’t need immediate modernization but could benefit from the scalability, reliability, and availability of cloud hosting. However, because it doesn’t take advantage of many cloud-native features, rehosting may deliver limited long-term optimization unless paired with later improvements.

2. Replatforming (lift and reshape)

Replatforming is similar to rehosting but includes modest changes that make better use of cloud capabilities. You keep the core application architecture intact but introduce optimizations—such as upgrading the operating system, switching to managed database services, or enabling autoscaling—to improve performance, cost efficiency, or maintainability. This approach strikes a balance between speed and improvement, allowing you to gain some cloud benefits without the expense and disruption of a full rebuild.

3. Repurchasing

Repurchasing means moving away from an existing application altogether and adopting a new, cloud-native solution. While this can mean losing certain custom features and retraining staff, it’s often the most cost-effective way to replace outdated, inflexible systems with modern, scalable tools. Repurchasing can significantly shorten implementation timelines compared to rebuilding, and SaaS solutions often come with built-in security, compliance, and maintenance benefits.

4. Refactoring (re-architecting)

Refactoring is the most complex and resource-intensive migration strategy, involving a complete overhaul of an application’s architecture to take full advantage of cloud-native features. This may include breaking monolithic applications into microservices, enabling serverless computing, or adding advanced automation and scaling capabilities. While refactoring has the highest upfront cost, it offers the most long-term value by creating applications that are more agile, scalable, and maintainable in a cloud environment. This approach is best suited for applications that are critical to the business and would benefit significantly from modernization.

5. Relocating

Relocating involves moving workloads to the cloud at the infrastructure level, often using virtualization tools to transfer entire environments with minimal changes. This is particularly useful for organizations using hypervisor-based systems, which can be mirrored in cloud platforms. Relocating can be faster and simpler than rehosting or replatforming because it doesn’t require extensive reconfiguration, making it ideal for moving large numbers of workloads quickly while preserving existing infrastructure management tools and processes.

6. Retiring

Retiring is the process of identifying and shutting down applications or services that are no longer needed. This step often emerges from an application portfolio assessment, where it becomes clear that some workloads no longer deliver value or have been replaced by other systems. Retiring unused or redundant applications reduces operational complexity, frees budget, and can simplify the migration process.

7. Retaining

In some cases, it makes sense to keep applications in their current on-premises environment, either temporarily or indefinitely. Reasons for retaining workloads include compliance requirements that prevent certain data from leaving a specific jurisdiction, recent upgrades that make migration unnecessary in the short term, or a lack of a compelling business case for moving the application. Retaining doesn’t mean the workload is ignored—it’s monitored and revisited periodically to determine whether conditions have changed to make cloud migration viable.

Most organizations don’t choose just one of these strategies. They use a combination across different workloads, depending on business priorities, timelines, and technical constraints. The key is to evaluate each application or service individually, weigh the benefits and trade-offs of each approach, and create a migration plan that balances immediate needs with long-term goals. The right strategy not only moves workloads to the cloud but sets them up for sustained success once they’re there.

If you’re not sure which strategy to choose, Gartner has an excellent guide for choosing cloud migration strategies. 

Benefits of having a cloud migration strategy

Migrating to the cloud can unlock major operational and financial advantages, but without a clear plan, it’s easy to encounter delays, cost overruns, or performance issues. A well-defined cloud migration strategy gives organizations a structured roadmap for success, aligning technology changes with business goals and ensuring that every step adds value. Here are some of the key benefits.

Clear alignment with business objectives

A cloud migration strategy ensures that every decision—from choosing a cloud model to selecting migration methods—is tied directly to business priorities. Whether your goal is to improve scalability, reduce costs, enhance security, or drive innovation, a strategy keeps efforts focused on measurable outcomes. This alignment also makes it easier to secure executive buy-in and justify the investment, as you can demonstrate how the migration supports the organization’s overall vision.

Reduced risk and downtime

Cloud migrations can be complex, especially for organizations with legacy systems or sensitive data. A defined strategy helps identify potential risks early, such as compliance issues, application incompatibilities, or data transfer bottlenecks. By anticipating these challenges, you can put mitigation measures in place, schedule migrations to minimize user disruption, and ensure that critical services remain available during the transition. The result is a smoother migration with fewer unexpected setbacks.

Optimized resource use

Without a plan, it’s easy to overprovision cloud resources or pay for services you don’t actually need. A migration strategy includes assessing your current workloads, estimating future capacity requirements, and selecting the most cost-effective options. This prevents overspending while ensuring you have the performance and scalability your business requires. Optimizing resources from the outset also lays the groundwork for ongoing cost management once you’re operating in the cloud. You’ll also get optimized use of your own data with better data integration in the cloud. 

Improved security and compliance

Security and compliance requirements don’t pause during a migration; in fact, they become even more critical. As the Cyber Security Alliance points out, a cloud migration strategy addresses these needs upfront, detailing how data will be protected in transit and at rest, how user access will be managed, and how regulatory obligations like GDPR or HIPAA will be met. By building security and compliance into the migration plan rather than treating them as afterthoughts, you reduce the likelihood of breaches, fines, or reputational damage.

Faster adoption of cloud benefits

Organizations with a solid migration plan are able to realize the benefits of the cloud sooner. This is because a strategy streamlines decision-making, eliminates trial-and-error approaches, and prioritizes the workloads that will deliver the most value early in the process. Whether it’s faster deployment of applications, improved collaboration tools, or more flexible infrastructure, a strategy accelerates time-to-value and sets the stage for ongoing innovation.

A foundation for continuous improvement

Cloud migration is not a one-time event but the start of an evolving journey. A strategy doesn’t just cover the move itself; it also includes plans for post-migration monitoring, optimization, and scaling. This continuous improvement mindset helps organizations adapt to changing business needs, adopt new technologies, and get the most from their investment over the long term.

Best practices for strategic cloud migration

A cloud migration is more than just moving data and applications—it’s an opportunity to improve efficiency, scalability, and resilience across your business. To get the most from the process, organizations should follow proven best practices that reduce risk, control costs, and maximize long-term value.

Start with a clear business case

Before any technical work begins, define why you’re migrating and what you hope to achieve. Set measurable goals, such as lowering infrastructure costs, improving application performance, or enabling faster product launches. This clarity helps keep the migration aligned with your business strategy and provides a benchmark for measuring success.

Assess and prioritize workloads

Not every workload should move to the cloud at the same time—or at all. Conduct a thorough assessment of your applications, data, and infrastructure to determine which are the best candidates for migration. Prioritize based on factors such as business value, complexity, compliance requirements, and potential for optimization in the cloud.

Choose the right migration strategy

Select the approach, such as rehosting, replatforming, refactoring, or replacing, that best suits each workload’s requirements and your long-term objectives. Applying the same strategy to every application can lead to unnecessary costs or missed opportunities. Matching the right method to the right workload ensures a smoother transition and better results.

Plan for security and compliance from day one

Security and compliance must be built into the migration process, not treated as an afterthought. Identify regulatory requirements early, establish policies for data encryption and access control, and ensure that your chosen cloud provider meets industry standards. A proactive security stance reduces risks and safeguards sensitive information throughout the move.

Test before, during, and after migration

Comprehensive testing at every stage helps prevent downtime and performance issues. Test workloads in a pilot environment before moving them, validate performance during migration, and run post-migration checks to ensure everything functions as expected. Testing also helps identify opportunities for tuning and optimization once workloads are in the cloud.

Enable continuous monitoring and optimization

Once migration is complete, the focus should shift to ongoing continuous performance monitoring, cost management, and optimization. Use cloud management tools to track usage, identify inefficiencies, and make adjustments that improve ROI. Treat migration as the first step in an evolving process of cloud improvement.

Following these best practices turns cloud migration from a one-off project into a long-term strategic advantage. By aligning technology decisions with business goals, organizations can build a cloud environment that delivers real, lasting value.

Examples of cloud migration strategies 

A strategic cloud migration is more than simply moving workloads from one location to another. It involves careful planning, phased execution, and a focus on delivering long-term business value. The following examples illustrate how different organizations might approach migration in a way that reduces risk, improves performance, and ensures a smoother transition, along with the matching “seven Rs” migration strategies that we mentioned earlier for each case.

Modernizing a legacy ERP system (replatforming and refactoring)

A manufacturing company decides to migrate its decades-old on-premises ERP to a cloud-hosted environment. Instead of performing a simple lift and shift, the company chooses a phased replatforming approach. It begins by moving core modules such as finance and inventory to the cloud, then gradually refactors other modules to take advantage of cloud-native analytics, automation, and scalability. This staged migration allows business operations to continue uninterrupted while steadily unlocking new capabilities.

Enabling global collaboration through cloud storage (repurchasing)

A multinational retailer replaces its fragmented, region-specific file storage systems with a unified cloud-based document management platform. By carefully sequencing the migration, starting with non-critical archives and then moving to active projects, the company ensures that teams across time zones have secure, real-time access to the same files. This reduces duplicated work, improves version control, and speeds up product launches.

Transforming customer analytics with cloud data warehousing (rehosting and replatforming)

A financial services firm migrates its on-premises data warehouse to a cloud-based platform to support advanced customer analytics. Using a hybrid approach, the firm first mirrors key datasets in the cloud for testing and reporting while continuing to run mission-critical workloads on-premises. Once performance benchmarks and compliance requirements are validated, the remaining workloads are migrated, enabling faster query performance and more sophisticated AI-driven insights.

Migrating disaster recovery to the cloud (relocating)

An energy provider moves its disaster recovery systems from a secondary physical site to a cloud-based disaster recovery service. The migration is executed in phases, with backup data transferred first, followed by failover testing for select systems. This strategic shift reduces the cost of maintaining a physical backup location while improving recovery time objectives (RTO) and recovery point objectives (RPO).

Rebuilding a customer-facing application as cloud-native (refactoring)

A healthcare technology company chooses to rebuild its patient portal as a cloud-native application to improve scalability and security. Rather than attempting a one-time switchover, the company runs the new portal in parallel with the legacy system, migrating users in batches. This allows for iterative testing, user feedback collection, and performance tuning, ensuring a smoother transition and a better end-user experience.

Your next step to the cloud starts with Domo

A strategic cloud migration sets the stage for better performance, smarter decision-making, and sustained growth. With the right approach, the move to the cloud becomes more than an IT project; it becomes a business transformation. Domo helps make that transformation faster and smoother by connecting all your data, systems, and people in a single, cloud-native platform. 

From seamless data migration to real-time insights that keep your strategy on track, Domo gives you the tools to maximize the value of your cloud investment. Ready to accelerate your move to the cloud? Learn more about how Domo can help you migrate to the cloud without leaving any data behind.