How to move your business to the cloud: A step-by-step guide 

Not long ago, businesses relied on physical servers and on-site data storage to keep everything running. But this setup came with risks like hardware failures, data loss, expensive maintenance, and limited accessibility. A single power outage or system crash could wipe out important files, and scaling up meant costly upgrades and more physical space. 

Now, businesses have a better option: the cloud. Instead of depending on local physical servers, companies can store data securely online and scale effortlessly as they grow.   

This guide will walk you through the process of cloud migration step by step, so you can transition smoothly and make the most of what the cloud has to offer. Let’s get started! 

What is cloud migration? 

Cloud migration is the process of moving your business’s data, applications, and IT systems from on-premises servers to the cloud. Instead of relying on physical hardware, you store and manage everything through cloud-based platforms. We will discuss the types of cloud migration and examples of these cloud-based platforms later in this blog. 

What is the difference between cloud migration and cloud computing? 

Cloud computing, on the other hand, is the ongoing use of internet-based computing services, such as storage, software, and processing power. Unlike migration, which is a single event, cloud computing is a continuous way of operating.  

A company can use cloud computing without migrating anything, like using Google Workspace for email and collaboration while keeping core systems on local servers. 

In short, cloud migration is the move to the cloud, while cloud computing is how businesses use it once they’re there. 

Why businesses are moving to the cloud 

Companies of all sizes are making the switch because cloud computing offers the following benefits: 

• Scalability. Cloud computing quickly adjusts storage and computing power based on your needs, without buying new hardware. 

• Cost efficiency. Cloud computing allows you to only pay for what you use, reducing IT expenses and eliminating costly hardware upgrades. 

• Security. Cloud providers invest heavily in cybersecurity, offering data encryption and backup solutions that comply with industry regulations. 

• Collaboration & accessibility. Cloud computing enables convenient file and application access to employees anywhere, making remote work seamless. 

• Disaster recovery. Cloud backups prevent data loss from system failures, cyberattacks, or physical damage. 

Each approach has its pros and cons, but the right choice depends on your business goals. In the next section, we’ll explain how to move your business to the cloud smoothly. 

Key steps to moving your business to the cloud 

A simple file transfer isn’t enough. A smooth transition requires planning and selecting the right solutions. Here’s a step-by-step guide to help you move your business to the cloud efficiently: 

Step 1: Assess your business needs and cloud readiness 

Before jumping into the cloud, take a step back and make sure it’s the right move for your business. Ask yourself these key questions: 

• What data and applications need to be migrated? Not everything needs to go to the cloud. Identify critical systems, customer data, and files that must be accessible online. 

• What are your security and compliance requirements? If you handle sensitive information, you may need to follow strict regulations like Health Insurance Portability and Accountability (HIPAA), General Data Protection Regulation (GDPR), or Service Organization Control Type 2 (SOC 2). Make sure your cloud provider meets those standards. 

• Is your current IT infrastructure ready? Some older software and hardware might not be compatible with cloud systems. Check whether your existing setup can integrate smoothly with cloud platforms. 

• Will moving to the cloud save you money? Compare your current IT expenses (like servers, maintenance, and storage) with potential cloud costs. Cloud services can save money in the long-term, but it’s important to weigh cost vs. benefit before making the switch. 

A cloud readiness assessment can help you spot potential challenges and ensure you’re fully prepared before migrating. Considering these questions will help you move to the cloud strategically without experiencing potential roadblocks. 

Step 2: Choose the right cloud solution 

Not all cloud solutions are the same. The two key choices are selecting the right environment and choosing a provider that meets your business needs. 

Selecting a cloud model 

There are three main ways to set up your cloud environment, each with its own pros and cons: 

Type	Pros	Cons
Public	Cost-effective, easy to scale, minimal maintenance required	Less control, shared resources may impact performance or security
Private	Full control, enhanced security, better compliance for sensitive data	Higher costs, requires ongoing maintenance
Hybrid	Balances security and scalability, best for businesses needing both flexibility and control	More complex to manage, requires integration between cloud environments

Each option serves different business needs. Public clouds work well for cost-conscious companies that want simplicity, private clouds suit industries with strict security requirements, and hybrid clouds offer a mix of both for businesses needing flexibility. 

Choosing a cloud provider 

Not all cloud providers are the same, so consider these key factors before making your decision: 

• Cost and pricing models. Are you paying only for what you use or do you need a fixed plan with predictable costs? Some providers offer discounts for long-term commitments. 

• Scalability. Can the provider grow with your business? If you expect to expand, make sure your cloud service won’t slow you down or force you into expensive upgrades. 

• Security features. Does the provider offer built-in encryption, automatic backups, and compliance certifications? If you handle sensitive customer data, security should be a top priority. 

• Integration capabilities. How well does the cloud service work with your existing software? If your business relies on Microsoft Office, Google Workspace, or other tools, pick a cloud provider that plays nice with them. 

• Performance & reliability. Downtime can cost you money. Look for providers with high uptime guarantees (99.9% or more) and fast server speeds to keep your business running smoothly. 

• Customer support. Things will go wrong at some point—how quickly can you get help? Some providers offer 24/7 support, while others may leave you waiting. Make sure you get the level of help you need. 

Step 3: Create a migration strategy 

Now that you’ve picked a cloud provider, you need to figure out how you’ll move your data and applications.  Businesses typically use one of these four strategies: 

• Rehosting. This is the quick and easy method. It involves moving your applications to the cloud as they are, without making any changes. The upside is it’s fast. The downside is you don’t get to fully take advantage of cloud benefits like cost optimization and better performance. 

• Refactoring. With this method, you tweak and improve your applications, so they work better in the cloud. This could mean modifying the code or optimizing the database for cloud performance. It takes more effort but can make your systems run faster and scale better in the long run. 

• Replatforming. This is the middle ground between rehosting and refactoring. This involves making small modifications to take advantage of cloud features without a full redesign. For example, switching from a traditional database to a cloud-based one. It’s a good balance between speed and optimization. 

• Replacing. Instead of migrating old software, you switch to a cloud-native alternative, often a Software-as-a-Service (SaaS) solution. For example, instead of moving your old email server, you switch to something like Google Workspace or Microsoft 365. This can save money and simplify IT management. 

The best approach depends on your budget, timeline, and long-term goals. If you need to migrate quickly, rehosting might be the best option. If you want to fully optimize for the cloud, refactoring or re-platforming will help you get the most out of it. And if your current system is outdated, replacing it with a cloud-native solution may be the smartest move. 

Cloud migration isn’t one-size-fits-all, so pick the strategy that makes the most sense for your business. 

Step 4: Migrate data and applications 

Now it’s time for the big move. This is where your business actually shifts to the cloud. To make sure everything goes smoothly, follow these key steps: 

• Back up all critical data. This is your safety net. Before moving anything, make copies of all important files, databases, and systems. This way, if anything goes wrong, you can restore everything without panic. 

• Use migration tools. Cloud providers offer tools to make the process easier. For example, platforms like AWS Migration Hub, Azure Migrate and Google Cloud’s database migration service help transfer data efficiently and securely. 

• Minimize downtime. No one wants their website or systems to be offline during the switch. To keep disruptions low, schedule the migration during off-hours or slow business periods. If possible, move things in phases instead of all at once. 

• Test everything before going live. Double-check that all applications, systems, and connections work properly before fully switching over. Run tests to catch any issues before they affect customers or employees. 

Step 5: Ensure security and compliance 

Security is one of the biggest concerns when moving to the cloud. Your data is valuable and keeping it safe from hackers and leaks should be a top priority.  

• Enable encryption. Encryption is like a secret code. Even if someone intercepts your data, they won’t be able to read it. Make sure your data is encrypted both when it’s stored and when it’s being sent. 

• Use multi-factor authentication (MFA). Passwords aren’t enough anymore. MFA adds an extra security step, like a one-time code sent to your phone. This makes it much harder for hackers to break in. 

• Implement access controls. Not everyone in your company needs access to everything. Set up permissions so that employees only see the data and systems necessary for their roles. This helps prevent accidental leaks and insider threats. 

• Conduct security audits. Regularly assess your cloud setup to identify vulnerabilities and strengthen your defenses. Audits help detect gaps in encryption, access controls, and data protection policies before they become security risks. 

Most cloud providers include built-in security tools, but they’re not automatic. It’s up to you to turn them on and keep monitoring for threats. 

Step 6: Optimize performance post-migration 

The work isn’t over yet. After you’ve successfully moved to the cloud, you’ll need to fine-tune performance and ensure everything runs smoothly. Here’s how to do it:  

• Monitor cloud usage. Keep an eye on how much storage, bandwidth, and computing power you’re using. Cloud analytics tools help track performance and spot areas where you might be overspending. 

• Automate scaling. Instead of paying for resources you don’t need, set up auto-scaling so your cloud adjusts to traffic demands. This prevents overpaying during slow periods and keeps things running smoothly during high-demand times. 

• Train employees. New tools mean new ways of working. Make sure your team knows how to use cloud-based systems efficiently so they can work faster and smarter. 

• Regularly review security and compliance. Just because you’ve set up security once doesn’t mean you’re done. Schedule regular audits and security updates to keep your business protected from threats and ensure compliance with industry regulations. 

Common challenges with the cloud and how to overcome them 

Moving to the cloud can save businesses money in the long run, but unexpected costs can quickly add up if migration isn’t planned properly. Understanding cloud pricing models can help you maximize savings without compromising performance.   

Here’s how to keep cloud migration cost-effective.  

Understand upfront vs. ongoing costs 

Beyond migration expenses, ongoing costs like data transfer, storage, licensing, and maintenance can add up. To avoid surprises, estimate costs ahead of time and use cloud provider tools to assess expenses before migrating. Prioritize essential workloads instead of moving everything at once. 

Choose the right pricing model  

Different pricing models impact long-term costs. Pay-as-you-go is flexible but can get expensive, while long-term commitments offer discounts. Opt for a pricing structure that fits your usage and scale down resources when demand is low. 

Reduce data transfer and storage costs  

Frequent data transfers can be costly. Minimize expenses by using content delivery networks (CDNs), compressing files, and keeping high-use data within a single region to avoid unnecessary transfer fees. 

Take advantage of free and discounted cloud services  

Many cloud providers offer free tiers, trial credits, and discounts for startups or small businesses. Use these incentives to cut costs and take advantage of built-in monitoring and security tools instead of paying for third-party services. 

Regularly audit and optimize costs post-migration  

Cloud costs require ongoing monitoring. Schedule regular cost audits, track expenses by project, and set spending limits to prevent waste. Automation tools can help flag unused resources and optimize your cloud setup over time. 

Now is the time to move to the cloud 

Using cloud technology can save businesses money and make it easier to scale. Instead of dealing with expensive hardware and constant maintenance, you can store data and access everything from anywhere. The ticket to a smooth transition is figuring out what your business needs, choosing the right cloud solution, and managing costs wisely. 

If you’re thinking about making the switch, a free cloud consultation or assessment can help you find the best path forward. Whether you’re a small business looking for flexibility or a larger company focused on security, there’s a cloud solution that fits.  

And if you’re looking for more options, explore the different hosting solutions at Domain.com and see how you can take your business to the next level. 

How to move your business to the cloud FAQ