The path to the cloud is a complex terrain. This article provides a detailed guide for SMEs on how to make the transition to the cloud successfully and step by step. From planning and migration to optimization: here you will learn how to use the cloud effectively in your company.

The cloud had its big breakthrough in the 1990s – and it’s not a one-hit wonder! Cloud computing has become the norm in both the corporate and private sectors. This was not only shown by the KPMG Cloud Monitor in 2023 (https://hub.kpmg.de/de/cloud-monitor-2023), which found that 97% of German companies with more than 50 employees already use cloud solutions. It has long been apparent on the horizon that cloud technologies will also become increasingly necessary for small and medium-sized enterprises (SMEs) in the future if they want to remain competitive.

The cloud not only offers the opportunity to reduce costs and improve efficiency, but also to tap into new business opportunities and respond more flexibly to market requirements. However, the transition to the cloud can be a challenge for many SMEs – especially when it comes to organization, migration and integration into existing business processes.

In this article, we offer a detailed guide to help SMEs manage the transition to the cloud step by step. From the importance of the cloud for SMEs to specific strategies for preparation, migration, fine-tuning and progress, you’ll find everything you need to successfully adopt the cloud in your business.

Cloud computing and its importance for SMEs

In recent years, cloud technology has become a central element of the digital revolution. The cloud offers a multitude of benefits for SMEs: For example, it allows SMEs to access innovative technologies without having to spend large capital investments in hardware as well as infrastructure. They can use scalable IT resources to react flexibly to changing conditions and strengthen their competitive position.

In this increasingly networked world, the cloud is also an indispensable tool for collaboration, sharing and data storage. It enables companies to work from any location and deploy their employees more efficiently.

Cloud computing is also a key component of the digital transformation of SMEs. The move to the cloud has the potential to improve business processes, open up new market areas and understand and serve customers more effectively.

However, although the cloud brings so many benefits, there are also some challenges to overcome, particularly in terms of security, data protection and compliance. SMEs need to design carefully and take the appropriate measures to minimize these risks and take full advantage of the cloud’s opportunities.

Preparing for the cloud transition

As with a move, where countless boxes are packed, labeled and stacked, cloud migration also requires appropriate preparation and planning. Below are some steps that you should consider when planning for the cloud transition:

– Step 1) Analyze the status quo and company goals: Before you (can) take the step into the cloud, it is important to examine the current status of your IT infrastructure as well as your company processes. Identify areas in which the cloud could provide added value and set clear, measurable goals.

– Step 2) Develop a cloud strategy: Based on your analysis, you should design a precise cloud strategy that supports your long-term business goals. Define which workloads and applications should be migrated to the cloud and which cloud services and providers best suit your needs.

– Step 3) Selecting the right cloud services and providers: There are a lot of cloud services and platforms on the market, so it is relevant to choose the ones that best suit your needs. Consider aspects such as performance, reliability, security and cost.

– Step 4) Budgeting and resource planning: The transition to the cloud is associated with costs – it is therefore important to set a budget and plan the required resources appropriately. Take into account not only the direct costs for the cloud services, but also the costs for training, support and integration.

– Step 5) Communication and change management in the company: The transition to the cloud will bring changes to your company. It is therefore important to involve your employees at an early stage and inform them about the planned changes. Make sure that everyone involved understands the benefits of the cloud and supports the project.

The 5 R’s of cloud migration

There is no universal solution when moving your company to the cloud. That’s why it’s necessary to familiarize yourself with the different cloud migration tactics. Below we present the five main types of cloud migration strategy, known by the acronym “5 R’s”:

1. rehost (lift and shift): The simplest approach to cloud migration. It consists of migrating applications and data to the cloud without making any changes. This is fast and cost-effective and is perfect for companies that need a quick migration.

2. refactor (Lift, Tinker, and Shift): This strategy involves making minor changes to applications to optimize them for the cloud. It is a middle ground between rehosting and more costly migrations and provides a balance between spending and cloud optimization.

3. rearchitect (redesign for cloud): Rearchitecting involves significantly changing or completely redesigning existing applications to take full advantage of cloud-native features and extensibility. It is suitable for companies that want to improve their performance and flexibility.

4. rebuild (rebuild from scratch): Here, the old application is completely discarded and redeveloped using cloud-native technologies. This is an option for companies that are willing to invest in the creation of applications that fully utilize the possibilities of the cloud.

5. replace (drop and store): The replace tactic involves switching to another service, usually a cloud-owned service, replacing existing solutions with software-as-a-service (SaaS) applications.

Each of these strategies has its own merits and considerations. The choice depends on various factors, including the complexity of your existing IT environment, the sensitivity and nature of the data you process, your performance requirements, cost considerations and long-term business goals.

Seamless transition: the path to the cloud

Once you are fully prepared, it’s time to start the actual migration to the cloud. Here are some measures you should take into account during the migration:

– Step 1) Data cleansing and migration: Before you migrate data to the cloud, you should ensure that it is clean and structured. Remove unnecessary data and carry out data cleansing if necessary to improve the quality of your data.

– Step 2) Implementation of cloud services: Once your data is prepared, you can start implementing cloud services. Tip: Start with less critical workloads and applications and then expand as required.

– Step 3) Ensure compliance and data security: The integrity and compliance of your data is essential, especially when it comes to sensitive data. Make it clear that your new cloud infrastructure meets current security standards and guidelines and initiate appropriate security measures such as encryption and access control.

– Step 4) Train employees to use the cloud: The successful use of the cloud also depends on the training of your employees. Provide training and education to ensure that your employees can use the new cloud tools and technologies efficiently.

– Step 5) Monitoring and optimizing the cloud infrastructure: After the migration, it is important to continuously monitor and improve your cloud infrastructure. Identify bottlenecks and performance problems in good time and make appropriate adjustments to ensure the best possible performance and scalability.

Successful in the cloud: strategies for continuous growth

Migration to the cloud merely marks the start of a continuous process. Long-term profit requires continuous optimization and further development of your cloud infrastructure. To use resources more effectively and reduce costs, you should take full advantage of the cloud. This includes implementing automated scaling and resource optimization to ensure the best possible performance and availability.

The unmatched scalability and flexibility of the cloud enables companies to react quickly to changing requirements and scale their business. Take advantage of these benefits to become more agile and competitive and lead your company successfully into the future!

Integrating new technologies and services into the cloud infrastructure is crucial to ensure competitiveness. Keep up to date with technology trends such as artificial intelligence, IoT and big data and use them to drive your business forward.

To measure the success of your cloud projects and ensure that your strategy is profitable in the long term, you should define clearly defined KPIs. Define areas where improvements are needed and adjust your strategy accordingly to ensure you achieve your goals.

Do you want to make the transition to the cloud and want a reliable partner at your side for this step? We are here for you. We look forward to hearing from you!