The Benefits of Cloud Migration in 2025
What’s so attractive about moving to the cloud?
Cloud computing has transformed how businesses deploy and use software, shifting from traditional on-premises setups to flexible, internet-based services. While on-premises systems still offer control and reliability, the cloud provides scalability, lower upfront costs, and easier access from anywhere. Migrating to the cloud can unlock faster growth and reduced IT burdens, but it also introduces challenges around security, compliance, and hidden costs. This article explores what the cloud is, why companies migrate, and the benefits and risks that come with the transition.
The revenues of key cloud market players keep growing. Tech leaders prioritise cloud security in their cybersecurity investment plans. The interest to the cloud technologies and services shows very few signs of slowing down.
But what exactly is so attractive about migrating to the cloud? Are there any downsides to this transformation? Let’s find out.
What is the cloud?
The cloud is an umbrella term used to speak about:
- the cloud software deployment method,
- the applications hosted in the cloud,
- and the technologies to enable cloud hosting.
There are two main ways to deploy enterprise software: in the cloud or on premises.
Historically, software applications were installed within the organization’s physical premises. With this option, the organization that hosts the software is also responsible for the infrastructure on which it runs. The infra has to be secure and continuously updated.
In a cloud implementation, software applications are delivered through the internet. The software provider hosts the product on its premises, while users can access it on a pay-as-you-go basis. For example, they might use it for one month and give up in the next month. Compared to the on-premises option, cloud customers don’t need to set up the infrastructure required to run such an application. They access the vendor’s resources over the cloud for a fee (which is usually tied to spent time or usage rate).
Both cloud and on-premises deployment models are used in 2025, although for different purposes. We haven’t found reliable statistics on cloud adoption in 2025, but in 2022, 47% of companies reported to prefer cloud-first, and 26% on-premises-first when deploying new applications.
What is cloud migration?
The meaning behind this term is quite literal: the process of transferring data and applications from on-premises to the cloud.
Why migrate to the cloud? Benefits of cloud migration
As mentioned, cloud and on-premises models are used with different purposes. The on-premises model is widely considered more robust and reliable, while the cloud is cheaper and more scalable.
With all its pros and cons, why migrate to the cloud in 2025?
Cloud migration can unlock faster growth, simpler operations, and more flexible ways of working. For many businesses, it represents not just a technical change, but a strategic shift in how they operate and scale.
Lower upfront costs
Instead of heavy investments in hardware and data centers, the cloud uses subscription or pay-as-you-go pricing. This allows companies to start small, scale as they grow, and avoid tying up capital in infrastructure. A startup, for example, can launch with minimal cost, while a larger enterprise can reallocate funds from servers into innovation or market expansion.
Scalability on demand
Cloud resources expand or contract instantly as needs change. Seasonal spikes in e-commerce traffic, sudden viral growth in an app, or large-scale simulations in research can all be handled without scrambling for servers or IT staff. This elasticity ensures you’re paying for capacity only when you need it.
Access from anywhere
With data and applications hosted online, teams can collaborate from any location. This supports distributed workforces, international operations, and hybrid work models. A product team in New York, a developer in Berlin, and a client in Singapore can all work in real time without delays.
Less maintenance, more focus
Providers handle hardware, patches, and upgrades. That means IT teams can stop worrying about routine server upkeep and focus instead on higher-value projects — like improving customer experience, strengthening security policies, or innovating new products.
Enhanced security expertise
Top cloud providers employ dedicated security teams and invest heavily in advanced safeguards that are often out of reach for mid-sized organizations. Legally, responsibility for many security incidents shifts from you to the provider. In some industries, this transfer of liability can even reduce insurance costs.
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Challenges and risks of cloud migration
Moving to the cloud brings significant advantages, but it also comes with trade-offs. Businesses need to weigh these risks against their priorities and constraints.
Security and compliance
Even with strong safeguards, sensitive data in the cloud raises valid concerns. Industries like healthcare, finance, or government face strict regulations, and compliance isn’t always straightforward. For example, some regulators may not allow certain data to leave national borders, which limits the choice of cloud providers.
Internet dependency
Cloud systems are only as reliable as the connection that supports them. Outages, high latency, or slow speeds can disrupt real-time operations. Imagine a trading firm or a telemedicine provider — even a short connectivity loss can cause significant reputational or financial damage.
Less control over updates
Cloud vendors control updates and upgrades. While this keeps systems secure and up to date, it can also mean sudden interface changes or feature removals. Teams may face disruptions if workflows are altered overnight, requiring extra training or rapid adaptation.
Hidden and rising costs
Cloud pricing can appear simple but grow complex over time. Per-user fees, higher-tier feature locks, and add-on services often increase costs unexpectedly. Without close monitoring, long-term expenses may surpass the cost of on-premise systems. For example, duplicating data across regions for resilience — something many enterprises require — can drive costs up sharply.
Vercel and Netlify are two cloud hosting providers notorious for billing their users unexpectedly high amounts of money because of the peculiarities in their pricing: User got a $104K bill from hosting provider: “I thought it was a joke”.
Dependency on provider reliability
If a major provider suffers an outage (such as Amazon Web Services going down), dependent businesses can be completely offline. Unlike on-premise systems where redundancy can be built independently, in the cloud you rely on the provider’s resilience and disaster recovery strategies.
To have a peace of mind about your cloud resources, their costs and availability, consider using tools like AlloyScan. AlloyScan automatically discovers on-premises and remote hardware and audits cloud resources.
Here is how AlloyScan helps:
- It provides a comprehensive overview of your IT ecosystem
- Prevents unnecessary expenses
- Identifies potential issues
- Enhances IT support capabilities.
Connect with our sales team to learn more about AlloyScan.
Cloud migration tips & best practices
A successful cloud migration takes more than just moving data from point A to point B. Here are some proven practices that make the process smoother and less risky.
Start with a clear plan
Define your goals up front. Are you aiming to cut costs, improve scalability, or modernize legacy systems? Setting priorities helps guide decisions about providers, tools, and timelines.
Choose the right migration strategy
Not every workload should be handled the same way. Some apps may be fine with a lift-and-shift approach, while others need to be refactored or re-architected to take full advantage of the cloud.
Prioritize security and compliance
Build security into your migration from the start. Consider encryption, access controls, and regulatory requirements to avoid gaps once systems are live.
Test before going all in
Pilot projects reduce risk. Moving a small, non-critical workload first allows your team to uncover issues early, refine the process, and build confidence before scaling.
Invest in training and change management
Cloud adoption isn’t just technical—it’s cultural. Make sure teams understand the tools, workflows, and benefits so they’re ready to embrace the new environment.
Monitor and optimize continuously
Migration isn’t the finish line. Regularly review usage, costs, and performance to make sure the cloud continues to deliver value as your business evolves.
Cloud adoption trends
Cloud adoption continues to accelerate as businesses push for flexibility, cost savings, and faster innovation. Several trends stand out in how organizations are approaching the shift.
Multi-cloud strategies
Companies are no longer tied to a single provider. Using multiple clouds—often mixing AWS, Azure, and Google Cloud—helps reduce vendor lock-in and allows teams to choose the best platform for each workload.
Hybrid environments
Many businesses aren’t going all-in on cloud. Instead, they combine on-premises systems with cloud services to balance compliance needs, cost control, and performance. Hybrid setups are especially common in industries with strict data regulations.
Focus on security and governance
As cloud adoption grows, so does attention to security frameworks and compliance. Businesses are investing in stronger identity management, monitoring, and automation to keep cloud environments secure at scale.
AI and automation in the cloud
Organizations are leaning on cloud platforms for advanced capabilities like machine learning and analytics. Built-in AI services are lowering the barrier to entry and letting even smaller teams experiment with predictive tools and automation.
Sustainability goals
Providers are promoting greener infrastructure, and businesses increasingly cite sustainability as a factor in cloud decisions. Migrating to shared, energy-efficient data centers helps reduce environmental impact compared to maintaining legacy hardware.
Key takeaways
Cloud vs. on-premises: Both deployment models remain relevant in 2025, with cloud offering scalability and lower upfront costs, while on-premises delivers control and reliability.
Cloud migration benefits: Businesses can gain flexibility, faster innovation, reduced maintenance, and global accessibility by shifting workloads to the cloud.
Challenges to consider: Security, compliance, internet dependency, and hidden costs must be addressed with careful planning and monitoring.
Best practices matter: A clear migration plan, strong security measures, pilot testing, and ongoing optimization help ensure a smooth transition.
Future trends: Multi-cloud strategies, hybrid environments, AI integration, and sustainability goals are shaping the next phase of cloud adoption.
