In the wave of digitalisation, many Malaysian businesses are introduced to new tech terms that carry the fate of their ventures. Among the technical jargons we hear from day to day is “cloud migration”. Tune Talk, which is one of Malaysia’s fastest-growing Mobile Virtual Network Operators (MVNO), officially completed its cloud migration to Amazon Web Services (AWS) last week, making it the nation’s first fully cloud-enabled telco operator.
Cloud Migration
Technically, cloud migration refers to the shifting of a company’s digital assets from physical, especially on-site, infrastructure to a cloud platform. Cloud Migration could involve information technology (IT) elements of a business including productivity software, business services, enterprise databases, Internet of Things (IoT), Customer Relations Management (CRM) support systems and network administration tools.
Cloud migration is critical in achieving real technological advantage in an increasingly competitive business environment and reaping the tech benefits such as real-time and updated data as well as operational efficiency. However, careful analysis, planning and execution are crucial to ensure that the eventual cloud solutions package is compatible with one’s business requirements. Cloud migration is not a simple copy-and-paste shift, the migration exercise requires the unwavering support and participation from key business divisions, technical personnel and, most importantly, the vision and mission set forth by business leaders and stakeholders.
In general, there are four types of cloud deployment models namely public cloud, private cloud, hybrid cloud and multi-cloud. The public cloud offers benefits of global accessibility and versatile solutions. The private cloud involves dedicated resources for enhanced control. The hybrid cloud, as the name suggests, combines the public and private cloud architecture to offer flexibility. Finally, the multi-cloud model entails multiple cloud services possibly partitioned to public and private cloud platforms for optimisation of specific workloads with specialised cloud service providers.
The Pros of Cloud Migration
Cost effectiveness and cost efficiency – Cloud migration can help a business cut costs, both in the short-term and long-term, by reducing the need for expensive and bulky physical infrastructure like servers and data centers, in terms of the initial overhead cost and the ensuing maintenance expenses including wear-and-tear that warrant upgrade or replacement of the entire fleet of machines and peripherals. IT management becomes easier as cloud services handle tasks such as software updates, IT technical support and sometimes even training. Moreover, businesses can opt to pay for cloud storage services in subscription model, turning capital expenses into predictable operating costs. In addition, by migrating to cloud, enterprises can bring down their carbon footprints as providers are technically responsible for the sustainability concern, though in recent years some parties have suggested a “user-pay” carbon accountability model.
Flexibility and scalability – Cloud-based services can make a business more flexible by allowing for quick changes in storage and computing needs. Also, in cloud, businesses pay only for the resources they use, thus saving from owing and maintaining IT assets. The cloud environment can accommodate increasing workloads and allow for remote access of work data from anywhere, enhancing collaboration, productivity and mobility.
Data security – By storing data in the cloud, businesses can enjoy higher levels of security, as cloud providers often have relatively robust security measures in place and a dedicated team of security professionals. Major players in cloud service invest heavily on cyber security and data security by offering encryption, multi-factor authentication, compliance certification to safeguard data, and also built-in backup and recovery capability.
Digital modernisation – Cloud migration opens doors for numerous opportunities to embrace technological advancement. Businesses that migrate to cloud can leverage new technologies like Artificial Intelligence (AI) and Machine Learning (ML) which are usually not feasible on-premise. Businesses are offered the option to scale rapidly with rising market demand using auto-scaling functionality and flexible data management and analytics services. Typically, cutting edge tools for analytics are difficult to administer and expensive on-premise, whereas on cloud, such tools are often packaged in the cloud migration deal. Businesses which migrate to a cloud platform can adopt innovation instantly allowing them to stay competitive, and at the same time revamp their software to incorporate the latest features and security modules. Cloud service providers normally handle software aspects such as maintenance, security updates, and upgrades, and most importantly, security patches which improves system security.
The Cons of Cloud Migration
Potential data security risks – Cloud migration can expose company data to security risks. If not properly managed, sensitive information might be vulnerable to cyber threats. Though a challenge, cloud service providers usually have a range of security offerings given their ample budget to finance security measures and cost of IT experts. In cloud migration projects, misconfiguration during setup and deployment can lead to security risks through unexpected downtime, functionality losses and productivity setbacks. This might be attributable to incompatible cloud infrastructure with differing operating systems or special configuration settings.
Unexpected migration cost – Migrating to the cloud platform can sometimes lead to unforeseen expenses. These could be due to complexity in the migration process where extra resources are needed. Without meticulous planning and implementation, the cost can drastically go up in a cloud migration exercise, leading to additional investment of time and money.
Vendor lock-in issue – Vendor lock-in is another concern. The lock-in strategy makes it difficult and costly for businesses to switch services if they are not satisfied with the current cloud service provider.
Compatibility issue with legacy system – Lastly, there can be compatibility issue when integrating cloud services with older legacy system. This refers to a long-standing system that has been around for a long time that its widespread use has made it difficult to be renewed or replaced. Additional time and resources might be required to resolve the non-compatibility issue of system and cloud integration.
Outlook
Looking ahead, robust growth is expected in cloud services as the wider digital sector moves forward with force, especially following billions of investment in data centres used to store cloud-based data and software programmes. In October this year, Oracle announced a significant investment of over RM27.1 billion to establish its first public cloud region in Malaysia. Earlier, in May 2024, Microsoft announced an investment in the amount of RM10.5 billion in AI and cloud infrastructure. Other global cloud operators which have a presence in Malaysia include Google and Amazon, in addition to dozens of renowned local cloud service providers such as PointStar Malaysia, ITWin Technology, and MatrixC.
Sources: https://aspiringyouths.com/advantages-disadvantages/cloud-migration/#google_vignette/, https://paraminfo.com/8-reasons-cloud-migration-benefits-challenges/, and https://www.mybizhub.my/8-best-cloud-service-providers-in-malaysia-2024/
