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The issue of cloud migration and cloud operations is tricky. There
are numerous questions that arise from the idea of moving to the
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that this paper will help you better understand the issues Industry Embrace Voice-
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Only 5-6 years ago, the idea that the cloud would be in widespread brands want your data –
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give away your own—or, worse, your clients’—sensitive data to an or just improving your
experience?
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Today, we can safely say that a mindshift has happened: with the Improve Music Copyright
rise of massive data objects and distributed data management, the Management
cloud has become a massive trend and general interest in cloud
technologies continues to grow. According to Forbes, spending on
cloud computing has grown at 4.5 times the rate of IT spending
Agile AI Apple Artificial
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Agile AI Apple Artificial
since 2009 and is expected to grow at more than 6 times the rate of
IT spending through 2020. Intelligence banking Big
However, the issue of cloud migration and cloud operations is tricky.
Data Blockchain
Business Analysis Cloud
There are numerous questions that arise from the idea of moving to Computer Vision Data
the cloud. We have addressed some of these questions here and Visualization
hope that this paper will help you better understand the issues
surrounding cloud computing.
DeviceHive
DevOps Digitalization
Every business situation is unique, and we recommend working Embedded
with an IT consultancy to identify and implement the cloud solutions
that best fit your needs. Should you need deeper insights tailored
Finance Google Glass
hackathon
specifically to your business needs, we are always here to help.
Healthcare
Content hospitality HTML5
Innovation Innovations
1. Introduction
1.1. What are the advantages of moving to the cloud?
IoT Java M2M
iOS

1.2. Is it for everyone, or are there any companies that are better Media &
with an in-house system? Entertainment
1.3. What should we do in advance? Are there any typical Microsoft mobile
mistakes that we should watch for? Music outsourcing PCI
2. Technical issues DSS QAsecurity Security
2.1. How do we plan the migration? How should we organize the
Standards Social
entire process to make it efficient and painless? Networks Streaming
2.2. How do we select a proper migration strategy? Can we just technology
‘lift and shift’ our apps, or should we transform the entire travel Travel &
architecture? Hospitality Usability
2.3. Our system is huge. How do we transfer our data to avoid Video wearable wearables
high network costs, long transfer times and security concerns?
2.4. Our service processes multiple transactions per second.
How do we move it to the cloud and ensure we don’t lose any
transactions?
2.5. Should we transfer the entire system or are there parts
better left out of cloud?
2.6. Which particular technologies could you recommend?
2.7. Should we use any cloud-specific SaaS- or PaaS-
components to replace parts of the legacy systems?
2.8. Should we ‘buy’ instead of ‘build’ (i.e., replace legacy
components or entire solutions with servers on the market)?

3. Financials
3.1. How do we measure financial gains? (Also, ‘cheaper or
not?’)
3.2. What are possible cost optimization options?
3.3. What are the hidden costs of the cloud and how can we
id th
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avoid them

4. Security and Compliance

4.1. This old question again: why should we even trust a third
party – a public cloud provider – with any sensitive data?
4.2. How do we select a cloud provider?
4.3. How to ensure security of the cloud and DevOps?

5. About DataArt

1. Introduction
1.1. What are the advantages of moving to the
cloud?
Operational costs. No need to pay for the equipment,
maintenance, and hardware upgrade. No need to pay electricity
bills. No need to rent floor space for a data center. No need to
hire people to run it. Access to a multitude of options and the
opportunity to experiment at a low price, without any capital
expenditures.
Elasticity and pay-per-use. The elastic environment model of
the cloud is usage-based, which makes it possible to easily
scale and increase computing power on-demand as well as
reduce hardware resources when they not needed.
Risk mitigation and maximum availability. Quick disaster
recovery and maximum resilience and uptime.
Security. This is a point of doubt for many, however thanks to
the economy of scale, large cloud providers can invest far more
resources to secure their applications and client data than most
corporations.
Big Data and advanced analytics. With the cloud, it is possible
to store, access and analyze almost unlimited volumes of data.
For companies that can employ the power of big data to
enhance their business performance, the cloud is the only
possible data model. (However, such companies may prefer a
private cloud model over a public/shared one.)

1.2. Is it for everyone, or are there any companies

that are better with an in-house system?
We should distinguish between three options: the traditional in-
house model, the public cloud and a private cloud. The traditional
model is characterized by the manual or semi-automated
provisioning of server resources, which means that the data is much
less safe in such environments. Cloud computing means the fully
automated provisioning of server resources (the pet vs. cattle
metaphor).

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Usually, when discussing the advantages of cloud migration we are

speaking of the public cloud, which is owned and maintained by
third-party cloud service providers. Private clouds are those that are
built exclusively for an individual organization. Some organizations
that use huge data warehouses and BI workloads may prefer a
public cloud solution due to the benefits in workload performance,
data integration, privacy and data security. Take for example the
cases of Dropbox [see Bloomberg, 01.03.2018] and Walmart [see
Reuters, 14.02.2018], who have recently migrated from AWS, built
their own DCs and saved millions by doing this. But you need to be
that big. For most small and mid-sized companies without a huge
data warehouse like Walmart’s, a public cloud probably is the most
efficient option.

There is also another option that could be beneficial for customers

who want to use cloud but are precluded by regulations, data
sensitivity, or location of data from using the public model. Recently,
Microsoft developed its own hybrid solution, Azure Stack, which
gives customers a way to use a familiar cloud platform without
placing their sensitive data into a multi-tenant environment. It should
not be viewed as a standalone virtualization platform: it includes
basic infrastructure-as-a-service (IaaS) functions that make up a
cloud, such as virtual machines, storage and virtual networking, as
well as some platform-as-a-service (PaaS) features including
container service, serverless computing software, and MySQL and
SQL Server support.

1.3. What should we do in advance? Are there any

typical mistakes that we should watch for?
To name just a few:

The worst possible mistake is not paying enough attention to

the particular business situation. All technical decisions must
be aligned with the business strategy and communicated as
broadly as possible within the company. Otherwise, there is a
risk that even a very thoroughly designed solution will turn out to
be an ‘unwanted child’ and discarded, together with all efforts
and resources spent. Such matters as cost, governance, vendor
lock and footprint should be carefully considered and discussed
with the stakeholders in the company.
Premature technology selection. Some technologies serve
their purpose but may become too expensive in the future. That
is why all technologies should be selected with the long-run
perspective in mind. We recommend conducting short prototype
projects (typically, 2-4 weeks). Prototypes should not be used to
learn the basics of the relevant new technologies, but to put
them under stress conditions and reveal the challenges that the
team will face in the future, such as:
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,
performance and stress load testing
scalability, configuration and deployment
customization and support
pricing

For example, a good prototype for a database should include the

deployment and benchmarking of queries with the volume of data
that the database owners expect in a year.

Poor data management. Lack of clear data governance can

impact the quality of data loaded onto the cloud. Huge volumes
of data may force the company to overlook whether this data is
still relevant. Cloud migration has a truly transformational
potential, offering an opportunity to apply big data analytics
solutions to gain more business insights. However, for this to be
possible, it is necessary to ensure data quality.
Lack of user involvement. It is important to involve real users
as early as possible in order to discover any flaws in your
planning quickly, help them adapt to the transition, dissipate
uncertainty, and win more internal advocates.

2. Technical issues
2.1. How do we plan the migration? How should we
organize the entire process to make it efficient and
painless?
Here is our typical recommended migration framework:

Align and manage areas of focus: gather business

requirements, confirm assumptions, validate hypotheses, and
determine stakeholders, governance, and technologies. At this
stage, a consultant company acts like a doctor, asking questions
and compiling a list of symptoms such as current problems with
data storage, dependencies, plans (new functionality,
exponential growth of the client base, etc), legal and compliance
issues and more.
Planning: Project roadmap. We use proprietary Solution
Design methodology for design and planning complex
transformation programs. This iterative approach considers
expectations, risks and constraint management and ensures
successful completion of the transformation. Possible stages of
this process include: inventory -> desired state shaping ->
concerns and assumptions -> short PoCs -> minimal viable
cloud -> pilot migration -> parallel tracks of migration &
decommissioning.

One important recommendation is to always keep in mind the wider

d l t t t ithi th
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development context within the organization. Just like with any other
complex transformation program, the cloud migration roadmap
should be aligned with the roadmap of other company-wide projects
to avoid conflicts and duplication of efforts as well as to ensure that
in these other roadmaps there will not be any critical milestones that
should be considered as we design and plan our own.

Planning: Portfolio discovery. To streamline the planning

efforts and reduce the risk of missing a dependency at a later
stage, it is crucial to learn which assets the company owns and
determine which will be included in each migration. There are
special dedicated discovery tools (such as Risc Networks’
CloudScape, ScienceLogic’s CloudMapper, or AWS Application
Discovery Service) that help to update the inventory of
applications.
Foundation: Design and set-up the core infrastructure of the
cloud platform. This is the stage when it is crucial to keep focus
on the business strategy and determine which operations and
processes are essential and how they are mapped to
functionalities provided by the cloud. It is also important to
outline a clear cloud governance model and define who will
have access to which controls.
PoC: Migration of first platform consumer. It is important to start
small and simple, migrate the system by parts and see how the
process proceeds.
Multiple Design/Migration/Validation tracks. Active
implementation phase. Migration of data, apps, infrastructure
evolution, and blueprint review.

2.2. How do we select a proper migration strategy?

Can we just ‘lift and shift’ our apps, or should we
transform the entire architecture?
There are several migration strategies:

Rehost

Lift and shift style migration by deployment of the app in the cloud
or migrating VMs.

Pros/Cons

Easiest and quickest

Isolated scope of migration
Suboptimal cloud utilization
Does not work for systems with specific software and hardware
dependencies

Replatform
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Change the platform to be able to run in cloud.

Pros/Cons:

Might be the only way to migrate certain systems into the cloud
Opportunity to revisit the entire ecosystem
Time/budget constraints
Technology constraints

Refactor

Change the implementation and architecture of your solution to

remove dependencies, optimize performance and make it more
robust, scalable and fault tolerant.

Refactoring of applications
Merging applications

Pros/Cons

Leverages cloud and SaaS capabilities

Performance optimization
Time/budget constraints

At first, we can always choose the quickest and easiest option and
then adapt the solution to the cloud as necessary. In our
experience, approximately one third of clients are fine with just the
rehosting option, and another third with the re-platforming option.
However, bear in mind that the cloud has huge transformational
potential and the migration is a great opportunity to optimize the old
architecture, get rid of unnecessary dependencies and replace the
obsolete parts of the system.

There are symptoms suggesting that some re-architecture is

required: “We are happy with how everything works, but we have
this small problem…” (the cost of the cloud solution, MS SQL
servers, etc).

2.3. Our system is huge. How do we transfer our

data to avoid high network costs, long transfer
times and security concerns?
There are several solutions. One example is Amazon Snowball. It is
a data storage and transfer appliance for AWS with a capacity up to
50 Tb that you can request from AWS (one or several in parallel). It
is almost indestructible, self-contained and tamper-resistant. To
quote the Amazon website, “It is rugged enough to withstand a 6G
jolt and light enough for one person to carry. It is weather-resistant
and serves as its own shipping container ” Amazon Snowball was
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and serves as its own shipping container. Amazon Snowball was
the first solution of the kind on the market, and since 2017 the
Azure Data Box and Google Transfer Appliance have also been
introduced.

2.4. Our service processes multiple transactions per

second. How do we move it to the cloud and ensure
we don’t lose any transactions?
With large, complex and specialized transactional systems
(banking, for example), we never just ‘switch’ from the old system to
the new one. We always strive to establish a double-write system,
with one copy in the cloud and another backup copy remaining on
premises, to allow for a rollback if something goes wrong. The
migration is always phased to avoid any risks of malfunction in the
new system. During the pilot migration we could transfer 5% of all
transactions, or a particular type of transactions, or only
transactions belonging to a particular client. Only after a thorough
testing, when correct processing of all types of transactions is
confirmed, would we proceed with the following phases of
migration.

2.5. Should we transfer the entire system or are

there parts better left out of cloud?
A common approach is to keep hybrid infrastructure and use the
cloud to enhance one’s technical capabilities, not to move to it,
accept it as the only new model and never look back. One type of
data often left out of cloud, is third party confidential data or
software – many companies still prefer to store such data on
premises for security and compliance reasons. Another type is
specialized computing-intensive operations, e. g. scientific GPU
computing, rendering and so on. There is usually a highly
developed on-premises infrastructure in place for such operations,
and the cloud may lack sufficient computing power or simply be too
expensive.

2.6. Which particular technologies could you

recommend?
Based on our experience, the suggested approaches are, first and
foremost, continuous integration and delivery (CI/CD), and
second, infrastructure as code (IaC). Those two practices involve
massive automation of infrastructure, DevOps and release
management.

In particular, we recommend the following implementations:

IaC: Terraform by HashiCorp AWS CloudFormation Ansible

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IaC: Terraform by HashiCorp, AWS CloudFormation, Ansible,
Puppet, Chef
CI/CD: Jenkins, Team Foundation Server, TeamCity, Harness
Containerization: Docker, Kubernetes (may be used in all three
main cloud services Kubernetes as a service).

2.7. Should we use any cloud-specific SaaS- or

PaaS- components to replace parts of the legacy
systems?
It depends on the particular business case.

Yes: because such components make it possible to cut

numerous costs on licenses, operation, security updates and
patches, etc.

No: in case you use the system in a very specific way that
requires either numerous customizations and enhancements, or
some very specific performance / SLAs, so standard SaaS and
PaaS offerings will not work for you.

One example of the latter could be the choice between hosting a

relational database on an Amazon EC2 instance or migrating its
contents to an Amazon RDS instance. Amazon RDS is easier to set
up, manage, and maintain than a database in Amazon EC2, and
lets you focus on other tasks rather than day-to-day database
administration. It is a simple out-of-the-box solution if you just want
to run a regular database. Alternatively, running a database in
Amazon EC2 gives you more control, flexibility, and choice, and
makes it possible to set up specific performance or a customized
configuration.

2.8. Should we ‘buy’ instead of ‘build’ (i.e., replace

legacy components or entire solutions with servers
on the market)?
The answer is the same as for the question about SaaS- or PaaS-
components. Buying is reasonable and cost-effective if your needs
are not too specific. Building is recommended if you need a fully
customized solution.

We did solution design for a client, a multinational travel

corporation, who wanted to combine several proprietary apps into
one and needed to select a platform for this new system. They had
very specific requirements with regard to UX, and they also needed
to integrate with their other systems.

We had to decide between building it ourselves, which would

require millions in investment and many months of development or
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require millions in investment and many months of development, or
buying and adapting ready-made components from MS Dynamics
365.

At first, the second option seemed cheaper. However,

eventually we discovered that:

1. MS Dynamics products lacked most of the required functionality,

so we would have to customize them to make them work with our
other systems, and this would still cost much more than building
from scratch;
2. any new features that we add would become the intellectual
property of Microsoft.

These are the two main dealbreakers that lead some companies to
develop their own solutions instead of extending third-party
products.

3. Financials
3.1. How do we measure financial gains? (Also,
‘cheaper or not?’)
There are several factors you should consider in order to determine
if the cloud is less expensive for you.

1. Costs: a monthly (or yearly) invoice from a cloud provider

(which could prove quite high depending on usage). The cloud is
not cheap.
2. Savings: our current IT expenses. Hardware cost and
maintenance cost. Software licenses. Renting data center space.
Labor costs (not just server admins, also infosecurity, audit,
physical security and building maintenance, etc.) Most of it will no
longer be necessary after permanently migrating systems to the
cloud.
3. Costs: our new IT expenses. Some expenses may be gone, but
there will be new expenses. The cloud involves a new discipline
and different DevOps practices. You will need to hire new people
and train existing employees for a new required skill set. You will
need to spend their time to optimize CI/CD in the cloud and to
manage it.
4. Savings: elasticity. If you will need a thousand VMs for the
Thanksgiving sale, you can easily do that with the cloud.
5. Costs: If you migrate to the cloud lift-and-shift style, without any
optimization, then the operational costs in mid-term will be
higher.
6. Savings: However, in long-term the cloud will allow you to reduce
costs even without any optimization – due to the lack of hardware
replacement and maintenance. (Hardware breaks, if it is your
server – you buy another one or deal with a vendor you replace
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server you buy another one or deal with a vendor, you replace
disks and clean up the dust from server blades. In case of the
cloud, you receive an email 30 days in advance and in about 10
minutes you replace the VM in question with a newer version.)
(There also many options for optimization!)

3.2. What are possible cost optimization options?

To name just a few:

Wholesale discounts: the more you consume the less you pay,
relatively. Each successive terabyte will cost you less.
Each storage has SaaS- and PaaS-solutions that lower your
costs. You can use SaaS and pay less for the same service,
and you do not need to support and manage server instances.
Reserved instances provide a significant discount (up to 75%)
compared to on-demand pricing if you commit to use them for 1-
3 years ahead, especially if you pay upfront (all or part).
Spot instances are a bid for a low price version of on-demand
instances. The catch is that they could be shut down by the
provider when the spot instance price is higher than bid price.
Spot price fluctuates based on supply of and demand for
capacity. However, using spot instances can save you up to
90% compared to on-demand, and it is also possible to invest in
the development of a fault-tolerant system that is able to survive
the failure of a few instances (e.g. batch jobs or large analytics
jobs for big data processing). This will improve your architecture
and it will be a great option for reducing operational costs.
With the serverless approach, you pay only for the actual
amount of computational services provided (say, $0.20 per
million of requests) – you do not need to pay for virtual
machines anymore. Serverless is the next generation of cloud
infrastructure, and there are more and more serverless
applications every day.

3.3. What are the hidden costs of the cloud and how
can we avoid them?
One big source of unexpected costs is the lack of data
governance with too much of technical freedom. Sometimes
people simply forget to turn off virtual machines that they do not
really need. If nobody monitors the resource allocation, costs can
start to grow uncontrollably. It is highly recommended to plan ahead
for 12-18 months at least.

In one case, a client used cloud virtual machines to run builds on

CI. They started with 5 servers and the costs were very moderate,
but after several months this number grew to 80 and the cloud costs
went up to 20,000 USD/month. The system was designed in such a
way that it was not possible to simply downscale the number of
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way that it was not possible to simply downscale the number of
machines. We solved this problem by redesigning the system and
moving CI processing to spot instances.

Another example: Redshift. Redshift is an amazing database, very

fast, very scalable, but also very expensive. You need to have a
very good reason to use it. You can scale it up any time by adding
more servers. Your cluster can grow to thousands of dollars per
month, and if you are not careful, this cluster becomes an essential
part of your system that your business will depend on. Without
thoughtful long-term planning it is highly risky to invest in such
technology as it can make you bleed money.

Software licenses are another topic. Enterprise systems, such as

database servers, are sometimes licensed per CPU core. The more
CPUs your server has, the more your license costs. If your cloud
solution is very scalable and you have a lot of CPU cores in the
cloud, the license can become prohibitively expensive.

4. Security and Compliance

4.1. This old question again: why should we even
trust a third party – a public cloud provider – with
any sensitive data?
Mature cloud providers invest heavily in security and compliance.
The effort that will be required to match their level may be even too
expensive to implement within most companies’ on-premises
systems. Check the main provider pages on security Microsoft
Azure, AWS, and Google.

4.2. How do we select a cloud provider?

A potential cloud service provider must be checked carefully to
make sure it is qualified, reliable, financially stable to operate over a
long term, and has a good reputation on the market. Among
industry best practices and standards, there are certifications like
ISO 27001 or the Cyber Essentials Scheme. Also check Microsoft’s
short guide on provider selection.

4.3. How to ensure security of the cloud and

DevOps?
From the security point of view, the cloud is not much different from
any other service: you must implement best practices for the
security management of your data, authentication and access
controls. However, cloud solutions give you tools that better support
a cloud environment.

1 User permissions You must manage permissions for your

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1. User permissions. You must manage permissions for your
cloud’s users, operators and developers. This is called identity and
access management (IAM). The most important best practice is
that you should limit user access to resources and data on a need-
to-have basis, striving to have a minimal set of permissions.
2. Networking infrastructure security includes managing network
topology, firewall rules, traffic security policies, and points of
contact with the Internet – in case of both security ‘at rest’ and ‘in
transit’.
3. Data security includes access control to the data storage,
including files and databases, and encryption of data to mitigate
damage even in case of data leak.
4. Secure software development. Software developed for the cloud
should use the usual set of industry-accepted security best
practices. Practice security-first programming, audit code
changes, code reviews, security audits, etc.
5. Secret management. Do not leak your security credentials to the
code repository, but instead keep credentials (such as the
database server password) in secret management vaults
integrated in your cloud solution. This allows you to easily monitor
access to passwords, rotate credentials and revoke access that is
no longer necessary.
6. Human factor. At the end of the day, the biggest threat is neither
security vulnerabilities nor breaches: it’s people. Your users may
be not careful with their passwords or keys. Educate them, remind
them regularly of the importance of data security, and do not forget
to set a password rotation policy.

5. About DataArt
DataArt is a global technology consultancy that designs, develops
and supports unique software solutions, helping clients take their
businesses forward. Recognized for their deep domain expertise
and superior technical talent, DataArt teams create new products
and modernize complex legacy systems that affect technology
transformation in select industries.

DataArt has earned the trust of some of the world’s leading brands
and most discerning clients, including Nasdaq, S&P, Travelport,
Ocado, artnet, Betfair, and Apple Leisure Group among others.
Organized as a global network of technology services firms, DataArt
brings together expertise of over 2,500 professionals in 20 locations
in the US, Europe, and Latin America.

www.dataart.com

Tags: Cloud, Finance, Gaming Technology Solutions, Healthcare &

Life Sciences, IoT/M2M, Media & Entertainment Software Solutions,
Retail & Distribution, Travel & Hospitality
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Alliance Pro IT Pvt Ltd 19 March, 2019 09:18 am

Hi, I completely agree with the above comment, the internet is

with a doubt growing into the most important medium of
communication across the globe and its due to sites like this
that ideas are spreading so quickly. Cloud migration services in
India

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