Richard Strattner, director of product marketing with Tecsys, details the benefits and challenges of migrating on-premises software to the cloud.

As a means of reducing a company’s operating costs, the migration of information systems to the cloud might seem counterintuitive. Such a move, after all, requires some investment in a new technology. But in the end, Strattner says, the savings are there, in the form of reduced capital expenditures arising from the outsourcing of IT infrastructure. 

Another advantage of moving to the cloud is the opportunity to benefit from “continuous innovation,” Strattner says. On-premise software is “a fixed subject,” with periodic updates. With cloud-based systems, however, the latest innovations can be delivered by the provider “at speed.”

Finally, he says, there’s the ability of the cloud to scale IT operations up or down in accordance with the user’s current needs, without having to wait for major software updates.

Many companies are still relying on on-premise applications, Strattner says. But the cloud “is no longer an untested concept. The overall market is moving to it.”

There are challenges to making the change. One is the tendency of people to resist unfamiliar systems and processes. Even more daunting is the need for modifications to existing software. Companies might fear that the painstaking customizations that they’re made over the years will disappear when systems go to the cloud. Still, says Strattner, “the way things have been done is not necessarily the way things should be done going forward.”

Strattner urges laggards to begin preparing for cloud migration of their systems now. “Taking control allows organizations to make the decision affirmatively, not defensively,” he says.