Since February, we’ve engaged in numerous conversations with customers who purchased hardware during COVID and are now considering their next steps as that hardware approaches end-of-life. The question on their minds is how to make the transition to the cloud while factoring in the consolidation of existing servers that are migrating to SaaS solutions.
While there are many tools and offers available to facilitate cloud migration, the old adages of “if it’s too good to be true, it probably is” and “if it’s free, you are the product” still hold. Choosing the right approach isn’t just about cost—it’s about transparency, alignment with business needs, and a sustainable operational model.
At Codify, we take an iterative, customer-focused approach to cloud migration, ensuring that every decision is made with clarity and confidence. Our five-stage methodology allows customers to evaluate their migration path with a structured, transparent process.
The Five Stages of Cloud Migration Planning
1. Guestimate
Cloud migration discussions often start informally, perhaps even at a BBQ. At this stage, we offer a high-level estimate based on our experience with similar customers who have comparable numbers of VMs and security, compliance, and networking requirements.
2. Offline Estimate
A common next step is for us to obtain a list of VMs to build an initial bill of materials. This is a “naïve, as-is” price estimate. On-prem, you have the flexibility to configure CPU, RAM, and disk combinations based on the hardware you have. In Azure, you need to choose from predefined SKU combinations. For example, if you currently run 1 CPU and 16GB RAM, the closest Azure equivalent might be 4 CPU and 16GB RAM.
At this stage, customers often ask about additional Azure costs beyond VMs and storage. This is where we leverage our Azure Benchmark to provide industry comparisons and insights to give you a complete view of costs in the cloud.
3. Online Estimate
To optimise the pricing from the offline estimate, we monitor the VM utilisation to align actual resource usage with the appropriate Azure SKU. This step ensures that the cloud environment is right-sized rather than over-provisioned.
4. Application-Focused Assessment
Unlike traditional on-prem infrastructure, cloud environments require a cost-aware approach to application hosting. We implement FinOps principles to ensure ongoing cost visibility. At this stage, we build an Application Portfolio by grouping interdependent resources (e.g., databases, web servers, and reporting tools) into logical applications.
For each application, we determine the best migration strategy using the 6R framework (explained below) and project a multi-year Azure spend forecast. This is particularly important for businesses planning SaaS transitions for key systems like ERP or HRIS. By forecasting decommissioning costs or reduced runtimes, we can factor those changes into later years of Azure expenditure.
5. Agreed Solution
With the Application Portfolio defined, we collaborate with your team to refine the migration plan, incorporating operational efficiencies and security enhancements. Some common refinements include:
- Replacing legacy firewalls with next-generation solutions (e.g., migrating Mosman Council from WatchGuard to FortiGate).
- Modernising enterprise applications by shifting workloads to containers and Azure SQL.
- Redesigning backup and disaster recovery (DR) to align with business continuity expectations.
The 6R Migration Framework
A structured migration approach considers the six key migration strategies:
- Rehost – Also known as “lift and shift,” this approach moves applications to the cloud with minimal changes.
- Refactor – Optimising applications to take advantage of cloud-native services.
- Replatform – Making minor adjustments to applications to leverage cloud features without a full refactor.
- Repurchase – Moving from an on-prem solution to a SaaS alternative.
- Retire – Decommissioning applications that are no longer needed.
- Retain – Keeping certain workloads on-prem where cloud migration does not provide a business benefit.
By applying the 6R methodology, we ensure that each application is migrated in the most effective and cost-efficient manner.
Leverage the Azure Benchmark for Informed Decisions
Our Azure Benchmark provides insights into how your projected Azure costs compare with industry standards. This helps in validating cost estimates and making informed decisions throughout the migration process.
Conclusion
Cloud migration is a significant business decision that requires a structured approach. By following our five-stage methodology and leveraging the Azure Benchmark, we help customers gain transparency, optimise costs, and build a migration strategy aligned with their long-term objectives. Whether you’re starting with a guestimate at a BBQ or diving deep into FinOps-driven cost optimisation, we’re here to guide you every step of the way. Get in touch!