Because of significant increases in data volumes, organizations are facing the challenge of legacy systems struggling to cope with increased processing and data storage requirements. With data playing an essential role in business operations, executives must either upgrade their IT infrastructure or install robust software capable of handling the growing data streams.
Data is the driving force behind modern operations, decision-making, and customer engagement in the digital world. As technology advances and business goals change, data migration—a smooth transition between different systems—is becoming an inevitable requirement for every organization.
This article investigates signs that such a migration is necessary and provides strategic recommendations on when it should be carried out.
The Purpose of Data Migration
5 Signs You Need Data Migration
Transferring your data to a new platform may initially seem intimidating, so it's crucial to validate that the move makes sense before proceeding. Our specialists have identified five significant indicators suggesting that you should migrate your data soon.
System Performance Issues
Over time, the need to modernize technology is inevitable. Breakthroughs are constantly being made, and stronger systems are being brought to market, so organizations must prioritize the compatibility and effectiveness of their systems.
According to a study by Currys PC World, around 46 minutes of an employee's daily working time is lost due to outdated software or infrastructure and delayed solutions. This can result in a potential loss of around $3,500 per year per employee for businesses.
Outdated technology poses serious risks that can lead to organizations facing recurring performance issues, such as extremely slow loading times, frequent system outages, persistent glitches, data loss, and other technical challenges that aren't easily fixed.
In addition, as technology advances, older systems become outdated relatively quickly, which means that the compatibility of systems becomes more and more of an obstacle to operations over time.
Scaling Challenges
Business needs evolve constantly and require adaptable systems that support changing workflows and processing demands. When technologies become outdated, the transition to modern systems becomes imperative but challenging due to compatibility issues. Establishing a solid foundation with a modern system early on allows businesses to adapt their strategies to evolving functionalities and gain a competitive edge.
Data migration consolidates business data into a single, redundant system that improves management, protection, and analysis. Purging outdated or redundant data during migration improves operations and decision-making and frees up space for new data.
Storing bad data or overestimating data storage needs costs companies billions of dollars each year. According to Gartner, these practices caused $12.9 million in losses in 2021 alone. Modern SaaS systems offer a pay-as-you-go model that enables cost-effective scalability and efficient resource allocation after migration.
High Cost of Maintaining Your System
Outdated systems pose a major hurdle for companies due to their exorbitant maintenance costs. To keep outdated systems functional, companies need to regularly update, patch, and maintain them, which results in an increased financial burden on IT spending.
Industry experts claim that up to 80% of the money spent on maintaining obsolete software prevents companies from investing in innovation or expansion plans. Furthermore, these outdated programs run the risk of falling victim to cyber threats, which can lead to costly regulatory penalties and data breaches. The growing need for new technologies makes it vital for businesses to promptly switch to more efficient, modern solutions, as delaying such data migration will only drive up costs further. This will ensure the cost-effectiveness of data migration.
Limited Data-Sharing Capabilities
Outdated systems often lack the necessary infrastructure and features to enable effortless data sharing between different teams and departments. This can lead to data becoming siloed, preventing productive cross-functional collaboration and decision-making. In addition, limited data sharing can hinder the adoption of modern approaches such as real-time analytics or cloud-based collaboration tools.
As companies increasingly use the insights gained from their data to drive growth and compete, insufficient communication capabilities can lead to missed opportunities and reduced efficiency. Therefore, upgrading your system with powerful data-sharing features is essential to drive innovation, agility, and effective teamwork in today's fast-paced business environment.
Compliance Requirements Change
Regulators, like the GDPR in Europe or the CCPA in California, often mandate updates to data handling practices. Compliance with the new requirements may require organizations to assess their current data infrastructure and processes. For example, the strict privacy regulations introduced by the GDPR require businesses to establish robust measures to protect personal data. In response, businesses may need to migrate their data to systems that offer enhanced data encryption, access controls, and audit capabilities to meet regulatory standards.
Key Considerations Before Initiating Data Migration
Before you embark on data migration, you should make a few important considerations:
- Data Volume and Complexity: Assessing the size and complexity of the data sets involved is crucial. Outrightly, 47% of business owners state that their organization will lag as data volume increases rapidly. This emphasizes the importance of understanding the scale of data migration tasks.
- Compatibility and Interoperability: It is crucial to thoroughly assess compatibility between old and new systems, along with the ability to work seamlessly with other applications. Neglecting compatibility issues with legacy systems may result in lost or damaged data during migration due to incompatibilities.
- Data Quality and Integrity: Maintaining data integrity during migration is crucial to prevent errors and discrepancies in the new environment. IBM has estimated that inadequate data quality results in an annual loss of over $3 trillion for the U.S. economy, highlighting how vital it is to ensure high-quality data before moving forward with a data migration project.
- Security and Compliance: Prioritizing data security and complying with regulations, such as GDPR or HIPAA, is crucial. Not doing so can lead to severe consequences like hefty fines and harm to reputation. An instance of this includes British Airways facing a £183 million fine for a data breach due to insufficient migration security measures they had adopted.
- Resource Allocation and Planning: Effective planning and resource management are crucial in ensuring successful data migration. This requires the allocation of sufficient resources, including skilled personnel and an appropriate budget. Acuvate states that 50% of migrations exceed their allocated budget, which emphasizes the need for strategic allocation of resources during this process.
- Business Continuity: Reducing downtime and disruption to business operations is of paramount importance. Amazon's S3 outage in 2017, which impacted key websites and services, was a testament to the potential impact that migration-related downtime can have on businesses and users.
- Stakeholder Communication and Buy-In: It is crucial to have efficient communication with stakeholders and acquire their support to ensure successful data migration. Based on McKinsey's research findings, failure to engage stakeholders results in 70% of transformation programs not meeting their objectives.