Cloud migration isn't all-or-nothing: Strategic options for SMBs in 2025

Small and medium sized businesses (SMBs) are increasingly recognising the transformative potential of cloud migration. This strategic IT move offers many benefits in terms of increased efficiency, innovation, and growth. Cloud migration is the process of moving an organisation’s digital assets, services, databases, IT resources, and applications from on-premises infrastructure to cloud-based systems.

However, it’s not an all-or-nothing choice.

SMBs have the flexibility to either fully migrate or opt for a hybrid strategy, where selected portions of data and applications are moved into a cloud environment. The choice between full or partial migration depends on the SMB’s specific needs, goals, and resources.

Working with a third-party specialist, like an MSP, will help develop a strategic plan based on immediate and long-term business objectives, ensuring the organisation chooses the best approach for their requirements.

Cloud migration is certainly a trend our customers are following. If you haven’t already done so, 2025 could be the ideal year to make the move.

• Businesses can choose to fully migrate data and applications to the cloud or opt for a hybrid environment
• Cloud migration eliminates hardware end-of-life issues and can reduce hardware and software costs
• Long-term or pay-as-you-go software licensing options offer different benefits and facilitate IT scalability and flexibility
• Cloud environments empower workforce mobility and collaboration which are ideal for remote or hybrid teams
• Cloud providers invest heavily in cyber security measures ensuring their environments are secure from the latest threats
• Develop a strategic IT plan that looks to the future.

Let’s explore why SMBs should seriously consider cloud migration in 2025.

An organisation’s decision to migrate to the cloud can often be driven by the end-of-life timelines for critical hardware and software. In 2025 this can help mitigate the challenge of upgrading to Windows 11.

In October 2025, Microsoft will cease to provide support and security updates for Windows 10. In addition, security updates for Windows 11 will only apply to devices with a Trusted Platform Module (TPM chip).  This means that in order to keep systems secure many organisations are faced with the prospect of upgrading hardware, as it is estimated that around 42% of devices will be incompatible with the hardware requirements of Windows 11.

Organisations delaying to upgrade will also face the following problems:

• Exposure to security risks once Windows 10 support ends
• Risk of hardware shortages as demand exceeds supply
• Price increases as a result.

Moving to Azure Virtual Desktop (AVD) would circumvent this problem. Using a AVD  means that you don’t need a powerful processor or a lot of storage capacity to run complex tasks. As a result, older machines can continue to be used as a Client, eliminating the need for costly hardware upgrades.

Cloud computing offers the opportunity to save money on hardware by eliminating the need to replace older machines or purchase high-end computers with large processing capabilities. It also removes the need to maintain physical servers on-site.

With careful planning businesses also can save money on cloud licensing agreements.

Both long-term and pay-as-you-go models offer different benefits, but consideration of your current and future situation is needed to make the right choice.

Opting for a long-term plan when transitioning to the cloud offers several advantages over the pay-as-you-go model. With long-term agreements, businesses benefit from reduced consumption rates, allowing them to manage their IT budgets more effectively.

These agreements provide predictable costs, enabling better financial planning and stability. Furthermore, subscribing to a long-term plan often grants access to advanced technologies and automatic updates, ensuring that businesses stay up-to-date with the latest features and innovations without incurring additional upgrade fees.

This approach not only saves money but also provides a more structured and reliable IT infrastructure, which is crucial for sustained growth and competitiveness.

These agreements eliminate the need to purchase software licences upfront or enter into long-term agreements. The Pay-as-You-Go model with Azure offers significant flexibility and scalability, making it ideal for businesses with fluctuating resource needs or those just starting their cloud journey. This model allows you to pay only for the resources you use, without any upfront costs or long-term commitments, which can be particularly beneficial for development environments or unexpected traffic spikes.

Flexibility comes at a cost. Pay-as-you-go rates are typically higher than reserved rates. This means that while you can scale resources up or down as needed, the overall cost may be higher compared to committing to a reserved instance.

Both subscription-based licensing models provide SMBs with regular, predictable and manageable costs.

In addition, they enable businesses to access the latest technology as it becomes available and benefit from automatic software updates without upgrade fees.

Ensuring that your Microsoft 365 setup aligns with your operational needs is key to maximising productivity and cost savings. Discover the pros and cons of purchasing annual and monthly licenses and find out how to choose the best option.

The same reasons that reduce costs enable IT scalability and business agility. By moving to the cloud businesses can easily adapt technology to their current needs. Business growth means simply adding more licences as needed.

Having access to flexible, on-demand IT resources also helps businesses stay competitive. There is no need to wait for hardware to become available as it can be purchased on demand from cloud providers.

Using cloud services transforms traditional office boundaries by facilitating employee mobility. Employees can securely access critical business systems, documents, and collaboration tools whether they’re in the office, at home, or travelling. This flexibility goes beyond basic remote access – it enables a truly dynamic work environment.

The nature of the cloud allows employees to seamlessly switch between devices including office workstations, personal laptops, shared terminals and even mobile devices.

Cloud-based solutions enable better collaboration among team members. This is particularly beneficial in remote, hybrid or hot-desking environments. Not only can documents be edited and shared in real time, but files are version controlled and synchronised, making it easier to work across locations, countries and even time zones.

In addition to operational efficiencies and cost savings, the cloud can help organisations significantly strengthen their cybersecurity posture by providing:

• Robust data protection
• Advanced threat detection and response
• Centralised security management
• Improved disaster recovery.

Cloud providers invest heavily in large teams of security experts who use the latest technology and work around the clock. This means they can stay ahead of the latest security threats and respond quickly. Few individual organisations would be able to achieve this level of security on their own.

However, cyber security is a shared responsibility between organisations and their vendors. Appropriate due diligence is essential when evaluating suppliers to create and maintain a secure and accountable environment for sensitive data.

Despite the financial and reputational damage that cyber-attacks can cause there is still a reluctance to invest in putting appropriate measures in place to combat cyber-threats. Discover why SMBs must prioritise cybersecurity and understand their vulnerability as prime targets for attacks.

The cloud offers SMBs numerous advantages. However, to fully leverage these a strategic approach is essential, considering both current and future requirements. Partnering with an MSP can help businesses optimise cloud computing while navigating the complexities of modern IT environments and developing a more resilient and efficient IT infrastructure.

MSPs can provide crucial expertise in:

• Selecting appropriate cloud services for specific business needs
• Planning and executing cloud migrations
• Integrating different cloud services and legacy systems
• Optimising cloud architecture for cost and performance
• Ensuring compliance with industry regulations.