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Cloud Migration

Cloud migration refers to moving applications, data and infrastructure from your own data center to a cloud environment. The spectrum ranges from an unchanged move (rehosting) to a cloud-native rebuild — which path is viable depends on the application, regulation and economics.

Migration strategies at a glance

A widespread classification scheme distinguishes six strategies — the “6 Rs”:

StrategyApproachTypical use
Rehost (lift-and-shift)move the application unchanged to cloud infrastructurefast data center exit, little benefit beyond that
Replatformselective adjustments, e.g. switching to a managed databasereduce operational effort at moderate cost
Refactor / re-architectrebuild towards a cloud-native architecturestrategic core systems with a long remaining lifetime
Repurchasereplacement with a SaaS productstandard functions without differentiating value
Retireshut down the applicationunused or redundant systems
Retaindeliberately keep as is (for now)systems with high coupling, regulatory hurdles or imminent replacement

Real portfolios almost always use a mix — the strategy is decided per application, not across the board for the entire landscape.

More than a move: cloud-native as the target picture

The promised benefits of the cloud — elasticity, shorter release cycles, lower operational effort — do not come from the change of location, but from the architecture: containers and orchestration (Docker, Kubernetes), managed services instead of self-operation, infrastructure as code (such as Terraform), automated CI/CD pipelines and often a decomposition into microservices or event-driven systems.

A pure lift-and-shift, on the other hand, carries the data center sizing and architecture 1:1 into the cloud — and thus frequently becomes more expensive than before, because capacity is paid for around the clock that was already written off on-premises.

Regulated industries: sovereignty as a framework condition

For banking, insurance and critical infrastructure, classic public cloud setups quickly hit hard legal, regulatory and data protection limits (such as BaFin requirements and GDPR). Viable answers are hybrid architectures and private cloud environments in German or European data centers, as well as architectures compatible with sovereign cloud initiatives such as Gaia-X. The choice of provider — whether AWS, Azure or a European hoster — should be made in a vendor-neutral way based on the economic and regulatory criteria of the specific use case, not on vendor roadmaps.

Cloud migration in practice: when it is not worth it

Not every application belongs in the cloud — an honest assessment per application therefore comes before any strategy:

  • Stable, predictable load: If a system runs steadily on existing hardware, self-operation is often cheaper — elasticity only pays off with fluctuating load.
  • Imminent replacement: For systems that will soon be shut down or replaced anyway, the migration effort is no longer worthwhile.
  • Data and latency requirements: High data transfer costs or hard latency requirements can speak against the cloud.
  • Migration without a target picture: Those who only change location without adapting architecture and operations pay more for the same state.

Moving individual workloads back out of the cloud (repatriation) also happens in practice — it is not a failure, but part of ongoing portfolio management.

Frequently asked questions

What does lift-and-shift mean?
Lift-and-shift (rehosting) is the simplest migration strategy: the application is moved unchanged from your own data center to cloud infrastructure. This is fast and minimizes the risk of change — but hardly unlocks any cloud benefits, because the data center architecture and sizing are adopted 1:1. It is often the first step, followed by incremental modernization.
Is the cloud automatically cheaper than your own data center?
No. Stable, well-predictable load often runs more cheaply on existing, written-off hardware. Cost benefits arise above all with fluctuating load (elasticity), through managed services instead of self-operation and through an architecture that uses resources on demand. Without these adjustments, a pure lift-and-shift frequently ends up more expensive than the previous operation.
What is a sovereign cloud?
A cloud environment in which data storage, operation and the legal framework are under European or national control — for example through data centers in Germany, European operators or architectures following standards of initiatives such as Gaia-X. This is particularly relevant for regulated industries such as banking, insurance and critical infrastructure, where GDPR and supervisory requirements (such as those of BaFin) set limits for classic public clouds.

Related terms

Reviewed by Holger Schill, Executive Vice President Cloud & Enterprise on July 20, 2026