18 Cloud Migration Failure Statistics (To Avoid Pitfalls)


Cloud Migration Failure Statistics

Hey there, fellow cloud enthusiast! Are you tired of sifting through outdated, irrelevant statistics on cloud migration failure? Look no further! We’ve compiled a comprehensive list of cloud migration failure statistics that are sure to keep you informed and up-to-date.

We know the struggle of trying to stay on top of the latest trends and statistics in the fast-paced world of cloud migration. That’s why we’ve taken the time to curate this list, ensuring that you have access to the most relevant and valuable information on the topic.

With our list, you’ll be able to make informed decisions about your cloud migration strategy and avoid common pitfalls. Plus, you’ll be able to impress your colleagues and friends with your knowledge of the latest cloud migration failure statistics.

So why wait? Take action now and read through our list of cloud migration failure stats. Trust us, your future self will thank you. And remember, knowledge is power – especially when it comes to cloud migration.

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Cloud Migration Failure (Key Takeaways)

  • 37% of cloud migrations fail to meet their intended objectives.
  • 62% of cloud migration projects fail or are more challenging than anticipated.
  • 30% of business leaders report that their cloud transformation expectations have not been met.
  • 38% of organizations report that cloud migration has failed to meet their expectations in terms of headcount reduction.
  • 10% of organizations report no improvements or changes for the worse after migrating to the cloud.
  • 16% of organizations identify employee training and upskilling as an area for improvement to increase the success of cloud migrations.
  • The highest skills gap in cloud migration is in cloud service monitoring and response and applications architecture design at 12% each.

General Cloud Migration Failure Statistics

1. One in three (37%) cloud migrations fail to meet their intended objectives.

If your business is considering a cloud migration, it’s important to take note of this stat: 37% of companies experience failure when attempting to migrate to the cloud because they don’t make the cloud part of their core strategy.

In other words, simply moving your data to the cloud isn’t enough – you need to integrate it into your overall business plan and strategy in order to see success. Don’t let your migration become a failure statistic – make sure the cloud is a central part of your plan.

(Unisys)

 

2. 62% of cloud migration projects turn out to be more challenging than anticipated or fail altogether.

Competing IT projects and/or lacking expertise seem to be the most common underlying issues for failure, as cited by 56% of organizations.

When it comes to the actual challenges when migrating to the cloud, research reveals that security is the primary concern, as cited by 46% of organizations. Changing to new processes and the migration itself taking longer than expected follow at 34% and 31%, respectively.

Lack of skills and/or staff and system performance/architecture manageability are cited as cloud migration challenges by 29% and 28% of organizations, and so are organizational change management at 26%, and governance change management and compliance difficulties at 25% each.

23% of organizations cite difficulties in cost/investment management as one of the challenges faced during cloud migration, while 21% say the same about the lack of a clear strategy/roadmap and 19% about the lack of automation.

(ChannelPro, Unisys)

 

3. At 25% each, incompatible legacy technology and skills and resource shortages are the primary reasons why cloud migration projects fail.

Exceeding the budget ranks second at 20%, closely followed by not testing thoroughly enough. Other reasons for cloud migration project failure include scaling up too quickly, lack of planning, being let down by an IT partner, choosing the wrong platform, and not allocating enough time.

Other research points to the lack of understanding of cloud security and compliance as the top reason for cloud migration failure at 56%, closely followed by the lack of clearly-defined objectives for the migration itself at 55%, and the lack of planning at 44%.

(Cloud Industry Forum, Forbes)

 

4. 59% of organizations reported that poor planning was the primary cause of delays in their AWS go-live process.

You’re not alone if you’ve experienced delays in your AWS go-live process. In fact, according to a recent survey, poor planning prior to the cloud migration was the most common reason cited for delays in AWS go-live, with 59% of respondents reporting that this was the case for their organization.

Don’t let inadequate planning hold you back from achieving your cloud migration goals. Take the time to carefully plan and prepare for a smooth and successful transition.

(Jefferson Frank)

 

5. 30% of business leaders say their cloud transformation expectations haven’t been met.

The above figure compares to 42% of business leaders who agree that their cloud migrations met their expectations and 28% who claim their expectations were exceeded.

However, the more important the cloud is to the overall business strategy, the likelier the migration to it to meet organizations’ expectations.

In that sense, among organizations that have integrated the cloud at the core of their business strategy, only 20% agree that migration failed to meet their expectations.

The corresponding cloud migration failure figures for organizations where the cloud is a major vs. minor part of their business strategies stand at 35% and 53%, respectively.

(Unisys)

 

6. 38% of organizations agree cloud migration has failed their expectations regarding headcount reduction.

The second-most-common area where cloud migrations fail to meet expectations is cost reduction or management, as agreed by 35% of organizations, closely followed by revenue increase and staff productivity increase at 32% each.

Competitive advantage and agility to match demand are areas where respective 30% and 29% of organizations saw their cloud migrations fail their expectations.

Cloud migrations failed to meet the expectations of 28% of organizations when it comes to time-to-market acceleration, while 27% share the same sentiment regarding customer experience improvement and 26% about driving innovation.

Respective 25% and 23% of organizations say that supply chain improvement and data and IT security are the areas where migrating to the cloud has failed their expectations.

(Unisys)

 

7. In terms of effectiveness, 10% of organizations either see changes for the worse or no improvements after migrating to the cloud.

Of those, 6% say cloud migration hasn’t resulted in any changes in organizational effectiveness, while 3% and 1% say it slightly or moderately changed for the worse, respectively.

While 23% of organizations agree that cloud migration has slightly improved their effectiveness, the rest saw great (31%) or moderate improvements (35%).

(Unisys)

 

8. 3% of organizations who have integrated the cloud at the core of their business strategy say their effectiveness has worsened after cloud migration.

Another 4% claim their organizational effectiveness didn’t change, and 10% that it only slightly changed for the better.

Data reveals that cloud migration failure is inversely proportional to its importance as part of the overall business strategy.

In that sense, 6% of organizations who have adopted the cloud as a major part of their business strategy say their effectiveness hasn’t changed post-migration. The portions of those who say their organizational effectiveness changed for the worse or slightly for the better stand at 3% and 27%, respectively.

Among organizations that have adopted the cloud only as a minor part of their business strategy, 15% say their effectiveness hasn’t changed at all after migration. Changes for the worse are reported by 8% of organizations in this category, while slight changes for the better by 47%.

(Unisys)

 

9. 4% of organizations with less than half of their IT environment on the cloud say they saw moderate or great changes for the worse post-migration.

Another 42% agree they faced only slight or no changes in their organizational effectiveness after migrating to the cloud. In this regard as well, data indicates that cloud migration failure is inversely proportional to the portion of an organization’s IT environment it hosts.

In that sense, the aforementioned figures drop by 50% when it comes to organizations with more than half of their IT environment on the cloud. Only 2% of such organizations say they saw moderate or great changes for the worse post-migration, while 22% agree they faced only slight or no changes in their organizational effectiveness after migrating to the cloud.

(Unisys)

 

10. By leveraging third-party support for cloud migration, organizations are 27% more likely to attain organizational effectiveness improvements.

In other words, working with a third-party expert can greatly increase the chances of a successful and effective transition to the cloud.

Cloud migration can have numerous benefits, including increased flexibility, scalability, and cost savings. However, it can also be a complex and daunting process, which is why many organizations choose to work with third-party support to ensure a smooth transition.

The study suggests that this decision can pay off, with organizations that use third-party support being significantly more likely to experience improvements in organizational effectiveness. This could include things like increased productivity, improved collaboration, and streamlined processes.

(Unisys)

 

The Reasons Contributing to Cloud Migration Failure and How to Prevent It

11. 95% of organizations agree that cloud migrations come with multiple challenges.

Cloud migration can be a complex and challenging process for many organizations. One common challenge is that the migration process can take longer than expected, with many projects taking a year or longer to complete.

57% of projects involving application migration take longer than estimated, with 73% of organizations expecting them to take a year or longer.

What’s more, nearly 50% of application migration projects exceed the budget. This can be due to a variety of factors, including the need to purchase additional hardware or software or the difficulty of migrating certain applications.

It’s important for organizations to carefully plan their migration process and budget accordingly to avoid these challenges.

(ChannelPro)

 

12. 16% of organizations cite employee training and upskilling as an area to improve on to make cloud migrations more successful.

Improving security is cited by 14% of organizations, while agile processes and better strategy and planning were each cited by 12%.

10% of organizations cite cloud providers, apps, tech, and infrastructure as an area to improve on to make cloud migrations more successful, while improving communication, change management/external consultants, and setting realistic timelines were each cited by 6%.

Finally, managing costs and expectations and customer needs along with quality products were the areas where respective 4% and 3% of organizations agree should be improved upon to make cloud migrations more successful.

(Unisys)

 

13. The cloud migration skills gap is highest in cloud service monitoring and response and applications architecture design at 12% each.

More specifically, the ratio between the necessary skills and the ones that internal teams have stands at 46% vs. 34% and 40% vs. 32%, respectively.

At an 11% skill gap, or respective ratios of 42% vs. 31% and 39% vs. 28%, cloud ecosystem and cloud cost expertise rank second.

SLA and member management follow with a 7% skill gap and a 36% vs. 29% ratio, along with code troubleshooting with a 6% skill gap and a 35% vs. 29% ratio when it comes to the skills internal teams are required to have to successfully carry out a cloud migration vs. the skills they actually have.

(Forrester via Red Hat)

 

14. The average company spends 14% more on cloud migration than planned, resulting in over $100 billion in global cost overruns over a three year period.

Are you tired of watching your company throw money down the drain during the cloud migration process? You’re not alone.

New data shows that inefficiency during migration is costing the average company 14% more than they had planned on spending. And when you add up the cost overruns from all companies worldwide, it totals a whopping $100 billion in wasted spend over three years.

That’s some serious cash going to waste, folks. It’s time to get your migration strategy in check and avoid becoming a part of this costly trend.

 

15. 75% of businesses report exceeding their yearly cloud migration budget, and 38% have seen their cloud migrations delayed.

Among the ones that went over their cloud migration budget, 47% say they did so by up to 19%, while 27% say they spent over 20% more than what was planned.

Among the ones that had their cloud migrations delayed, 25% were less than three-quarters behind schedule, while 13% were behind for longer than that.

(McKinsey)

 

16. 45% of businesses exceeded their cloud migration budget in change management.

System-integrator spending ranked second, as the area where 37% of businesses go over their cloud migration budget, followed by bubble costs at 34%, network charges at 17%, and early termination and decommissioning costs each at 15%.

The majority of companies who went over budget to accommodate for costs in the above areas did so by up to 25%.

(McKinsey)

 

17. Cloud migration outperformers exceed in commitment to upfront investments on early termination fees by 28 percentage points.

Preventing cloud migration failure

Developing comprehensive security/compliance ranks second, where cloud migration outperformers exceed others by 24 percentage points, followed by ensuring a high degree of CEO involvement at 17 percentage points.

Hiring for next-generation cloud skills and laying out an end-to-end strategy and roadmap before starting are the areas where cloud migration outperformers exceed others by nine and eight percentage points, respectively.

(McKinsey)

 

18. The average organization currently staffs 35% cloud talent.

This figure is predicted to exceed 45% among internal personnel by 2024. Non-cloud talent currently accounts for 65% of organizations’ staff and is anticipated to fall to 52% by 2024.

In terms of third-party employees, current data points to 46% of in-house cloud talent, with that figure likely to rise to 57% by the end of 2024. When it comes to non-cloud talent, third-party personnel accounts for 54% of it and is predicted to drop to 43% by the same time.

(McKinsey)

 

Conclusion

As you’ve learned from our comprehensive list of cloud migration failure statistics, the world of cloud migration can be complex and unpredictable. But with the right knowledge and strategy, you can overcome common pitfalls and achieve success in your migration.

Now that you’ve armed yourself with this valuable information, it’s time to take action and put it to use. Whether you’re a seasoned cloud expert or just starting out, there’s always room for growth and improvement in your cloud migration strategy.

And remember, with great knowledge comes great responsibility. As a cloud migration expert, it’s up to you to share your knowledge and insights with others. So don’t be afraid to share this article with your colleagues and friends – after all, knowledge is power, and the more people who are informed about cloud migration failures, the better off we’ll all be.

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