Cloud Migration Checklist for Australian Small Businesses

Moving your business infrastructure to the cloud is one of the most impactful IT decisions an Australian SMB can make in 2021. After a year that forced many businesses to rapidly adopt remote work, the cloud is no longer a nice-to-have — it is essential. But migrating without a clear plan can lead to downtime, data loss, and unexpected costs.

This checklist will walk you through every stage of a successful cloud migration, with practical considerations specific to Australian businesses.

Why Australian SMBs Are Migrating Now

The events of 2020 demonstrated that businesses relying on on-premises infrastructure faced serious challenges when offices closed. Those with cloud-based systems adapted more quickly. Heading into 2021, many Australian SMBs are looking to make permanent changes to their IT infrastructure.

Key drivers include:

• Remote work permanence: Many Australian businesses are adopting hybrid work models long-term.
• Cost predictability: Moving from capital expenditure on hardware to operational expenditure on cloud subscriptions.
• Scalability: The ability to scale resources up or down as business demands change.
• Business continuity: Cloud infrastructure provides built-in redundancy and disaster recovery options.

Phase 1: Assessment and Planning

Before touching any systems, you need a thorough understanding of what you have and where you want to go.

Audit Your Current Infrastructure

Start by documenting everything:

• Hardware inventory: List all servers, storage devices, networking equipment, and their specifications.
• Software inventory: Document every application, its version, licensing terms, and dependencies.
• Data inventory: Identify where your data lives, how much there is, and how sensitive it is.
• User accounts and permissions: Map out who has access to what across your systems.
• Integration points: Note how your systems connect to each other and to external services.

Identify Your Migration Priorities

Not everything needs to move at once. Rank your workloads by:

• Business criticality: What systems would cause the most disruption if they went offline?
• Migration complexity: Some applications move easily; others require re-architecture.
• Quick wins: Identify systems that can be migrated quickly to build momentum and demonstrate value.

For most Australian SMBs, email and productivity tools (Microsoft 365 or Google Workspace) are the easiest starting point. Line-of-business applications and databases often require more careful planning.

Set a Realistic Timeline

A typical SMB cloud migration takes three to six months for the core workloads. Do not rush it. Factor in time for:

• Vendor evaluation and selection
• Proof-of-concept testing
• Staff training
• Phased migration of workloads
• Post-migration validation

Phase 2: Choosing Your Cloud Provider and Model

Cloud Models Explained

Understanding the basic models will help you make informed decisions:

• Infrastructure as a Service (IaaS): You rent virtual machines, storage, and networking. You manage the operating systems and applications. Examples: Microsoft Azure, Amazon Web Services (AWS).
• Platform as a Service (PaaS): The provider manages the infrastructure and operating system. You manage your applications and data. Examples: Azure App Service, AWS Elastic Beanstalk.
• Software as a Service (SaaS): The provider manages everything. You simply use the software. Examples: Microsoft 365, Xero, Salesforce.

Most Australian SMBs will use a combination of SaaS for productivity tools and either IaaS or PaaS for custom applications.

Key Considerations for Australian Businesses

When evaluating cloud providers, pay attention to:

• Data sovereignty: Does the provider have Australian data centres? For many industries, keeping data onshore is a compliance requirement. Both Azure and AWS have Australian regions (Sydney and Melbourne).
• Latency: Hosting in Australian data centres ensures your users experience fast response times.
• Local support: Does the provider or their partners offer Australian-based support during your business hours?
• Pricing in AUD: Some providers bill in USD, which introduces exchange rate variability into your budget.

Evaluate Total Cost of Ownership

Cloud pricing can be confusing. When comparing options, account for:

• Monthly subscription or consumption costs
• Data transfer (egress) fees, which can add up quickly
• The cost of any additional tools needed for management and monitoring
• Training costs for your team
• The cost of any professional services needed for migration
• Savings from decommissioning on-premises hardware and reducing power and cooling costs

Phase 3: Security and Compliance Planning

Data Classification

Before moving any data, classify it:

• Public: Information you would be comfortable sharing openly.
• Internal: Day-to-day business information that should not be public.
• Confidential: Sensitive business information, financial records, HR data.
• Restricted: Data subject to regulatory requirements, such as personal health information or financial data covered by the Australian Privacy Act.

Compliance Requirements

Australian businesses should consider:

• Australian Privacy Principles (APPs): If you handle personal information, you must comply with the APPs under the Privacy Act 1988.
• Notifiable Data Breaches scheme: You are required to notify the Office of the Australian Information Commissioner (OAIC) and affected individuals of eligible data breaches.
• Industry-specific regulations: Healthcare, financial services, and government contractors may have additional requirements around data handling and storage.

Security Checklist

Ensure your cloud environment will include:

• Multi-factor authentication (MFA) for all user accounts
• Encryption of data at rest and in transit
• Regular security patching and updates
• Access controls based on the principle of least privilege
• Logging and monitoring of access and changes
• A clear incident response plan

Phase 4: Migration Execution

Pre-Migration Steps

• Back up everything: Take full backups of all data and systems before starting. Verify that backups can be restored.
• Communicate with staff: Let your team know what is happening, when, and what they need to do.
• Set up the cloud environment: Provision your cloud resources, configure networking, and set up security controls before migrating data.

Migration Approaches

Choose the right approach for each workload:

• Lift and shift (rehosting): Move the application as-is to a cloud virtual machine. Quickest approach but may not take full advantage of cloud features.
• Replatforming: Make minor adjustments to take advantage of cloud services (for example, moving a database to a managed database service).
• Refactoring: Redesign the application to be cloud-native. Most expensive and time-consuming but offers the best long-term benefits.
• Replace: Retire the old application and adopt a SaaS alternative.

For most SMBs, a combination of lift-and-shift and replace is the most practical approach.

Data Transfer Considerations

For Australian businesses, internet upload speeds can be a bottleneck. If you have large amounts of data to migrate:

• Check your internet plan’s upload speed and any data caps.
• Consider temporary bandwidth upgrades for the migration period.
• For very large datasets, some cloud providers offer physical data transfer devices (like AWS Snowball) that you can ship data on.
• Schedule large data transfers outside business hours to avoid impacting daily operations.

Phased Rollout

Migrate in stages rather than all at once:

1. Start with non-critical systems to test the process.
2. Move to productivity tools and email.
3. Migrate file servers and shared drives.
4. Tackle line-of-business applications.
5. Finally, migrate databases and any remaining systems.

Phase 5: Post-Migration Validation

Testing Checklist

After each migration phase, verify:

• All data has been transferred completely and accurately.
• Applications function correctly in the cloud environment.
• Users can access everything they need.
• Integrations between systems still work.
• Performance meets expectations.
• Security controls are in place and functioning.
• Backup and recovery processes work in the new environment.

Monitoring and Optimisation

Once migrated, ongoing management is essential:

• Monitor costs: Cloud costs can creep up if resources are left running unnecessarily. Set up cost alerts and review spending monthly.
• Right-size resources: After a month or two of real-world usage data, adjust your cloud resources to match actual demand.
• Review security: Regularly audit user access and security configurations.
• Keep training your team: Cloud tools evolve quickly. Invest in ongoing training to ensure your staff can use them effectively.

Common Pitfalls to Avoid

Based on our experience helping Australian SMBs migrate, here are the most common mistakes:

• No rollback plan: Always have a way to revert if something goes wrong.
• Underestimating bandwidth needs: Australian internet speeds vary significantly. Test your connectivity before committing to a timeline.
• Ignoring change management: Technology changes affect people. Invest time in training and communication.
• Skipping the assessment phase: Rushing into migration without understanding your current environment leads to surprises.
• Not reviewing costs post-migration: Set a calendar reminder to review your cloud spending 30, 60, and 90 days after migration.

Getting Started

The best time to start planning your cloud migration is now. Begin with the assessment phase — document your current infrastructure, identify your priorities, and start evaluating providers. Even if your full migration takes several months, getting the planning right will save you time, money, and headaches down the track.

If you need help with your cloud migration planning, an experienced managed IT services provider can guide you through the process and help you avoid common pitfalls. The investment in proper planning pays for itself many times over.