As we soar into 2023, cloud migration and modernization are taking center stage in the world of IT, transforming businesses like never before. Based on Microsoft’s latest research, the global cloud computing market value is expected to reach a staggering $1,240.9 billion by 2027, and for a good reason.

Further, the COVID-19 pandemic accelerated the demand for cloud services, proving the crucial role platforms like Azure, Microsoft 365, and Microsoft Teams play in elevating organizational capabilities. Gartner’s 2023 CIO and Technology Executive Survey confirms this trend, with 46% of organizations increasing their spending on application modernization and 50% investing more in cloud platforms while reducing expenses on legacy infrastructure.

So, now more than ever, enterprises must recognize the significance of cloud migration and modernization to stay ahead in this ever-evolving landscape. But why is this migration trend so important for organizations in the first place? Let’s check it out in detail.

Why Embracing Cloud Migration and Modernization is Imperative for an Organization’s Growth

Leveraging technology in today’s fast-paced business world is crucial to staying ahead of the competition and fostering growth. Fortunately, cloud migration and modernization are here to revolutionize the game, offering exciting ways for organizations to enhance efficiency and drive innovation.

Let’s see why businesses must embrace this transformative trend, complete with illustrative examples:

  • Reliability: Cloud vendors like Microsoft Azure offer service-level agreements guaranteeing 99% uptime, with responsibility for backups and disaster recovery. An example is the Under Armour Connected Fitness platform. Their migration to the cloud resolved their data center reliability challenges.
  • Fast Implementation: Cloud computing enables development teams to optimize and accelerate workflows, fostering rapid digital innovation. For example, after migrating to the cloud, Capital One, a prominent bank in the US, reduced its development environment build time from months to minutes.
  • Availability: Cloud-based applications offer global access, enabling remote work and increasing employee flexibility through Microsoft 365 and Microsoft Teams.
  • Cost Reduction: Cloud migration eliminates the need for expensive server equipment and maintenance, reducing operational expenses. Emirates, for example, expects to save $1 million annually after fully retiring its outdated hardware to the cloud in 2020.
  • Scalability: Cloud-based workloads enable organizations to respond quickly to peak demands and lower capacity when needed. Yedpay, a payment platform, reduced costs by 40% after migrating to the cloud.
  • Security: Top cloud providers consistently upgrade their services to comply with the latest industry standards and regulations, reducing the risk of cyberattacks. Gartner predicts that up to 99% of cloud security failures through 2025 will be the customer’s fault.

Now, let’s jump into 2023’s most anticipated cloud migration and modernization trends.

Trends in Cloud Migration and Modernization in 2023

2023 is proving to be a watershed moment for cloud migration and modernization (M&M) as businesses worldwide embrace digital transformation.

Moreover, organizations are now prioritizing strategy over hasty adoption due to a newly found conviction in the benefits of the cloud, thus generating more interest in cloud-only architectures. That said, here are some exciting trends in cloud M&M that will shape the future of enterprise IT:

  1. Diversity in cloud workloads: The scope of workloads migrating to cloud-based infrastructures in 2023 is expanding, ranging from systems management, data analytics, and server virtualization to security, marketing, sales, and data management.
  2. Cloud-only strategies: Designing and using a cloud-only architecture has emerged as a leading strategy in 2023. Companies are increasingly phasing out hybrid models and moving towards exclusively cloud-based infrastructures, with sustainability initiatives driving this trend.
  3. Rise in multi-cloud and hybrid solutions: Multi-cloud solutions, which utilize a diverse range of cloud infrastructures from different providers, are gaining popularity due to their ability to offer the best of each provider without being tied to unnecessary services or complexities. This approach also mitigates the impact of disruptions from a single provider.
  4. Migration of non-mission critical operations: With the successful first wave of cloud M&M, the priority in 2023 shifts to relocating non-mission critical processes. These are systems management, data analytics, and server virtualization.
  5. Increased migration to public clouds: Public cloud end-user spending is projected to reach a staggering $591.8 billion in 2023, averaging $151 per employee. Companies will increasingly utilize public clouds for enhanced revenue creation, profitability, scalability, and disaster recovery.
  6. Conviction in cloud benefits: Businesses are more convinced than ever of the transformative power of cloud technologies, recognizing their ability to maintain security and compliance, enable lightweight flexibility for scaling, and protect against catastrophic disasters.
  7. Strategy-driven cloud M&M: Companies now place cloud M&M strategies at the forefront of digital transformation, acknowledging that a carefully mapped-out plan is crucial for a successful transition.
  8. On-premise infrastructure continues: While cloud-only strategies gain traction, investments in physical infrastructure persist, particularly in countries like China, India, Australia, and New Zealand. Businesses still favour cloud-dominant infrastructures but are realistically two to three years away from complete migration.

What is Pushing Migration and Modernization Forward at Such a Rapid Pace?

Well, we have several driving forces responsible for the rapid pace of migration and modernization, thus changing how businesses operate and compete today. These key factors include:

  • Cloud benefits: Businesses recognize the advantages of migrating to the cloud, with solutions like Microsoft Azure offering agility, scalability, and enhanced security.
  • Rapidly maturing technology: With a growing pool of cloud computing experts and increasing trust in cloud vendors, it’s the perfect time to leverage cloud-based services like Microsoft 365 and Microsoft Teams.
  • Cloud-only strategies: As cloud-based architectures become more viable, businesses aim to adopt cloud-only models, supporting both operational efficiency and sustainability initiatives.
  • Increasing market demands: Customers expect minimal downtime and constant updates, driving businesses to adopt agile technologies through cloud migration and modernization.
  • Diverse cloud workloads: Organizations now migrate a wide range of workloads, emphasizing the strategic importance of cloud FinOps in maximizing business value.
  • Strategy-driven approach: Companies understand the need for a well-planned roadmap to implement cloud migration and modernization successfully.

To sum up, by leveraging cloud migration and modernization, organizations can seamlessly unite legacy on-premises data with cloud customer data, offering a holistic view of their operations and empowering them to stay ahead of the competition.


Looking toward the future, it’s clear that cloud migration and modernization will continue to revolutionize the IT landscape in 2023 and beyond. Therefore, by migrating to the cloud and modernizing existing infrastructure, organizations can implement new strategies that offer scaling and profitability opportunities while managing non-mission-critical tasks. At Softlanding, we are experts in providing custom Microsoft solutions that match unique needs. We offer assistance for Azure cloud services and infrastructure modernization, enhancing digital transformation for businesses. Connect with us today for effective and secure cloud navigation.

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Softlanding is a long-established IT services provider of transformation, professional services and managed IT services that helps organizations boost innovation and drive business value. We are a multi-award-winning Microsoft Gold Partner with 13 Gold Competencies and we use our experience and expertise to be a trusted advisor to our clients. Headquartered in Vancouver, BC, we have staff and offices in Toronto, Montreal and Calgary to serve clients across Canada.

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