Retire Strategy of Cloud Migration

Introduction

In the spectrum of 6R cloud migration strategies, the 'Retire' decision plays a crucial role in streamlining and modernizing the IT portfolio.

As we delve into this aspect, following our explorations of rehosting, replatforming, repurchasing, rearchitecting, and retaining we focus on the strategic retirement of obsolete or redundant applications.

This guide will contextualize the retirement of software within the larger cloud migration journey, emphasizing its importance in achieving a leaner, more agile enterprise environment.

📚 Related: Cloud Migration Software

What is "Retire" in cloud migration?

Application retirement and software sunset are synonymous terms that describe the phase of the cloud migration process where certain applications or software are selected to be deactivated and no longer used.

This phase aligns with the 'Retire' strategy in cloud migration and involves evaluating the IT portfolio to determine which systems are outdated, no longer needed, or cost-prohibitive to maintain.

The objective is to streamline operations by rationalizing those applications that do not serve a strategic business purpose or would not benefit from a move to the cloud. 

📚 Related: Data-driven Cloud Transformation

Identifying candidates for retirement

Determining which applications and software to retire is an essential part of optimizing your cloud migration strategy. This involves a thorough analysis of the current IT portfolio, evaluating the usage, costs, and business value of each application.

• Outdated legacy systems: These are systems that may be running on deprecated technology or no longer align with the business's technical requirements. For example, a legacy customer database that doesn't support real-time updates may be retired in favor of a modern cloud-based solution.
• Redundant applications: When multiple tools serve the same purpose, it's often more cost-effective to consolidate functions into a single platform. An example might be retiring an old email marketing tool in favor of a comprehensive marketing platform that includes email capabilities.
• Underutilized software: Applications that are seldom used or have a minimal impact on business processes are candidates for retirement. For instance, a bespoke reporting tool may be retired if a newer ERP system includes superior reporting features.

📚 Related: Cloud Migration Assessment

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The retirement process

Similar to what we explain in the application rationalization guide, the retirement of applications and software is a phase that must be handled with precision to protect data integrity and maintain organizational operations.

1. Data preservation

Before any application is decommissioned, it's imperative to have a comprehensive data preservation strategy in place.

For instance, if an old project management tool is being retired, project data, historical information, and critical records should be migrated to a new system or archived in a secure, accessible manner that complies with data retention policies.

2. Communicating changes

Effective communication is key to a smooth retirement process. It's essential to prepare internal and external users for the change by explaining the rationale behind the retirement, the benefits it brings, and how the transition will be managed.

For example, if you're retiring an internal file-sharing service, you need to inform users well in advance and provide training on the new platform.

3. Phasing out services

A phased approach helps mitigate risks associated with sudden service cessation. By incrementally reducing the old system's usage and slowly ramping up the new service, users have time to adapt.

In the case of retiring an old email system, you might start by moving a small group of users to the new platform and gradually increase the number until all users have transitioned.

4. Revoking access and licenses

The final stage in the retirement process is to ensure that all access to the retired software is cut off and that any associated licenses are terminated. This step is important for security and compliance reasons and helps to manage costs.

If specialized design software is being retired, you must ensure that all user accounts are deactivated and that any subscriptions or maintenance contracts are properly closed.

📚 Related: Application Rationalization Questionnaire

Benefits of retiring applications

From all possible cloud migration benefits, the strategic advantages of retiring applications include:

• Simplified IT landscape: Reducing the number of applications simplifies management and maintenance, leading to a leaner IT operation.
• Cost reduction: Eliminating licenses, support, and infrastructure for outdated applications can result in substantial cost savings.
• Security improvements: Fewer applications mean a smaller attack surface, enhancing the overall security posture.
• Resource reallocation: Resources previously tied to maintaining and supporting retired applications can be redirected to more value-adding activities.
• Enhanced performance: By retiring legacy systems, performance can be improved across the IT estate by focusing on optimized cloud services.

📚 Related: Are the Benefits of Application Migration Becoming Cloudy?

Challenges in application retirement

Navigating application retirement involves carefully managing several cloud migration challenges:

• Data migration complexities: Transferring data from legacy systems to new platforms can be fraught with risk. It's essential to have a robust data migration strategy, often involving specialized tools or services, to ensure data integrity and completeness. For example, when retiring an old HR system, all historical employee records must be accurately migrated to the new system.
• User resistance: Users often develop a comfort level with existing applications, and the prospect of change can be met with apprehension. Effective communication and training are crucial to ease the transition and address user concerns.
• Legacy integration dependencies: Many legacy applications serve as the backbone for various business processes. Disentangling these can require a thorough analysis of workflows and the development of new integrations to ensure business operations continue smoothly.
• Compliance and legal considerations: Legal requirements for data retention can complicate the retirement of applications. Ensuring compliance necessitates a clear understanding of these laws and implementing appropriate archival solutions or policies.

By addressing these challenges with a strategic approach, you can retire applications with minimal disruption to their operations.

Life after retirement: Managing the transition

Post-retirement management ensures that your organization continues to function effectively without the retired applications.

• Continuity planning: Develop strategies to maintain business operations without the retired applications, which might include transitioning to new cloud services or redistributing functions among existing applications.
• Data archiving: Implement data archiving solutions that ensure long-term accessibility and compliance with regulatory requirements.
• Monitoring impact: Closely monitor the operational impact of retirement to quickly address any issues that arise and ensure that business processes remain uninterrupted.

📚 Related: Critical Role of Enterprise Architecture in Cloud Migration

Conclusion

Retiring applications is a decisive step in refining and modernizing an organization's application portfolio during cloud migration.

It streamlines resources, focuses on value-generating tools, and aligns IT infrastructure with current business strategies.

This guide has provided a comprehensive overview of how to approach the retirement of applications, emphasizing strategic decision-making and careful planning to ensure a smooth transition.