7 Steps to a Successful Cloud Migration
February 21, 2024
Last Updated: July 3, 2025
Read Time: 7 minutes
Data & Governance
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Investment firms that successfully undergo digital transformation can strategically position themselves to support new investment products, meet rising customer demands, and deliver exceptional customer experience.
Moving to a cloud-based system — one that provides data management, analytics, and reporting — will deliver benefits of scale, reduce costs, optimize efficiency, and maximize opportunities in a diverse global market.
Firms that accelerate their data modernization efforts will be better situated to effectively meet their technology needs, now and into the future. To enhance efficiency and support growth, investment firms will benefit from embracing a mindset focused on technology that offers greater possibilities for advancement.
Generating and acquiring more data creates new challenges and opportunities.
Sophisticated data management capabilities paired with cloud-native, unified infrastructure drives cost savings, enhanced data management, and better performance through operational efficiency. A comprehensive strategy also reduces the chance of errors, lowers operational and execution risk, and protects against the pitfalls of reputational risk.
An operational infrastructure that works best for your firm requires many complex decisions. A proper match of technology to goals will ensure your tech stack meets your firm’s requirements and addresses your comfort level for risk as business grows. It will also unlock the full potential that accurate and real-time data can offer.
The adoption of cloud-based technology marks an inflection point for the industry. As investment management firms of all sizes adapt to the digital world, we’ve identified 7 steps to help migrate your systems:
Investment firms can enable a smooth integration and strong connectivity by developing a comprehensive migration plan. Planning ahead, open and direct communication, robust testing, and continuous monitoring are key to achieving successful integration outcomes.
Once you settle on a migration approach, collaborating with a cloud data platform partner will allow your firm to design a separate yet parallel data migration strategy that works in harmony with your legacy systems migration strategy. A healthy migration strategy will include a detailed outline of the approach, tools, and processes to successfully transfer data.
A strong and detailed project plan and strict project governance will help ensure effective execution. Defined scope, with objectives and deliverables, helps project teams stay focused and aligned, and also serves to track progress, identify dependencies, and manage resources.
A phased approach can enhance efficiency and help achieve long-term sustainability through tailored solutions:
Teams often struggle to accommodate unexpected changes. It is important to control unreasonable revisions to project scope to stay on track with allocated budgets, minimize delays, and ensure overall quality of deliverables is not compromised.
A detailed strategy and clear roadmap outlining the project’s steps, tasks, and timelines will keep the project focused and aligned. At this stage, it’s useful to conduct an honest and comprehensive assessment of your existing investment operations infrastructure and identify legacy systems and applications suitable for migration to the cloud.
As more investment firms move through the migration process to maximize the benefits of cloud-based systems, it’s not unusual to hear of problems that lead to failed implementations such as prolonged migrations and runaway costs. Staying focused on clear goals and best practices are key to avoiding pitfalls.
Partnering with an experienced vendor that brings the breadth of knowledge and experience to work with varied and complex file formats will alleviate many of the problems associated with managing data.
Aligning project team members on milestones and end-goals is crucial to a smooth transition. Maintaining open communication during the transition from the vendor’s project teams to your firm’s ongoing relationship management teams will further build confidence and certainty in the overall success of the project.
Training empowers the team. The importance of training cannot be overstated, as rigorous training will empower your teams to use the platform’s interface and understand the workflows vital to their specific roles.
The sheer number of differences in how data is curated and formatted can present multiple challenges. Make sure your data platform provider has the expertise to handle complex data structuring and can build a data migration strategy that minimizes data loss, as well as formatting and quality issues.
Once your firm has implemented a phased approach in coordination with migration partner, moving from the parallel phase into the production phase should be seamless. In the parallel phase, your partner will run the new system, applications, and processes in a business-as-usual manner. In this phase, they will also address issues that arise before your firm goes live on the new system.
To ensure a successful go-live, it’s a good idea to establish what success means. In partnership with your vendor, create a success criteria list that covers business-as-usual activities such as confirming trade files are received, trades are booked, or that end-of-day P&L is complete and signed off on.
The challenge
An investment firm with $10 billion AUM sought a solution to integrating disparate systems, including areas such as order management, accounting systems, and cash management. The client also wanted to integrate and migrate third-party data to a cloud-based system.
The end goal
Arcesium worked with the client to migrate the firm’s multiple legacy service providers onto one, cloud-based platform and also integrate data sources and feeds that would support the firm’s complex requirements.
The result
Arcesium succeeded in helping the client simplify how they manage trades, positions, and securities through a unified platform that enriches data across accounts.
The technology landscape and tools the industry uses are undergoing rapid change as requirements for managing and using data become even more complex. Investment firms will need to prepare by ensuring their data management systems are optimized for full productivity. In addition, they’ll need to learn new tools and think about new systems that have better data proficiency.
Sophisticated platforms can handle complex financial models and provide real-time risk calculations, helping investment managers assess and manage risk exposures more effectively.
Investment firms that successfully undergo digital transformation are better positioned to support new investment products, meet rising customer demands, and deliver scalable, superior customer experiences. The ability to harness more data, from more sources, in less time — and empowering users to collaborate and analyze data in different ways — leads to increased operational efficiencies, better decision-making, improved innovation, and world-class customer interactions.
For more details on planning a successful migration read Arcesium’s Best Practice Guide: Migration to Modern Technology Platforms.
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