Mastering SaaS Migration Strategy for Success

“Transitioning to a SaaS business model today is about future-proofing your product and leveraging opportunities for significant growth. The transition won’t be easy: you must be ready to embrace a more agile and customer-centric approach so that your product continuously delivers value to your subscribers. However, if your SaaS concept can effectively satisfy specific customer needs, I suggest exploring this business model — because the future of software products is SaaS.”

— Nata Shved, COO at Brights

Microsoft, Adobe Creative Cloud, and Slack are the definition of SaaS success stories today, but they actually switched to this business model along the way. Why? Well, a SaaS migration strategy opens a very compelling opportunity for businesses. This way, they can reduce upfront costs, be more agile in response to market demands, and leverage recurring revenue streams thanks to a subscription-based pricing model.

So, if you have a traditional application, how do you make it into a SaaS app? That’s what this article is all about: migration strategies, challenges, examples to learn from, and tips from our expert team.

If you wonder why the latter is valuable, here is a brief recap: our company has been providing SaaS development services for 13+ years. Our expertise includes consulting SaaS companies, building SaaS products from scratch, optimizing existing ones, and migrating traditional apps. Keep reading to learn our team’s recommendations on embracing the SaaS business model.

Should your business migrate to SaaS?

Switching from a traditional application to a SaaS business model is a very alluring opportunity. Firstly, it has allowed a lot of businesses to grow exponentially. Secondly, with a subscription-based model, you’ll have a continuous and predictable stream of monthly and yearly revenue. Moreover, as you expand your business, you can hire more employees and introduce additional value-added services common for SaaS, such as dedicated support, consulting, implementation services, etc.

However, before you decide to implement SaaS migration, you need to determine whether it’s truly a suitable strategy for your business. Moving to a SaaS business model is not a smooth process — it requires considerable changes to both the product and your company’s strategy and mindset. Here is a checklist of green flags that indicate it makes sense for you to make the shift:

Indicators that your business is ready for migration to SaaS.

• Market demand: You see a growing interest in flexible, subscription-based services among your target users.

• Strategic readiness: Your business is ready to adapt its financial, marketing, legal, and product development strategies to align with the SaaS model.

• Scalability: Your business is prepared to invest in a scalable infrastructure that can handle increased user load.

• Customer value: You know how to continuously enhance your product in order to provide ongoing value that justifies recurring payments for users.

• Customer support capacity: You have the resources to provide ongoing customer service and support.

• Compliance: Your business is equipped to handle the regulatory and compliance requirements of SaaS.

• Technology fit: Your existing technology and infrastructure can be adapted to a cloud-based, subscription-driven model.

Further in the article, we’ll get into more detail about how to prepare for the upcoming changes, so if this list doesn’t discourage you — keep reading.

How to migrate a traditional app to SaaS?

Today, migrating to SaaS is a strategic imperative for businesses that want to stay competitive. However, it involves a lot of planning, testing, and continuous optimization. This guide on how to migrate to SaaSwill help you understand the process better — just follow the steps below.

SaaS migration process when implemented by Brights

Step 1: Review your application's architecture

The first of the SaaS migration steps is to evaluate your application's architecture and infrastructure and analyze potential obstacles. This will help you plan the migration strategy. 

Think of how the components of your system will integrate into the cloud environment and how they convert to the cloud services. For example, a common LAMP stack (Linux, Apache, MySQL, PHP) may be converted to AWS services in the following way:

• Amazon EC2 — hosting

• Amazon RDS — database management

• AWS Elastic Beanstalk — application deployment

Tip: The choice of cloud providers you will use depends on what tools you already utilize. For example, organizations that are deeply integrated with the Windows ecosystem will find it easier to migrate to Azure since it is basically the same environment.

Step 2: Create your migration strategy

Any strategy underlines the business objectives. Think of what your business goal is: 

• Performance enhancement for faster response times, higher system reliability, and reduced latency;

• Scalability for the ability to compute high user demand, manage traffic spikes, and minimize downtime;

• Cost cutting for more efficient resource allocation.

Once you have prioritized your business goals, it's time to decide on the SaaS migration approach. In simpler words, is your infrastructure ready to migrate as it is, partially, or does it have to be completely redesigned with cloud-native components? The approach will depend on the answer.

Step 3: Set up your cloud environment

Working with a cloud environment will be a significant part of your SaaS technology foundation. Setting up an AWS, Azure, or GCP environment, configuring security settings, and supplying necessary services always require an expense. Ensuring your cloud environment meets security and performance standards is extremely important. This is why most organizations rely on a cloud computing expert to set them up. 

In this case, Brights is a reliable partner in empowering your cloud potential: cloud computing, DevOps, and IT support. Our team of experts will handle your SaaS migration to the cloud while maintaining high compliance and security standards. 

“When choosing a cloud service provider, we recommend considering the two factors.

The first one is complexity and scalability. You need a provider that offers flexibility in resource utilization and the ability to scale depending on your business needs. Hybrid solutions can be practical as they allow you to use both private and public cloud environments.

The second one is cost and contract terms. Providers usually offer various pricing plans, which may include discounts or special offers, so be sure to review these terms carefully if you want to optimize expenses.”

— Oleksandr N, DevOps engineers at Brights

Step 4: Migrate your data securely

Planning your data migration is the only way to maintain the safety and integrity of your application. Follow these steps to make sure your data transfer goes smoothly:

• Estimate data size and network bandwidth;

• Use AWS Snowball, Azure Data Box, or Google Transfer Appliance for large-scale data transfers;

• Explore hybrid approaches to hosting data (companies with high-risk data protocols usually prefer storing sensitive data on-premise and other databases on the cloud);

• Continuously monitor the data transfer process and optimize performance using cloud monitoring tools like Amazon CloudWatch, Google Cloud Operations Suite, or Azure's Monitor.

Step 5: Launch your application on the cloud

After transferring data onto the cloud environment and making sure the migration process went seamlessly, it's time to launch your SaaS application. This process will take several steps:

1. Install infrastructure components. Set up basic infrastructure components like load balancers, VPCs, and security groups. Create an auto-scaling group of EC2 (AWS) instances behind an Elastic Load Balancer to ensure application availability.

2. Set up dependencies. Configure web servers and databases to support your SaaS application. 

3. Deploy configuration files and code. By using automation tools like AWS Elastic Beanstalk or CloudFormation, you can simplify the deployment process and ensure correct resource provisioning.

4. Verify functionality. Test your application to make sure all features function correctly, and communication with the databases and external services is well-established. 

Step 6: Test and optimize performance

In this phase, focus on ensuring maximum performance for your SaaS application. Begin by checking for functionality, stability, and compatibility across various system components. Mimic different user scenarios to ensure a seamless experience.

Once you identify issues, address all performance blocks, compatibility issues, or functional inconsistencies. Optimize your code, streamline database queries, and allocate resources efficiently to ensure your application works flawlessly.

A crucial part of this phase is scalability and load testing. Try high-user traffic scenarios to evaluate your application's scalability. You can use tools like AWS Load Testing services or Apache JMeter to measure your application's response.

Step 7: Switch traffic to the cloud

Switching traffic to the cloud is another important step toward ensuring your SaaS application completely transitions from on-premise to the cloud environment. This step allows you to gradually shift users to the new setup, minimizing the risk of disruptions.

To successfully switch traffic to the cloud, we suggest following this routine:

• Gradually redirect traffic through DNS configuration;

• Closely monitor performance metrics like latency and error rates;

• Use tools like AWS Route 53, Azure Traffic Manager, or Google Cloud DNS to manage the transition;

• Implement a phased approach to allow for real-time adjustments and minimize risks;

• Continuously monitor and test all dependencies, including third-party services and APIs;

• Ensure all components work seamlessly in the new cloud environment;

• Continue post-migration monitoring to detect any issues that may arise.

Step 8: Ensure resilience

It is imperative to implement backup and recovery procedures, monitor logs and metrics for anomalies, and optimize resource usage.

Following the steps above, you can smoothly migrate your SaaS application to AWS, Azure, or any other cloud platform. However, what is even more important is to set up your SaaS infrastructure in a way that would benefit your business most. Read on to find out how Brights.io can help you leverage your digital potential for your business advantage.

Compliance and security as the biggest challenges of SaaS migration

While you cannot deny the benefits, organizations should take several challenges of SaaS migrations into account. The most critical of them are compliance with regulations and data security.

Challenges of SaaS migration

SaaS development solutions often involve storing data across multiple vendors, requiring organizations to comply with different governmental regulations such as GDPR, HIPAA, and PCI DSS. Making a business comply with all those requirements can be extremely difficult and time-consuming, yet implementing advanced security measures can help achieve compliance. 

Concerns regarding data security arise from the online nature of cloud solutions, which SaaS applications heavily rely on. Organizations must carefully evaluate cloud providers and enforce additional measures (data encryption, access controls, and regular security audits) to protect their sensitive data from potential breaches. We asked one of Brights’ experts how our team approaches security when migrating software to the cloud. 

“We face serious challenges in data security when we migrate to the cloud. To solve them, we use a comprehensive approach that includes compliance with OWASP standards while working on development and architecture. All solutions undergo vulnerability testing using OWASP ZAP and static code analysis. Access to the database is restricted through a special access letter, and access keys are stored only in ENV variables.

Our processes are set up in accordance with ISO 27001 requirements, and we have the corresponding certificate. This includes well-defined backup policies, a Business Continuity Procedure, and a Security Risk Management Procedure, among others. Additionally, all updates are scanned for vulnerabilities before release, and if new CVEs are discovered, we react immediately.”

— Kostiantyn S, QA engineer at Brights

Our engineer also shared that to ensure a timely response and thorough investigation of potential incidents, we employ a complex system of logging, monitoring, and notifications. Our setup includes:

• Cloudflare Web Application Firewall to monitor and block suspicious traffic;

• Zabbix for monitoring server indicators;

• Logging of all security events, including authorization and termination of privileged user sessions;

• Application change logging, in particular, to save all user actions in the administrative panel (CRUD);

• Sentry for collecting and monitoring errors in the front and backend components of the application;

• Firebase Crashlytics for monitoring errors in mobile applications.

When triggers are activated, notifications are automatically sent via Slack, Google Chat, and email. To prevent resource overuse, we configure triggers to alert us during high system loads.

As you see, there are many security aspects to deal with during cloud migration for SaaS, but with an experienced team, all of them are manageable.

Is your business ready for SaaS migration?

Before starting a SaaS migration journey, businesses should ensure they are ready for the change and transition. While preparing your IT infrastructure is a major part of the process, the changes go far beyond that. So, let’s extend the checklist we’ve gone through at the beginning of this article and see if you’re truly ready for SaaS migration.

Is the market accepting? 

In the beginning, your primary task would be to evaluate market demand for SaaS solutions and assess customer preferences. For this, we recommend conducting thorough market research to understand industry trends and your competition.

Here are some of the factors you will have to consider:

• Customer demand. Reach out to your existing customers, send out surveys and forms, and conduct interviews. This will help you understand your customers' needs and determine if it is the right time for you to migrate. 

• Industry trends. Monitor your industry for a shift toward SaaS and cloud-based services. If your competitors are moving in that direction, this indicates market acceptance.

• Scalability and flexibility needs. Assess whether your industry increasingly prioritizes scalability and flexibility, which are core benefits of SaaS adoption. If so, this might be the right time to transition.

Is your IT infrastructure ready?

Moving to a SaaS business model means you will have to deal with increased infrastructure demands due to higher user loads and security standards since you’ll potentially be handling sensitive customer data. This means that before the migration, you must evaluate your current systems and lay a strong infrastructure basis. Here is what this might include:

• Upgrading servers, increasing bandwidth, or adopting cloud-native technologies that can support the scalability and flexibility SaaS requires;

• Ensuring your infrastructure can handle increased user loads, provide reliable uptime, and maintain high performance;

• Implementing advanced security measures to protect user data, such as strong encryption protocols, firewalls, and compliance with relevant regulations like GDPR or HIPAA;

• Deciding between a single-tenant or multi-tenant architecture. Single-tenant is ideal for large enterprises that need dedicated resources, while multi-tenant offers cost-efficiency and scalability for standardized solutions targeting smaller businesses.

Sometimes, the process may get really complicated, especially if the architecture of the existing application is unsuitable for scaling and SaaS in cloud migration. We suggest turning to a tech team with experience in both SaaS development and cloud computing in the beginning for a consultation. This way, you can evaluate the migration complexity and budget needed and make a well-thought-out decision based on that.

Is your business ready?

Before transitioning to a SaaS model, you need to assess whether your business is ready for the change. Start by analyzing the costs involved, including upfront migration expenses, ongoing operational costs, and expected revenue growth. This financial planning should align with your chosen SaaS model and the competitive landscape in your industry. 

Additionally, we recommend evaluating your organization's capacity to support and maintain SaaS solutions, considering factors like staffing, training, service level agreements (SLAs), and customer support. Keep in mind that while the ability to scale quickly is a significant advantage, it also demands continuous updates and financial investments. Therefore, it's essential to plan meticulously for ongoing product development.

You can also use questions from the AWS-suggested approach for evaluating your readiness for the SaaS migration:

Source: AWS

Why choose Brights as your dedicated migration partner

Testimonial from our client, Michael Alan, founder of Showcase

Throughout our 13+ years of building software as outsourced partners, SaaS products have been one of our main areas of work. So, if you’re looking for a reliable tech team to migrate your product to a SaaS business model, here are a few reasons to consider Brights:

• Our company has 100+ bright minds on board, including a strong team of DevOps engineers who know how to migrate your product to AWS, GCP, Azure, Heroku, and other trusted cloud providers.

• Brights has worked with various B2C and B2B SaaS products, including horizontal solutions that serve diverse users, vertical SaaS tailored to specific sectors, packaged SaaS platforms, and collaborative SaaS apps.

• We know how important it is for SaaS companies to build trustworthy relationships with customers by ensuring security, so we make it our priority as well. Brights has ISO/IEC 27001:2013 certification, and we also help our clients get necessary security certifications when needed. In fact, for one of our recent SaaS projects, we helped our client pass an exhaustive security audit and obtain SOC 2 Type II certification for security, availability, and confidentiality.

• At Brights, we care about implementing projects that can bring real value to our clients and be worth their investments. If the project doesn’t seem viable, we’ll be upfront with you from the start. But if its potential is backed by our research, we’ll accumulate all our expertise to make your project shine.

Whether you need your technical team enhancement or SaaS consulting, we're committed to delivering solutions that meet your business needs. 

Conclusion

We won’t deny that migrating a traditional application to a SaaS business model is lengthy and complicated — you saw that from the step-by-step instructions. Yet we still believe that for businesses with a solid, useful product, it’s a remarkable opportunity to expand. By shifting to SaaS, you can facilitate the continuous evolution of your application, attract new customers, and increase revenue, making it more stable and predictable.

If you decide to explore this opportunity further and implement SaaS migration, don’t hesitate to reach out to our team. From shaping your company’s strategy with a business analyst to getting your application’s infrastructure prepared for the migration, we are here to support you throughout this equally complex and exciting journey.