Have you ever noticed how a product that once seemed convenient and reliable can gradually start holding a business back? It has to be updated manually for each customer, multiple versions need to be supported, servers have to be monitored, and issues with access, scalability, and data security constantly need to be addressed. And if the system runs as on-premises software, even a small change can turn into a separate project involving approvals, installation, configuration, compatibility checks, and the risk of disruption for users.
Or perhaps you have used such a product yourself: it required installation, depended on a specific device or internal infrastructure, took too long to update, and lacked the flexibility users now expect from cloud-based software. At some point, it becomes clear that the problem is not just a set of technical limitations. The real issue lies in the model itself: the product needs more than an update — it needs a transition to a more scalable SaaS platform.
That is why SaaS migration is not simply about moving an application and data to the cloud. It is an opportunity to transform an outdated on-premises product into a flexible SaaS platform with centralized updates, secure access, scalable infrastructure, and a more predictable subscription-based business model.
This shift is also visible at the market level: according to analysis, the cloud migration services market is expected to grow from $19.28 billion to $143.7 billion by 2035. But this figure reflects more than just growing interest in cloud infrastructure. It shows that companies are increasingly looking for a well-planned migration strategy that allows them not merely to move an old system “as is,” but to turn it into a flexible, secure, and commercially sustainable SaaS solution.
In this article, we will explain how to prepare your application for SaaS cloud migration, choose the right migration strategy, safely transfer data to a cloud environment, and go through the entire migration process.
What Is SaaS Migration and How Does Cloud Migration Fit In?
SaaS migration is not just a “move to another server.” It is more like moving a product into a new operating model. If an application used to run on on-premises infrastructure, required installation, manual updates, and separate support for different customer environments, migration can help turn it into a SaaS platform: accessible via the internet, centrally updated, scalable, and ready for a more flexible business model.
SaaS Migration vs General Cloud Migration
General cloud migration usually answers the question: “How do we move applications and data to cloud infrastructure?” In other words, a company may transfer servers, databases, or individual services to the cloud to reduce its dependence on internal infrastructure and make resource management easier.
SaaS migration goes further. It is not only about moving the application, but also about adapting it to the SaaS model: planning user access, tenant management, data security, updates, monitoring, customer support, and, for commercial products, billing or subscription logic. Simply put, cloud migration helps an application move to the cloud, while SaaS migration helps it become a full-fledged SaaS solution.
When Businesses Migrate from On-Premises to SaaS
Companies usually decide to migrate to SaaS when the old model becomes too heavy to maintain: software licenses and servers are expensive to support, updates are difficult to release, scaling is inconvenient, and customers already expect access to the SaaS through a browser without installation or lengthy setup. At this point, SaaS migration becomes more than a technical step — it becomes a way to make the product more convenient for users, easier to maintain, and more sustainable for the business.
Benefits of SaaS Migration for Your SaaS Business
The main value of SaaS migration is not simply that an application “moves to the cloud.” The real impact appears when the product becomes easier to develop, maintain, scale, and sell. Instead of spending resources on servers, manual updates, separate installations, and support for different versions, a company gets a more manageable SaaS platform where changes can be rolled out centrally, and users can access the product via the internet.
For the business, this means less technical routine and more room for growth. The team can release new features faster, onboard customers more easily, better control data security, and gradually move from one-time software licenses to a subscription-based business model.
| Before SaaS migration | After SaaS migration |
| The product is installed and updated separately for each customer | Updates are rolled out centrally for all users |
| Scaling depends on on-premises infrastructure | Resources can be scaled flexibly in a cloud environment |
| Internal IT spends a lot of time supporting servers and different versions | Support becomes easier, while the cloud provider takes over part of the infrastructure workload |
| Revenue often depends on one-time software licenses | The business can move to a recurring subscription model |
| Product access is limited by a device, network, or local installation | Users can access the SaaS through a browser or cloud interface |
Benefits of SaaS Migration
How SaaS Migration Changes the Business Model
SaaS migration affects not only the technical side of a product, but also how a company sells, supports, and develops it. In the on-premises model, a product often works as a one-time purchase: the customer buys a software license, installs the solution in their own environment, and then receives updates, support, or new versions separately. In the SaaS business model, the logic is different.
Customers pay not for a one-off installation, but for ongoing access to a service that is regularly updated, operates reliably, and remains secure; therefore, companies are switching to SaaS not only because of the limitations of legacy on-premises infrastructure, but also because this model enables them to scale their product more quickly, adjust pricing more flexibly, and better adapt to users’ needs.
Are You Ready for SaaS? Key Signs Before You Migrate
A move to SaaS should not start with choosing a cloud provider or deciding which platform to launch on. The first question should be different: is the product itself ready for the SaaS model?
If the migration is rushed, the company may simply bring old problems into a new cloud environment: complex architecture, weak security, messy integrations, inconvenient user access, and expensive support. In that case, the application may technically move to the cloud but still behave like the old on-premises system.
A product may be ready for SaaS when its current on-premises infrastructure starts limiting growth. Updates take too long, supporting different customer environments consumes too many resources, and scaling becomes expensive or difficult. Another strong signal comes from users: if customers expect online access without installation or lengthy setup, the old model may no longer fit.
SaaS readiness is also about business processes. In the SaaS model, a company does not simply sell software; it provides continuous access to a service. That means pricing, customer onboarding, support, SLAs, updates, security, and the product roadmap should be planned before migration begins.
SaaS Migration Strategy: Choosing the Right Migration Path
A SaaS migration strategy is not just a list of technical steps. It answers a more important question: how can you move to SaaS without breaking the product, losing data, or interrupting users’ work?
There is no universal migration path. One company may need to migrate as quickly as possible because its old on-premises infrastructure has become too expensive to maintain. Another company cannot risk disruption because thousands of customers use the product every day. A third one may need to deal with technical debt, security, and compliance first, and only then move the application to a cloud environment.
That is why a good migration strategy starts with choosing the right approach: move the system almost “as is,” gradually adapt it to cloud platforms, or completely redesign the architecture for a SaaS application.
Rehost, Replatform, or Refactor: Common Migration Approaches
One common migration approach is rehost, also known as lift and shift. This is the fastest option: the application is moved to the cloud with minimal changes. It works well when a company needs to leave old infrastructure quickly. But it is important to understand that this approach rarely turns a product into a full SaaS solution.
Replatform is a more balanced option. The application is not rebuilt from scratch, but it is adapted to cloud services. For example, the team may change the database, improve deployment, add monitoring, or use managed services.
Refactor is the deepest approach. Here, the application is seriously redesigned: the architecture, user logic, data management, scalability, and security may all change. This takes more time and investment, but it is often the right path for companies that want to build a strong SaaS platform, not just move an old system to the cloud.
Single-Tenant Migration Model
A single-tenant migration model means that each customer gets a separate environment: a separate database, infrastructure, or even a dedicated server. This approach can work well for companies that handle sensitive data, have strict security and compliance requirements, or serve customers in regulated industries.
The main advantage of the single-tenant model is a high level of isolation and control. The downside is that it is harder and more expensive to maintain because each environment has to be managed separately.
Single-Tenant and Multitenant Migration Strategies
A multitenant model is usually more cost-effective and easier to scale: several customers use the same SaaS platform, while their data remains logically separated. This is convenient for a growing SaaS business where it is important to onboard new users quickly and release updates centrally.
Single-tenant gives more isolation, but it also requires more resources. So the choice is not about which option is “better.” It depends on the product, customers, budget, data security requirements, and future scaling plans.
Phased Migration vs. Big Bang Migration
Another important decision is whether to move everything at once or migrate step by step. Big bang migration may look faster: the whole system moves in one large release. But the risk is also higher. If something goes wrong, the disruption can affect all users at once.
Phased migration is usually safer. The company can move applications and data in parts, test each stage, fix issues, and move toward SaaS incrementally. This approach is especially useful for complex products where it is important to keep the service stable and maintain customer trust during the transition.
SaaS Migration Plan: Step-by-Step Migration Process
The SaaS migration process should not be seen as one big “move.” It is better to treat it as a series of controlled steps. First, you analyze the current system. Then, you choose the architecture, plan data migration, implement the new SaaS platform, and only after that launch the product for users.
Step 1. Assess the Existing On-Premises Software
The first step is to honestly assess the existing on-premises software.
You need to understand how the architecture works, where the data is stored, which integrations are already in place, what user roles exist in the system, and which parts of the product cause the most problems.
This is often the stage where technical debt becomes visible: outdated code, complex dependencies, weak performance, security gaps, or logic that no one has touched for years. It is better to find these problems before migration than to move them into a cloud environment together with the application.
Step 2. Choose a Cloud Provider and SaaS Platform Architecture
After the audit, you need to choose a cloud provider and define the future SaaS platform architecture.
It may be AWS, Azure, Google Cloud, or another cloud platform. The choice depends on your budget, security requirements, scalability needs, regions, integrations, and available cloud services.
It is also important to decide what to use: IaaS, PaaS, managed services, or a combination of them. For example, platform as a service can speed up the launch because the provider takes care of part of the infrastructure tasks.
The main point is not to choose cloud infrastructure just because it is popular. It should fit your product and your future SaaS business.
Step 3. Plan Data Migration and Moving Data to the Cloud
Data migration is one of the most sensitive stages.
Before moving data to the cloud, you need to understand which data is really needed, what can be cleaned up, how the data is connected, and which data is critical.
You should also plan backups, encryption, access controls, and ways to protect sensitive data in advance. If moving data is poorly planned, the company may face data loss, system errors, or problems with security and compliance.
Step 4. Implement the New SaaS Platform
Once the plan is ready, the team can start implementing the new SaaS platform.
This is where the product gets features that are usually missing in an old on-premises system: tenant management, subscription logic, convenient user access, APIs, integrations, monitoring, and scaling mechanisms.
At this stage, the product gradually becomes a new SaaS platform, not just an old application hosted on new servers.
Step 5. Test, Deploy, and Support SaaS After Migration
Before launch, it is important to test not only the product features, but also load, security, integrations, performance, and failure scenarios.
You also need a rollback plan. If something goes wrong, the team should know how to quickly restore the system and keep it working.
After deployment, the work is not over. A successful migration includes user training, monitoring, support, feedback collection, and further product improvement. To properly support SaaS after migration, the company needs to prepare the processes, team, and infrastructure for continuous platform development.
How SCAND Helps You Move to a SaaS and Complete Cloud Migration
SaaS migration is rarely just a technical transfer. More often, it is the point where a product needs to be carefully reviewed: what should stay, what should be improved, what needs to be redesigned, and what should no longer hold the system back.
In projects like this, SCAND helps companies do more than simply “move an application to the cloud.” We guide the whole process with a clear understanding of both the product and the business behind it — from analyzing the current legacy system to launching a stable SaaS platform. Our team reviews the architecture, data, integrations, risks, and security and compliance requirements, then helps choose a migration strategy that fits the product in practice, not just on paper.
Our relevant experience includes:
These case studies show that, for SCAND, it is not just the act of migration or modernisation that matters. The key thing is that, following these changes, the product becomes easier to support, more stable in operation, and better equipped for growth.
