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SaaS Migration: Steps, Best Practices, & Common Pitfalls To Avoid
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May 05, 2025
Not all upgrades require a full reset, but some do.
As technology becomes central to how businesses operate, many are discovering that their old, on-premise systems are no longer keeping pace. Legacy tools may still function, but they often limit agility, inflate costs, and create roadblocks to innovation.
That’s where SaaS migration comes in. The process of moving from self-hosted software to cloud-based, subscription-driven platforms that are built for speed, scale, and simplicity.
In this guide, we’ll break down the SaaS migration process step by step, from strategy and planning to execution and optimization. You’ll learn what to consider before migrating, and how to avoid common missteps. Let’s explore!
What Is SaaS Migration?
Software as a Service platforms (SaaS) migration is the process of transitioning software applications from traditional on-premise infrastructure to cloud-based SaaS. Instead of buying licenses and hosting software on local servers, companies move to subscription-based tools that are accessed online and maintained by third-party providers.
But SaaS migration isn’t just about where the software lives. It’s about how it works.
This shift often involves rethinking your system architecture, updating integrations, modernizing data flows, and adapting internal processes. The goal isn’t simply to “move” applications, but to optimize how they’re delivered, maintained, and scaled in a cloud-first environment.
There are typically two types of SaaS migration:
- Platform migration: Replacing an on-premise tool with a SaaS alternative (e.g., moving from a self-hosted CRM to Salesforce).
- Application re-architecture: Rebuilding or adapting internal applications to function as SaaS products, often to improve scalability, reduce technical debt, or serve customers more efficiently.
For many businesses, SaaS migration is the first real step in a broader digital transformation and the foundation for a more agile, scalable, and resilient IT ecosystem.
Why SaaS Migration Is Critical
There’s a reason so many companies are rethinking the way they use software right now: it’s getting harder to compete with yesterday’s tools.
Legacy systems might still run, but they weren’t built for speed, scale, or the way people work today. They require too much upkeep, move too slowly, and can’t easily keep up with changing demands. That’s why SaaS migration is no longer just a “tech project,” it’s a key move for staying relevant in 2025 and beyond.
Here’s why it matters now more than ever:
Move faster
SaaS platforms push updates automatically. No waiting on IT teams or delayed version releases. According to Flexera's 2024 State of the Cloud Report, 67% of enterprises report faster access to new features as one of the main benefits of SaaS adoption.
Teamwork from anywhere
With remote and hybrid work models now the norm, SaaS enables secure, location-independent access. Gartner estimates that by 2025, 70% of new enterprise applications will be developed using cloud-native platforms, designed for distributed access from day one.
Free up your IT team
Maintaining servers, updating software, and fighting fires? SaaS takes that off your plate. Your IT team can finally shift from maintenance mode to strategy mode, supporting growth instead of patching systems.
Scale without stress
Need to onboard quickly or expand to a new region? SaaS scales on demand. McKinsey reports that companies using cloud-based platforms can reduce time-to-market by up to 40%, giving them a measurable edge in fast-moving markets.
Security is built in
Today’s SaaS providers take security seriously. Most offer compliance with standards like GDPR, HIPAA, or SOC 2 by default, and they often have dedicated development teams monitoring for threats around the clock.
SaaS Migration Strategy
A successful SaaS migration begins long before any data is moved or systems are shut down. It starts with a comprehensive strategy, one that connects your business goals, technical constraints, internal processes, and user needs into a single, actionable plan.
Without this foundation, migration can quickly become chaotic: tools don’t integrate, timelines slip, costs rise, and teams lose trust in the new system.
Here’s how to build a SaaS migration strategy that keeps your rollout aligned, on budget, and worth the effort.
Define business objectives
Not every SaaS migration has the same purpose. Are you trying to reduce costs? Improve system speed? Simplify compliance? Scale faster?
Start with a clear answer to this question:
What does success look like for this migration, in business terms?
For example:
- Goal: Reduce IT maintenance costs by 30%
→ Implication: Choose platforms with vendor-managed security, updates, and uptime SLAs.
- Goal: Enable remote access for all employees
→ Implication: Prioritize tools with built-in mobile support and identity management.
When business goals shape technical decisions, your migration becomes easier to justify, measure, and manage.
Conduct a full system and data audit
Before you can migrate anything, you need to know exactly what you're working with.
A system audit should cover:
- Applications currently in use (including shadow IT)
- User roles and access levels
- Data formats, volumes, and storage locations
- Key integrations between platforms
- Dependencies between legacy systems
At this stage, many teams are surprised by how many systems are outdated, duplicated, or unused, which can open the door to simplification as well as migration.
→ Pro tip: Use this moment to clean up your stack. Migration is a rare opportunity to reduce tech debt and remove redundant tools.
Identify your migration model
Not all migrations are created equal. Depending on your timeline, risk tolerance, and internal capacity, different approaches may suit different systems.
Here are four common SaaS migration models:
- Big bang: Migrate everything at once. High impact, higher risk. Best for simple systems or startups with lean stacks.
- Phased rollout: Break migration into functional units (e.g., HR tools first, CRM later). Safer for large or heavily integrated environments.
- Parallel migration: Run old and new systems side by side for a period. Helps reduce downtime and supports gradual adoption.
- Hybrid approach: Migrate some systems while integrating others. Useful when legacy tools must remain for compliance or business continuity.
Each model comes with trade-offs. Phased and parallel migrations are slower but safer; big bang rollouts are faster but can fail hard if mismanaged.
Align internal stakeholders early
SaaS migration isn’t just an IT project. It affects nearly every department. Key stakeholders typically include:
- IT (infrastructure, architecture, security)
- Finance (cost modeling, ROI tracking)
- Operations (workflow alignment)
- Compliance (regulatory risk, data governance)
- End users (the people who actually use the software)
Involve these groups early, not just in testing but in shaping the migration plan. Their input will uncover edge cases, prevent surprises, and drive faster buy-in.
Build a realistic timeline
Migration always takes longer than expected. Build in contingency time for:
- Vendor delays
- Internal testing
- User training
- Data cleanup or reformatting
- Downtime, if applicable
Set clear milestones with measurable checkpoints — not just technical progress, but business impact (e.g., “80% user adoption within 60 days”).
Also, consider seasonality, avoid migrating critical systems during peak sales cycles or fiscal close if you can help it.
Define success metrics
You can’t improve what you don’t measure. Define KPIs before the migration starts, and track them closely during rollout.
Examples include:
- Reduction in support tickets
- Increase in system uptime
- User satisfaction scores
- Time saved on internal processes
- Cost per user or transaction
- Number of integrations maintained or replaced
These metrics won’t just prove the migration was worth it, they’ll guide optimization efforts once the system is live.
Create a communication & training plan
A migration that catches users off guard is doomed to fail, even if technically perfect.
Develop a rollout communication plan that includes:
- Training materials (guides, videos, webinars)
- Scheduled demos or preview sessions
- Internal FAQs and support channels
- Feedback loops to gather user concerns early
The more your people understand the “why” and “how” behind the change, the more likely they are to embrace it.
A strong SaaS migration strategy is as much about people and process as it is about platforms. The more planning you do upfront around goals, systems, models, and teams, the less friction you'll face later.
And remember: SaaS migration isn’t just about switching tools. It’s about modernizing how your business operates.
Best Practices For SaaS Migration
Even with a solid strategy in place, SaaS migration is rarely frictionless. Success doesn’t just depend on your technology choices — it depends on how you prepare, execute, and support the change across your business.
Below are key best practices that leading organizations follow to reduce risk, maximize ROI, and ensure long-term adoption.
Start with a detailed system audit
Before migrating anything, get full visibility into your current environment. Many migrations go sideways because teams underestimate:
- The number of tools currently in use (especially “shadow IT”)
- How are those systems interconnected
- The quality, structure, and ownership of their data
Conduct a complete audit of:
- Active software and licenses
- User roles and permissions
- API integrations and custom workflows
- Data silos and duplication risks
This will help you determine what should be migrated, restructured, retired, or replaced, and which dependencies need to be preserved.
Tip: Use this phase to streamline your software stack. SaaS migration is the perfect time to reduce redundancy and technical debt.
Choose the right SaaS architecture
Not all SaaS platforms are created equal, and the architecture you choose will have long-term implications.
The three common SaaS models are:
- Single-tenant: Each customer has their own dedicated instance. Offers more control and security but can be more expensive and harder to scale.
- Multi-tenant: Multiple customers share the same environment. Easier to manage and scale, but customization and data isolation may be limited.
- Hybrid SaaS: A mix of both, allowing you to segment certain functions or data sets for higher control while leveraging shared resources for scalability.
Choose based on your industry’s compliance requirements, your need for customization, and the expected growth or complexity of your user base.
Prioritize security and compliance from day one
Security should be built into the migration plan, not bolted on at the end.
Ask your SaaS vendors:
- Are you certified for GDPR, SOC 2, HIPAA, or other relevant standards?
- How is data encrypted in transit and at rest?
- What’s your incident response and recovery plan?
- Internally, work with your compliance or legal teams to:
- Map out data flow and jurisdiction (especially if operating globally)
- Update internal policies around access control, data ownership, and acceptable use.
- Set up audit trails and activity logs before launch.
Note: A common mistake is assuming the SaaS provider handles everything. Many still require your configuration for proper security and compliance posture.
Build a dedicated migration team
Migration is not a side project. Appoint a cross-functional team that includes:
- A technical lead (owns infrastructure/integration)
- A business lead (ensures alignment with objectives)
- A change manager (oversees communication, training, adoption)
- A data owner (validates data integrity and structure)
Make this group accountable for tracking milestones, resolving blockers, and acting as liaisons to broader departments. SaaS migrations succeed when they are collaborative, not siloed in IT.
Run controlled pilot tests before full rollout
Before flipping the switch for everyone, test your SaaS setup in a controlled environment.
Start with a small user group or business unit. Measure:
- Speed and usability
- Integration stability
- Data accuracy
- User sentiment
Use this feedback to make adjustments before company-wide deployment. A well-executed pilot builds confidence and catches issues you’d rather not discover later.
Prepare a communication and change management plan
Technology change without user support fails, even when the migration is technically flawless.
Build a communication plan that includes:
- A clear explanation of why you’re migrating
- A timeline of when changes will occur
- Pre-launch training (live or self-serve)
- Ongoing support (dedicated channels, help center access, office hours)
Also, assign internal champions across departments who can guide others and collect feedback.
Insight: According to Prosci, projects with effective change management are 6x more likely to meet or exceed objectives than those without.
Document everything
SaaS makes deployment easier, but configuration and operations still need structure.
- Ensure you document:
- User roles and permissions
- Data flows and ownership
- Integration logic and API credentials
- Backup and rollback procedures
This ensures you’re not dependent on just one person or team to maintain the system post-migration.
When done right, SaaS migration lays the foundation for a faster, more flexible, and future-ready organization. But skipping key steps like proper architecture selection, pilot testing, or user training can turn a strategic move into a costly disruption.
Common Challenges in SaaS Migration
SaaS migration may seem like a one-time, straightforward move, but ask anyone who's gone through it, and they'll tell you: it’s rarely smooth sailing. Despite the clear benefits, organizations often face hurdles that can delay the project, increase costs, or cause frustration among users. Being aware of these challenges upfront can help you prepare and navigate through them with minimal disruption.
Here are the most common challenges you’re likely to face during SaaS migration and actionable insights to tackle them:
Data Loss Risks
Data is the backbone of your business, and losing it during migration is a nightmare no one wants to face. Whether it’s missing customer records, corrupted files, or incomplete data transfers, the consequences of data loss can be significant.
→ How to mitigate it:
- Pre-migration testing: Verify data integrity before moving anything.
- Backup everything: Create a full backup before you begin, including system settings, customizations, and critical data.
- Use trusted migration tools: Leverage platforms and tools designed for secure, efficient data migration.
- Test post-migration: Verify that all migrated data is intact and functional.
Legacy System Integration Difficulties
Migrating to SaaS doesn’t mean starting from scratch, most organizations need to keep certain legacy systems in place. Whether it’s for compliance, specialized operations, or third-party software dependencies, getting your legacy systems to work with the new cloud tools can be tricky.
→ How to overcome it:
- Plan integrations early: Identify all integration points and prioritize them during the planning phase.
- Use middleware or API connectors: Many SaaS platforms offer APIs, and middleware tools can help bridge gaps between old and new systems.
- Test integrations in the pilot phase: Ensure that data flows correctly and that the new system works alongside legacy tools before going live.
Downtime and Business Disruption
One of the biggest concerns during SaaS migration is disruption to day-to-day operations. Even a few hours of downtime can lead to lost sales, missed deadlines, or frustrated employees.
→ How to minimize downtime:
- Choose the right migration model: A parallel migration (where both old and new systems run side by side) helps minimize business disruption.
- Schedule migrations during low-traffic periods: Migrate systems over weekends or during off-peak business hours.
- Clear communication: Notify all stakeholders in advance about downtime and expected disruptions. Set up contingency plans in case something goes wrong.
User adoption resistance
Even the best technical migration can fail if users aren’t on board. Employees used to their old systems may resist the new tools, especially if they don’t see immediate benefits or find the new systems hard to use.
→ How to encourage adoption:
- Involve users in the process: Get feedback from key teams during the pilot stage. Tailor the migration to address their pain points.
- Offer hands-on training: Provide comprehensive training and resources — think webinars, tutorials, and support guides.
- Appoint internal champions: Identify “SaaS champions” in each department who will encourage others to embrace the change.
Unexpected Costs
While SaaS is often seen as a cost-saver, unexpected costs can still crop up. These include:
- Higher subscription fees as your user base grows
- Overbuying licenses or underutilizing tools
- Integration and customization expenses
→ How to manage costs:
- Choose a flexible subscription model: Look for vendors offering tiered pricing that grows with your company.
- Monitor usage: Use software asset management tools to track how often employees are using the new tools, and eliminate unused licenses.
- Plan for scalability: Keep in mind that the cost will increase as your business scales, make sure your SaaS provider offers the flexibility you need.
Vendor Lock-in and Limited Customization
Once you’re in, getting out can be difficult. Some SaaS vendors are notorious for making it hard to switch systems or integrate with other platforms.
→ How to avoid lock-in:
- Evaluate long-term flexibility: Ensure your vendor allows for future integrations and customizations.
- Keep data ownership: Choose a provider that offers data portability, so you can easily transfer your data to another system if needed.
- Negotiate flexible contracts: Ensure your contract allows for scaling, termination, and changes in pricing.
Conclusion
Migrating to SaaS isn’t just a technical move. It’s a pivotal step in future-proofing your business. With the right strategy, it can lead to improved efficiency, reduced costs, and faster growth. However, success depends on meticulous planning, clear goals, and ongoing support.
The journey from legacy systems to modern SaaS solutions doesn’t have to be overwhelming. At BHSOFT, we specialize in legacy transformation services that seamlessly integrate the latest technologies into your operations, including SaaS migration. Our experienced team works with you at every step, ensuring that the transition is smooth, secure, and aligned with your business needs.
If you’re ready to modernize your systems and leverage the power of the cloud, contact us today. We’ll help you transform your IT infrastructure and build a foundation for future success.
