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How to Migrate On-Prem to Azure: Step-by-Step Guide
Plan a successful on prem to Azure migration with proven strategies, Azure tools, best practices, and expert guidance for a secure cloud transition.

How to Migrate On-Prem to Azure: Step-by-Step Guide

4 mins
July 31, 2026
Author
Arunachalam
TL;DR
  • A successful on prem to Azure migration begins with thorough assessment, dependency mapping, and a well-designed Azure landing zone.
  • The right migration strategy varies by workload, helping you balance speed, cost, and long-term modernization goals.
  • Azure migration tools simplify discovery, migration, and optimization, but choosing the right tool is key to reducing risk.
  • Migration is only the first step. Continuous governance, security, and cost optimization help maximize your Azure investment.
  • Have you ever wondered why so many enterprise cloud migrations start with a promise of cost savings? Too often, they end up in budget shocks and migration delays instead.

    The secret answer is a de-risked strategy. Hurrying a migration may create more problems instead of fixing the existing ones.

    In this blog post, we will explain the On-Prem to Azure Migration. We will cover assessing the workload, choosing the migration strategy, creating the Azure landing zone, and phasing the migration process.

    Table of Contents

      What On-Prem to Azure migration means

      On-Prem to Azure Migration involves moving several critical elements. The application software, servers, databases, and IT management are migrated to Microsoft Azure. Your data, identities, and physical machines are moved as well.

      Because of this, your organization’s IT infrastructure is hosted and managed on Microsoft Azure. It no longer runs on in-house hardware.

      Why enterprises are moving to Azure

      With an increase in market demand, businesses have been finding it tough to retain their traditional infrastructure. Azure offers the following benefits.

      • Accelerating Digital Transformation: Traditional data centers have failed to deliver their promise. The market requires solutions that are cloud native, automated, and managed. There is a critical need to be able to develop and introduce applications and features much faster than what can be achieved using the traditional approach. Azure is the platform to use.
      • Scaling and Flexibility: Businesses need to change overnight. Azure boasts unparalleled reach with low-latency capabilities. Azure enables companies to scale their computing, storage, and networking capacity up or down in minutes.
      • Security and Compliance: Security and compliance are high on the priority list for enterprise executives. There are many cybersecurity experts across the world handling the multi-layered security features that Azure possesses. Azure provides more than 100 compliance frameworks like ISO 27001, GDPR, HIPAA, and SOC 2. This will aid in handling data in the financial sector, health care sector, and government sector more effectively.
      • Integration with Microsoft Ecosystems: Most organizations make use of Microsoft products such as Windows Server, SQL Server, Active Directory, Office 365, and Teams. Azure cloud technology perfectly complements these systems. It is easier for the workers to cope with new knowledge, and at the same time, the current licenses are being used within Azure cloud.
      • AI and Data Analytics: Today’s workloads related to AI, analytics, and machine learning require a dynamic cloud platform. Azure provides a comprehensive set of AI services and development tools, helping companies to harness their data.

      Choosing a migration strategy: the migration R's

      An effective On-Prem to Azure migration begins by conducting an evaluation of all the workloads to understand their business value, complexity, and cloud readiness. Enterprise cloud programs typically use the complete set of migration R’s. Using the right approach for each application helps balance speed, cost, and modernization goals.

      Strategy When to use Typical Azure Target Example Scenario Effort/Risk
      Rehost Immediate datacenter exists, strict timelines Azure VMs, Azure VMware Solution (AVS), Azure Managed Disks. Moving a Windows Server 2012 R2 VM running a legacy internal tool to an Azure VM as-is. Lowest
      Refactor Need to reduce OS maintenance, lower licensing costs without altering core code. Azure App service, Azure SQL managed Instance, Azure Container Apps. Moving a .NET web app from IIS to Azure App Service and its backend to Azure SQL Database. Moderate
      Rearchitect Application rearchitecture to become cloud-native applications. Azure Kubernetes Service (AKS), Azure Functions, Azure Cosmos DB. Decomposition of monolithic e-commerce application to microservices in AKS. High
      Rebuild Completely replacing the existing application with a newly developed cloud-native solution. Azure App Service, AKS, Azure Functions. Scrapping a custom legacy incident-tracking desktop app and building a brand-new cloud-native solution on Azure. Very High
      Replace Standard business capabilities (HR, CRM, ERP) can be served better by off-the-shelf cloud solutions. Microsoft 365, Dynamics 365, Azure Marketplace SaaS apps. Retiring an on-premises custom CRM system and migrating users to Dynamics 365 Sales. Low-Moderate
      Retain Keep workloads on-premises due to technical, compliance, or business constraints. On-Premises Datacenter, Azure Arc (for unified management). Keeping a mainframe platform on-premises while extending cloud governance to it via Azure Arc. Zero
      Retire Application is redundant, unused, or provides less business value than its maintenance cost. Not applicable Decommission an unused reporting application. Low
      Open Popup

      Rehost (Infrastructure Level)

      Rehosting, also known as “lift and shift”, involves moving applications to Azure without altering the application code in any significant way. With Azure Migrate, create server and VM replicas on Azure Virtual Machines. 

      Code Changes

      Zero code changes

      Key benefit

      This is the fastest option for data center exits and time-sensitive migrations.

      Refactor (Platform Level)

      Refactoring is used to make selective changes such that the applications can leverage Azure’s managed services without having to rewrite everything. The approach adopted for deployment changes from IaaS to PaaS or container services.

      Code Changes

      Minimal to minor code changes

      Key benefit

      Eliminate OS patching, manual database back-ups, and VM maintenance without rewriting the application core.

      Re-architect (Architecture Level)

      They change the full application’s architecture by taking control of cloud-native services. This is the most flexible approach for the company.

      Code Changes

      Significant code modifications

      Key benefit

      Unlocks maximum cloud-native capabilities.

      Best Practices for Successful On-Prem to Azure Migration

      • It is necessary to perform the evaluation of applications, infrastructure, data, and dependencies before moving to the cloud.
      • A cross-functional team should be developed comprising IT, security, finance, and operations, who are responsible for strategic planning, standardization, and their implementation.
      • An appropriate migration strategy should be chosen for each application, not just one general migration strategy.
      • Identify critical applications and migrate them gradually. Start migrating low-risk applications first.
      • Have the well-architected landing zone for your subscriptions, resource groups, names, tagging, etc., in place before you migrate even one workload.
      • Role-Based Access Control should be used to limit the people who can manage, deploy, or destroy the infrastructure. 
      • Choose the VM size, storage, and networking according to your workloads’ needs to prevent wasting money in the cloud. 
      • Use Microsoft Entra ID, Role-based access control, encryption, and security monitoring to protect your cloud resources.
      • Before transferring any resources to production, ensure that they are working well.
      • There should always be a way to roll back your migration just in case anything fails.
      • Remove unused resources for cost optimization.
      • Train IT teams on Azure services to help them manage and optimize the new cloud environment effectively. 

      Step-by-Step On-Prem to Azure migration 

      Migration of On-premises applications to Azure needs well-planned execution in order to prevent any interruption to business operations. A properly planned On-Prem to Azure migration will reduce any business risk, remove any technical debt, and give immediate cost benefits.

      Step 1: Assessment and Discovery (Laying the Foundation)

      You must be aware of everything about your surroundings and requirements before proceeding with anything further. An inventory should be created for all your applications, databases, servers, storage, and networking. The inventory of IT assets, dependency of applications, business and technical requirements, and migration candidates need to be determined.

      Step 2: Establish the Azure Landing Zone

      Start building the Azure landing zone. A good foundation will avoid costly mistakes. A typical landing zone includes:

      • Management group for enterprise-wide governance.
      • Subscription organized by business unit, environment, or workload.
      • Networking with Virtual Networks, ExpressRoute or VPN connectivity, DNS, and firewall architecture.
      • Identity using Microsoft Entra ID, role-based access control (RBAC), and privileged access management.
      • Policy baseline through Azure Policy, tagging resources, security baselines, and compliance controls.
      • On-premises synchronization of Active Directory to Microsoft Entra ID with Entra Connect.

      Building this foundation first creates consistency across every migration wave.

      Step 3: Migrate workloads in Waves

      Avoid doing one-time data center migrations. Group the workloads into migration waves considering factors like complexity, criticality, and network dependency.

      Begin by migrating a non-critical isolated service (like a staging environment or utility service). This helps to validate your landing zone setup, pipeline automation, replication bandwidth, and process flows without any risk to the core business. After grouping the application using your Azure Migrate map dependencies.

      Every migration wave plan must contain clear, non-negotiable rollback triggers. So even if the pilot migration fails, we can roll back easily and bring it back to the original without any data loss.

      Step 4: Testing

      All migrations must undergo rigorous validation testing before the production team uses Azure. Validation verifies that the software operates properly and performs efficiently. The following tests should be carried out to test functional, performance, load, network connectivity, security, disaster recovery, and failover capabilities. It is necessary to ensure that the on-premises setup remains available as a backup till such time as the migration process gets the stakeholders' approval.

      Step 5: Production Cutover

      Guarantee the integrity of data, performance benchmarks, and continuity of operations via a validation process before shutting down the on-premises servers. Verify that the applications work as expected and are within the set performance benchmarks. The test has to encompass the following types of tests: functional, performance, network connectivity, security, failover tests, and User Acceptance Testing (UAT).

      Step 6: Post-migration Optimization

      Now that the workloads are running in Azure, it’s time to look into excellence in operation, compliance, and savings.

      Connect all your virtual machines, databases, and PaaS services to one Log Analytics workspace. Make use of Azure Monitor and Application Insights for Infrastructure monitoring, thresholds, and application performance from an end-user point of view.

      Make use of Microsoft Defender for Cloud for continuous assessment of your infrastructure from a compliance standpoint. Close public SSH/RDP ports but enable encryption of data at rest and a zero-trust access model.

      Step 7: Optimize Azure resources

      This is not where the journey ends; rather, this is the start. The next step after migration to Azure is optimization of the resources for better performance and efficiency. There are many ways to optimize the resources, which include right-sizing the virtual machines, optimizing the storage tiers, autoscaling, resource monitoring, and eliminating unused resources.

      Step 8: Security management

      The final step in Azure migration is establishing ongoing governance and operations. Daily cloud operations should include security monitoring, backup, and compliance. By doing continuous security monitoring, identity and access management, backup and disaster recovery, Azure policy and governance, and cost monitoring and budgeting, build a secure Azure environment that supports future growth and modernization.

      Azure migration tools, decoded

      Selecting the right migration tool is as important as a migration strategy. Microsoft offers a range of services that focus on discovery and assessment; others specialize in data transfer or database modernization. The table gives a complete understanding of each tool’s purpose.

      Tool What it Does Best For Not For
      Azure Migrate It acts as a major center for finding, evaluating, sizing, and moving infrastructure, databases, and web applications into the Azure platform. Enterprise cloud migrations, data center evacuation, VM/server discovery, and dependency assessment. Business continuity and disaster recovery services (Azure Site Recovery).
      Azure Database Migration Service (DMS) Database migration to Azure with minimum downtime. Minimum-downtime database migration, automated schema conversion, and SQL readiness assessment. Full server or migrations.
      Azure Data Box Physical appliance family (Data Box Disk, Data Box, Data Box Heavy) shipped by Microsoft to load terabytes/petabytes of data offline. Moving massive data volumes (>10 TB) when network bandwidth is limited, slow, or cost-prohibitive. Continuous, real-time file synchronization or small daily data movements under 10 TB.
      AzCopy Command-line tool for high-speed Azure Storage data transfer. Copying files and blobs to Azure Storage. Database or migrations.
      Azure Storage Mover Fully managed hybrid migration service to discover and migrate local NFS or SMB file shares to Azure Storage. Lift-and-shift of large, unmanaged file shares (NFS/SMB) into Azure Files or Azure Blob with minimal downtime. Database engine migrations or continuous real-time bidirectional file sync across locations.
      Azure File sync Synchronizes on-premises Windows file servers with Azure Files. Hybrid storage, branch office file caching, and seamless cloud tiering for Windows File Servers. One-time bulk data transfers without a long-term hybrid storage requirement.
      Azure Migration and Modernization Program (AMMP) Microsoft program offering financial incentives, technical guidance, free tools, and expert partner matching to reduce cloud adoption costs. Large-scale enterprise migration and modernization initiatives Performing the migration itself.

      Clarifying Azure Migrate vs. Azure Site Recovery (ASR)

      It is very tough to select between Azure Migrate and ASR during the migration of the workload.

      Azure Migrate

      Azure Migrate is preferred for discovering, assessing, and migrating servers into Azure. It works well for migration projects. Optimized for discovery, cost estimation, and rightsizing based on the performance history and planned cutovers.

      Azure Site Recovery 

      The goal of this approach is BCDR. The core capability here is workload replication across environments in order to enable fast recovery of applications from downtimes.

      How to move files and data to Azure

      • Plan for an assessment to check file shares, database, and storage requirements before selecting a migration strategy.
      • Use AzCopy (CLI script tool) or Azure Storage Mover (managed service) to transfer file shares (NFS/SMB) and object data over the internet.
      • Next, Azure Storage Mover can be utilized to migrate file shares in bulk from various sources.
      • For synchronization of file data from on-premises Windows file servers to Azure Files, Azure File Sync must be chosen.
      • Azure Data Box should be used for transferring large amounts of data over restricted bandwidth.
      • Validate file integrity after migration by checking permissions, metadata, and data consistency.
      • Monitor transfer progress, resolve errors, and switch users to Azure storage after successful validation.

      Cost, TCO, and Azure-specific savings levers

      Total Cost of Ownership (TCO) in Azure moves beyond simple server replacement to optimize compute, licensing, storage, and operational overhead. Azure works on a pay-for-the-resources-you-use model, so costs are reduced. To lower the total cost of ownership (TCO), right-size virtual machines, remove idle resources, and use managed services where possible. 

      Azure also offers savings by reusing existing Windows Server, SQL Server, and Linux licenses with active software assurance to cut compute costs by up to 80%. Regular cost monitoring with Azure Cost Management and Azure Advisor helps identify optimization opportunities and prevent unnecessary cloud spending. 

      Azure Governance, Security and Compliance

      Enterprise Azure governance relies on automated guardrails, identity controls, and continuous compliance tools to keep workloads secure. Armstrong governance and security are essential for a successful Azure migration. Define management groups, subscriptions, resource tags, and Azure Policy before migrating workloads.

      Encrypt data at rest and in transit and use Azure Key Vault to safeguard secrets and certificates. It uses Microsoft Entra ID (Azure AD) to secure access using zero-trust principles, Conditional Access policies, and Role-Based Access Control (RBAC) to enforce least-privilege permissions. Monitor threats with Microsoft Defender for Cloud and Azure Monitor, and enable backup and disaster recovery for business continuity. Regular compliance reviews help meet industry standards and internal policies while supporting a secure, well-managed Azure environment. 

      Where On-prem to Azure migrations go wrong (and how to de-risk)

      Any migration comes with a lot of challenges. A well-planned On-prem to Azure migration will also fail if the following challenges are not noticed.

      • Incomplete Assessment and Discovery: Skipping the assessment before starting the migration can lead to unexpected compatibility issues and migration delays. To overcome this, conduct a thorough discovery and dependency assessment before migration.
      • Not choosing the right migration Strategy: Applying a lift-and-shift approach to every application may move workloads quickly. But it often misses opportunities to improve performance or lower long-term costs. To overcome this, evaluate each workload individually and choose the right migration strategy using the 7 Rs framework.
      • Ignoring Application Dependencies: Applications often rely on shared databases, APIs, or network services. Carrying out a migration without considering its dependencies can lead to application failures. To overcome this, map application dependencies and migrate interconnected workloads together in carefully planned migration waves.
      • Migrating everything at once: Large-scale, single-phase migrations increase operational risk and make troubleshooting difficult. To overcome this, start with a pilot project, migrate in waves based on dependencies and business priorities, and define rollback for every migration phase.
      • Security and Governance: Delaying governance and security until after migration leaves cloud environments exposed to unnecessary risks. To overcome this, apply role-based access control (RBAC), Microsoft Entra ID, Azure policy, encryption, and continuous security monitoring from the beginning.

      Accelerating migration with AI and the right delivery partner

      AI is changing the way enterprises approach on-prem to Azure migrations by automating time-consuming tasks such as workload discovery, dependency mapping, code analysis, and migration planning. Choosing a migration partner such as Entrans helps in identifying optimization opportunities, estimating migration effort, detecting configuration issues, and generating documentation. 

      • We bring in proven methodologies, technical expertise, and governance throughout the migration lifecycle. 
      • From designing the Azure landing zone and selecting the right migration strategy to validating workloads and optimizing costs after cutover, we help reduce risk and keep projects on schedule.

      So, along with AI-driven automation and expert guidance, we help organizations complete Azure migrations faster. 

      Want to know more about how we handle Azure migrations with greater accuracy, lower risk, and better long-term business outcomes?. Book a consultation call with us.

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      FAQs

      1. How do I migrate from On-premises to Azure?

      Begin with your assessment of the applications, the servers, and their dependencies. Conduct a readiness assessment of your current infrastructure. Pick a migration approach, for example, re-hosting, re-platforming, or refactoring. Use Azure Migrate to discover, assess, and migrate your workloads.

      2. What are the Azure migration strategies?

      Azure uses the 7Rs approach to migration, which consists of Rehost - lift and shift, Replatform, Refactor, which is re-architecting to be cloud native, Repurchase, Retire, Retain, and Relocate. The correct choice of the strategy depends on several factors.

      3. How do I connect my on-premises network to Azure?

      To connect your on-premises environment to Azure, use a site-to-site VPN for secure internet-based connectivity or set up a dedicated Microsoft ExpressRoute circuit. Choose an ExpressRoute circuit for high-speed private connections.

      4. How do I migrate on-premises Active Directory to Microsoft Entra ID (Azure AD)?

      Use Microsoft Entra Connect to synchronize users, groups, and identities from Active Directory to Microsoft Entra ID. For legacy apps needing LDAP or Kerberos, use Microsoft Entra Domain Services. To go cloud-only, adopt Entra ID join and decommission on-prem AD once no app depends on it.

      5. How do I migrate an on-premises SQL Server database to Azure?

      Use Azure Database Migration Service or Azure SQL Migration tools to move databases with minimal downtime. The best target depends on whether you choose Azure SQL Database, Azure SQL Managed Instance, or SQL Server on Azure Virtual Machines. 

      6. Azure Migrate vs Azure Site Recovery: which should I use?

      Use Azure Migrate to plan, assess, and permanently move workloads and databases into Azure. It is the purpose-built hub for discovery, assessment, and server migration. Azure Site Recovery is for disaster recovery, not migration, per current Microsoft guidance.

      7. Can you run Azure on-premises?

      Yes. Using Azure Stack hardware allows you to run native Azure Cloud services and infrastructure inside your own data centers. This allows you to manage hybrid environments with consistent Azure tools and policies.

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      Arunachalam
      Author
      Arun S is co-founder and CIO of Entrans, with over 20 years of experience in IT innovation. He holds deep expertise in Agile/Scrum, product strategy, large-scale project delivery, and mobile applications. Arun has championed technical delivery for 100+ clients, delivered over 100 mobile apps, and mentored large, successful teams.

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