The Business Value of Migrating and Modernising with Microsoft Azure

As organisations face increasing pressure to operate efficiently, respond rapidly to market shifts, and stay ahead of competitors, IT leaders are being challenged to do more with less — without compromising security or scalability. Many are reevaluating how well their existing IT environments can support future growth, as traditional on-premises infrastructure often struggles to keep pace with evolving needs.

This is where Microsoft Azure steps in to help streamline operations, scale resources on demand, strengthen security, and unlock advanced innovation through AI, analytics, and integrations. According to IDC, organisations modernising with Azure can expect three-year discounted benefits averaging US$105.22 million per organisation (about US$2.06 million per migrated and modernised application). That’s a significant positive return, with participants seeing an average ROI of 344%.

Beyond cost optimisation, Microsoft Azure enables organisations to deliver measurable business value. However, the success of any cloud journey depends on how you do it. Understanding how best to conduct Azure migration and modernisation can mean the difference between long‑term success and unexpected complexity.

The Advantage of Modernising with Azure

Before we dive into Azure’s specific benefits, it’s worth acknowledging what organisations are actually dealing with. IT infrastructure that once seemed adequate now lags behind increased demand. Teams are working remotely or in hybrid arrangements, requiring reliable access to applications and data from anywhere. Security threats have become more sophisticated. And perhaps most critically, business leaders need insights faster than traditional systems can deliver them.

These challenges affect organisations across industries every day. From finance directors worrying about infrastructure costs, to IT managers concerned about security vulnerabilities, and executives trying to make data-driven decisions with outdated reporting tools, the implications are real and widespread.

Here’s how Microsoft Azure gives organisations a clear advantage:

Streamlined Operations That Actually Save Money

One of the most immediate benefits that organisations experience with Azure is operational efficiency. When you’re running on-premises infrastructure, you’re essentially managing a small power plant. There’s the upfront capital expenditure (CapEx) for hardware, ongoing maintenance contracts, cooling costs, physical security, and the constant cycle of refresh and replacement.

By migrating to the cloud, businesses can significantly reduce their IT costs while using the latest cloud-based technologies. IT leaders can reduce their spending by striking a balance between on-premises infrastructure and cloud-based solutions. In the case of Azure, cost reductions can reach up to 49% compared to on-premises deployments, freeing up both budget and talent for strategic work.

Cloud platforms enable organisations to switch from a CapEx model to an operating expenditure (OpEx) model, where they only pay for the storage, computation, and bandwidth they use. But the real value extends beyond the pricing model. Your IT team no longer needs to spend time racking servers and troubleshooting hardware failures. Instead, they can focus on initiatives that actually drive the business forward — such as developing new applications, improving user experiences, or finally implementing that AI automation project you’ve been planning.

Scalability That Matches Business Reality

Here are some scenarios: a retail client experiences predictable spikes during the holiday season, or a financial services firm requires extra computing power during month-end processing. With traditional infrastructure, they have two equally problematic options — over-provisioning (and wasting money for 10 months of the year) or under-provisioning (and risking performance issues during critical periods).

Microsoft Azure addresses this by automatically scaling up resources when demand increases and scaling down when it subsides. You’re not making three-year capacity planning decisions based on guesswork. You’re responding to actual demand in real-time. When a marketing campaign performs beyond expectations, your infrastructure supports the surge rather than becoming a bottleneck.

Security That Meets Enterprise Requirements

In conversations with chief information security officers (CISOs) and IT security teams, security capabilities consistently rank among their top reasons for migration. Microsoft now serves 1.4 million security customers globally, with over 900,000 utilizing four or more security workloads, representing 21% year-over-year growth. Azure provides multiple layers of security built into the platform — including encryption at rest and in transit, advanced threat detection, identity and access management through Azure Active Directory, and compliance with major regulatory standards and various local requirements across the Asia Pacific.

By modernising on Azure, you’re positioning your organisation to adopt tomorrow’s innovations without major disruption or reinvestment. For organisations already using Microsoft 365, Azure provides even greater value, enabling more connected collaboration, advanced security insights, and unified management across workloads.

Unlocking the Next Level of Business Value

While cost efficiency, scalability, and security often headline cloud modernisation conversations, the real competitive advantage emerges when organisations begin tapping into Azure’s higher‑value capabilities. Modernising with Azure gives organisations a platform to accelerate intelligence, improve how they use data, and innovate at a pace that traditional environments simply cannot support. Here’s where the real business value emerges:

AI that enhances experiences: Enables automation, predictive capabilities, and more personalised user experiences through services like Azure OpenAI Service and Azure Machine Learning
Analytics that unlock insights: Unifies siloed data and delivers real‑time insights using platforms such as Microsoft Fabric and Azure Synapse, supporting faster, more informed decision‑making
Innovation through cloud-native development: Enables teams to build, deploy, and iterate rapidly with cloud‑native tools – including Azure Kubernetes Service (AKS), serverless computing, and integrated DevOps – reducing time‑to‑market and enabling continuous improvement

The 3 Do’s: Migrating and Modernising with Microsoft Azure

Microsoft Azure empowers organisations to modernise applications, optimise costs, and scale securely — without the constraints of legacy systems and traditional on‑premises environments. To make the most of your migration journey, here are three essential do’s:

1. Do Align Cloud Strategy with Business Outcomes

Successful Microsoft Azure migration initiatives begin with a clear understanding of business objectives, whether to improve agility, enable innovation, or increase system reliability. Organisations can take advantage of:

AI‑powered automation to reduce manual processes.
Real‑time analytics to support faster, data‑driven decisions.
Integrated identity and security controls across cloud and Microsoft 365 environments.

2. Do Assess and Prioritise Workloads

To help maximise ROI while minimising disruption, not all applications should have the same approach to migration and modernisation. Using tools such as Azure Migrate, organisations can evaluate readiness and determine whether applications should be:

Rehosted (lift and shift).
Refactored for Azure app modernisation.
Re-architected for cloud native scalability.

3. Do Design for Security and Governance From Day One

Azure provides powerful security capabilities, but they must be configured correctly to be effective. Establishing governance frameworks early helps protect data, manage access, and maintain compliance while avoiding shadow IT, enabling organisations to:

Implement role‑based access controls (RBAC) to manage permissions effectively.
Enable advanced threat protection and encryption for sensitive workloads.
Set up compliance policies and monitoring to meet regulatory requirements.
Use Azure Policy and Blueprints to enforce governance standards consistently.

Why Microsoft Azure Is a Strategic Cloud Platform for Businesses

In an effort to further reduce barriers to cloud adoption, Microsoft offers up to 100% funding for eligible Azure migration and modernisation projects — helping organisations offset costs related to assessment, migration, and optimisation. With the right partner, organisations can effectively tap into Microsoft’s funding programme to accelerate cloud transformation, keep costs under control, and minimise risk.

In Partnership with AvePoint

As a trusted Microsoft Technology Partner, AvePoint supports organisations across every stage of their Azure journey — from cloud strategy and migration to security, governance, and ongoing optimisation.

Together with Microsoft, AvePoint supports organisations through the Migration and Modernisation Programme, helping them achieve:

Secure and compliant Microsoft Azure data migration.
A clear cloud migration strategy on Azure aligned to business goals.
Maximum value from Microsoft funding initiatives.
Long‑term operational efficiency and resilience.

Learn more and get started today.