Moving to the Cloud? 5 Costly Mistakes SMBs Make - and How to Avoid Them

The cloud promises flexibility, scalability and predictable costs. But for many small and mid-sized businesses, a rushed or poorly planned migration delivers the opposite: higher bills, security gaps, frustrated employees and compliance risks.

At Info Advantage, we’ve seen the difference between cloud done right and cloud done wrong. These are the five most expensive mistakes SMBs make when moving to the cloud - and how to avoid them.

Mistake #1: “Lift and Shift” Without Optimization

Simply copying on-prem servers into the cloud feels safe - but it’s usually the most expensive approach.

Why it hurts:
Cloud resources are billed continuously. If servers run 24/7 but are only used part-time, you’re paying for wasted capacity.

Avoid it by:

• Right-sizing resources based on actual usage

• Shutting down dev/test environments after hours

• Using cloud-native services instead of self-managed servers (like Microsoft 365 instead of an email server)

Bottom line: Optimize for how your business actually works, not how your servers used to.

Mistake #2: Ignoring Compliance and Data Regulations

Not all data can live just anywhere.

Healthcare, finance, government contracting and privacy laws like HIPAA, PCI-DSS and GDPR impose strict rules on how data is stored, accessed, and protected.

Avoid it by:

• Identifying regulated data before migration

• Choosing compliant cloud platforms

• Implementing required controls like encryption, access logging, and proper agreements

Fixing compliance mistakes later costs far more than doing it right up front.

Mistake #3: Underestimating Internet & Bandwidth Needs

Once apps and files move to the cloud, your internet connection becomes mission-critical.

Common symptoms:

• Slow file access

• Laggy cloud apps

• Dropped video calls

• Employee frustration

Avoid it by:

• Calculating bandwidth needs based on users, apps, and file sizes

• Upgrading connectivity before migration

• Adding redundancy so a single outage doesn’t halt operations

Mistake #4: Forgetting the Human Side of Change

Cloud migrations don’t fail technically - they fail when people aren’t prepared.

What goes wrong:

• Productivity drops

• Workarounds appear

• Help desk tickets explode

• Morale suffers

Avoid it by:

• Communicating changes early and clearly

• Training employees by role

• Providing extra support during go-live

• Phasing migrations instead of changing everything at once

Technology only delivers value when people know how to use it.

Mistake #5: Assuming the Cloud Provider Handles Security

Cloud security is a shared responsibility.

Your provider secures the infrastructure. You secure your data, users, permissions, and configurations.

Avoid costly breaches by:

• Enabling multi-factor authentication

• Using least-privilege access

• Encrypting data

• Monitoring activity

• Training employees on cloud security risks

Many cloud breaches happen because security settings were misconfigured — not because the platform failed.

Is the Cloud Right for Your Business?

Cloud makes sense when you need flexibility, remote access, scalability, or predictable monthly costs. It may not be ideal if workloads are highly stable, internet access is limited, or legacy applications can’t move.

For many SMBs, a hybrid approach delivers the best balance.

The Info Advantage Approach

Successful cloud migration isn’t a weekend project. It’s a phased process that includes:

1. Assessment & planning

2. Quick wins (email, collaboration, storage)

3. Optimized application migration

4. Ongoing cost, performance and security tuning

Done right, cloud migration improves reliability, security, and business agility - without surprise costs.

The Takeaway

Most cloud failures come down to five avoidable mistakes:

• No optimization

• Missed compliance requirements

• Insufficient connectivity

• Poor user adoption

• Misunderstood security responsibility

With the right planning and the right partner, the cloud becomes a growth tool - not an expensive lesson.

If you’re considering a move to the cloud, Info Advantage can help you do it strategically, securely and cost-effectively.