Migrating between software platforms is a significant decision that requires careful planning, security evaluation and contractual awareness.

Businesses and practices should proactively consider data portability, security risks, compliance and operational impact when managing a migration. They need to ensure a smooth transition while maintaining control over data and digital infrastructure.

Ian Pay, ICAEW’s Head of Data Analytics and Tech, believes that when choosing a new piece of software, it isn’t just about its functionality. “Figuring out how you will move from your existing solution to the new one is just as important, if not more so, as a failure to grasp this important part of the process can lead to a failure to fully realise the benefits of the new solution,” he says.

There are several key steps to take before starting the migration process to avoid complications and unnecessary costs.

Check migration feasibility

While many software providers offer free migration assistance to ease the transition, businesses should evaluate migration feasibility before signing a contract. Understanding data portability, system dependencies and migration processes upfront can help prevent costly, time-consuming complications further down the road.

It’s sometimes worth doing a trial phase to simulate the migration with a limited dataset. This can help to assess the technical feasibility and potential challenges of moving data at scale before committing fully to a platform.

Review contract terms

Once a provider is selected, businesses must scrutinise the terms of the contract. Vendor lock-in risks can be significant; some software as a service (SaaS) solutions impose proprietary data formats that could complicate future migrations.

Make sure that data can be exported in widely usable formats. Review notice periods, renewal terms and auto-renewal clauses, and any penalties for early termination or price increases.

Implementation and setup costs can be substantial. Some providers may require long-term commitments to recoup initial investments. Negotiating a trial period can mitigate the risk of being locked into an unfavourable contract.

Optimise data protection

Assess the provider’s security protocols, such as penetration testing and monitoring, to detect vulnerabilities and ensure data protection. Review encryption and data protection measures to ensure compliance with GDPR and other regulations.

Robust access controls and multi-factor authentication are essential to protect against unauthorised access. Even when using third-party software, businesses are still responsible for regulatory compliance, so reviewing the provider’s security certifications, such as ISO 27001, Cyber Essentials, or PCI-DSS (Payment Card Industry Data Security Standard), is vital.

Pay adds: “Too often data is an afterthought when migrating systems, when really it should be part of the conversation before contracts are even signed. Don’t be afraid to ask difficult questions of your potential new provider to get the guarantees you need around your data. If they really want your custom, they will be more than happy to answer them.

“Remember, customers, clients and regulators have little sympathy for blaming issues with data accessibility, or worse a data breach, on third-party providers.”

Ensure your people are well trained

Don’t ignore the operational planning element of software migration. Ensure your employees are trained on the new software to minimise disruption. Ongoing support should be provided to help with adoption.

Clear communication about changes is essential for ensuring all stakeholders are on the same page.

Cloud-based software is continuously updated, which can be both beneficial and risky. Make sure you understand the frequency and nature of these updates to assess their impact on existing integrations and workflows. Know the critical features for your business and that of your clients, as any unexpected changes to those features could cause disruption.

Understand the timeline

Some providers offer grace periods with read-only access after cancellation, while others cut off access immediately. Establish a clear process for exporting historical data before the contract is terminated. Consider the risks of software discontinuation, particularly with smaller providers. A software escrow agreement can provide an extra safeguard.

Get a clear service level agreement (SLA)

SLAs define a provider’s commitments to uptime and performance. Evaluate historical uptime and reliability metrics to ensure the platform meets operational needs. Review compensation terms for service outages and develop contingency plans for potential disruptions.

Back up your data

Finally, backup and disaster recovery processes are critical to mitigate data loss risks. Understand the software provider’s backup frequency, whether real-time, hourly, daily or weekly. Get restoration timeframes to determine how quickly data can be recovered in case of failure. Review data ownership to clarify whether the provider retains backups post-contract or if the business is solely responsible for that.

By considering these factors carefully, businesses can navigate the complexities of software migration, ensuring a smooth transition and minimising disruptions and costs.

Useful links

Sign up to attend ICAEW’s free online event this Friday, Navigating core system change, which will explore successfully delivering changes to core systems.

For a deeper dive into software migration, read ICAEW’s updated cloud computing guide.