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Higher Ed Cloud Migration: Why Schools Must Act Now

| December 06, 2024

Technology

Colleges and universities face mounting pressure for higher ed cloud migration to modernize their technology infrastructure. As technology rapidly reshapes the expectations of students and faculty, colleges and universities can no longer rely on outdated systems that limit agility and growth. Higher ed cloud solutions are no longer just an option—they are a strategic necessity for schools aiming to stay competitive, maintain financial sustainability, and uphold high standards for data security in education. Cloud computing in universities empowers institutions to strengthen their foothold in today’s fast-paced and competitive higher education landscape, aligning with broader education technology trends that prioritize agility and scalability.

Positioning Higher Education for the Future

The transition to the cloud is more than a technological upgrade; it is an opportunity to rethink and streamline critical systems and processes. Legacy systems, often built decades ago, hinder progress with inefficiencies and high maintenance costs. By transitioning to modern higher ed cloud solutions, schools can unlock greater efficiencies, reduce upkeep expenses, and free up resources to drive innovation—invigorating IT teams to take action and embrace the future.

In contrast, cloud computing in universities enables real-time data access, supporting faster decision-making and more efficient resource allocation. Many SaaS in education platforms come equipped with analytics and reporting tools that offer actionable insights, allowing colleges to make data-driven, strategic decisions. This approach supports the institution’s long-term performance and strengthens its reputation. The demand for digital transformation in universities has steadily increased, with recent studies showing that 88% of colleges have already moved over a quarter of their applications to the cloud.

However, the path to the cloud can present challenges. As Associate VP, Finance, Allison Huggins, from Polk State College explained, “Transitioning to the cloud was a significant step forward for our institution. Integrating with Transact's payment solutions was straightforward and efficient, but we faced a learning curve in other areas of the migration. Our experience reinforced the importance of working with trusted partners who understand the complexities of higher education to ensure a smooth and successful transition.” Huggins’ experience underlines the importance of selecting the right partner for higher ed cloud migration. 

Cloud Adoption Challenges in Higher Ed

One reason many schools hold onto legacy systems is their customization. These systems often allow for highly tailored processes that meet specific campus needs, giving institutions a sense of control over their operations. However, this comfort can become a double-edged sword. While familiar, these processes may be inefficient and maintaining them requires constant updates and significant IT resources, especially when system-wide updates are implemented.

As schools move toward standardization with modern systems, there may be initial resistance due to the perception of losing control. Yet, standardization offers significant advantages, such as reducing inefficiencies, streamlining operations, and enabling IT teams to focus on innovation rather than upkeep. Addressing this resistance early on by involving stakeholders and highlighting the long-term benefits can help institutions transition smoothly and embrace the opportunities that modern systems provide. Despite these challenges, the shift to cloud-based technology offers transformative benefits that streamline operations, reduce costs, and position institutions for future growth.

Core Benefits of Cloud for Universities:

  • Cost Savings
    Legacy systems are both costly and labor-intensive. In contrast, SaaS in education models offer a more cost-effective solution by reducing the need for physical infrastructure and establishing predictable, subscription-based costs. This shift allows colleges to allocate resources more efficiently, turning large capital expenses into manageable operational costs. Additionally, higher ed cloud-based solutions include regular upgrades, providing access to the latest software without hidden fees.
  • Automatic Updates and Reduced IT Workload
    SaaS solutions are designed with automatic updates, relieving IT teams from routine maintenance and freeing them to focus on high-value projects. Legacy systems with extensive customizations require continual updates to ensure compatibility with newer releases, increasing the risk of errors. In comparison, SaaS in education solutions streamline this process, allowing IT departments to operate with increased efficiency and reduced workload.
  • Scalability for Campus Demands
    Cloud based technology in higher education enables scalability, meeting dynamic campus needs with ease. During peak times, such as tuition payment deadlines, SaaS systems can handle increased traffic seamlessly, ensuring that payments are processed without delays or system overload. Whether adjusting to fluctuating enrollment or expanding services, SaaS offers flexibility that meets the needs of a dynamic campus environment. For students, this can mean faster financial aid processing, instant access to financial records, and a smoother digital experience.
  • Enhanced Data Security
    Higher ed cloud solutions often exceed on-premise systems in terms of encryption, security patches, and regulatory compliance, including critical standards like FERPA and PCI DSS. Trusted providers typically maintain dedicated security teams and deploy robust tools to safeguard sensitive student and financial data. By leveraging SaaS, colleges can enhance their data security in education, addressing cloud security in higher ed with advanced encryption, regulatory compliance, and proactive threat monitoring to protect sensitive information.

Key Areas for Cloud Migration: ERP and Payments

Two areas stand out as priorities for higher education cloud migration: Enterprise Resource Planning (ERP) and payment systems.

ERP systems manage key functions, from finance and human resources to student information and facilities management. On-premise ERP systems can be inflexible and prone to data silos. Cloud ERPs integrate smoothly with other campus services, creating a cohesive experience across departments. This integration is especially advantageous for payment systems, facilitating more efficient, secure transactions.

Institutions handle a substantial volume of financial transactions, from tuition payments and fees to donations and eCommerce. Legacy payment systems can introduce friction for students and parents, such as confusing interfaces, limited payment options, and delayed or inaccurate processing due to data silos. Transitioning payment systems to the cloud eliminates these obstacles by centralizing data (and eliminating data siloes), enhancing payment processing accuracy, bolstering security, and offering a seamless, user-friendly experience with diverse payment methods.

Steps for a Successful Cloud Migration

  1. Research and Infrastructure Assessment: Conduct a thorough audit of existing systems to identify cloud-ready areas for higher ed cloud solutions. This initial assessment is crucial for creating a comprehensive migration strategy. In fact, Gartner estimates that by 2025, 95% of new IT investments will focus on cloud platforms, underscoring the urgency for higher education to act.
  2. Choosing Trusted Integration Partners: Select partners with a deep understanding of higher education’s unique security and regulatory needs. Providers like Transact, with over 39 years of specialized expertise and partnerships with more than 1,800 educational institutions worldwide, offer highly configurable SaaS in education for  campus technology. Our extensive experience in the higher education space ensures smooth ERP integration, helping institutions streamline campus payments, enhance campus ID solutions, and optimize campus commerce.
  3. Setting Goals and Timelines: Establish clear goals and timelines for the migration. A phased approach, starting with less critical systems, minimizes disruption and allows for adjustments as the migration progresses.
  4. Form a Cross-Functional Team: Establish a task force with representatives from IT, finance, academic affairs, and other key departments. This team can drive institution-wide buy-in and address potential concerns across the organization. This team also plays a critical role in change management, ensuring buy-in from impacted departments and reducing resistance.
  5. Learn from Peers: Many colleges have successfully transitioned to the cloud. Peer insights can offer valuable lessons and best practices for smoother college cloud migration.

The Role of Change Management in Cloud Migration

Migrating to the cloud isn’t just a technical challenge—it’s a people challenge. Adrianna Kezar, in How Colleges Change: Understanding, Leading, and Enacting Change—a guide exploring how higher education institutions navigate transformation—identifies eight cultural, demographic, economic, and historical drivers that compel higher education to evolve. While higher ed cloud solutions are a significant enabler, the success of any cloud migration depends on addressing human factors.

Change management lays the groundwork for a smoother transition by engaging stakeholders early, reducing resistance, and fostering a culture of collaboration. Institutions often underestimate the effort required to prepare faculty, staff, and administrators for change. By applying change management principles, schools can align their teams, anticipate challenges, and set realistic expectations.

For example, college cloud migration requires careful planning to minimize disruption. This might involve forming a governance group, scheduling migrations during low-impact periods, and offering comprehensive training tailored to different user groups. Without this groundwork, institutions risk resistance, stress, and missed opportunities for adoption.

Addressing Challenges

  • Resistance to Change
    Cultural shifts are often the most significant hurdle in SaaS adoption. Faculty, staff, and administrators may resist new systems due to familiarity with legacy processes. Overcoming this challenge requires leadership commitment and comprehensive training programs to build comfort with SaaS in education systems.
  • Customization Limitations
    Legacy systems are often customized to meet specific campus needs, but this flexibility comes at a high maintenance cost. Transitioning to cloud computing. helps avoid the burden of outdated, rigid processes, offering best-practice configurations that adapt to evolving needs. Higher ed cloud solutions reduce the need for custom patches and ensures continuous upgrades.
  • Data Migration
    Migrating data from on-premises systems to the cloud can be complex, especially if data is spread across platforms. Partnering with experienced SaaS providers with robust migration support can help mitigate risks and streamline this process, ensuring compliance with data security in higher education standards.
  • Integration Concerns
    Many colleges operate with a patchwork of software solutions. Ensuring that new SaaS platforms integrate seamlessly with existing tools is essential. Choosing solutions with strong APIs and integration capabilities minimizes this challenge. As Polk State College experienced, working with a trusted provider like Transact can simplify critical integrations, reducing potential friction in the transition.

Practical Solutions for a Seamless Transition

For institutions seeking a smoother path to the cloud, leveraging specialized higher ed cloud solutions like Transact’s IDX® can make a significant difference. Platforms designed specifically for higher education, such as IDX®, help modernize transaction processing and payment systems by moving them from on-site servers to a flexible, cloud infrastructure. This shift simplifies scaling for fluctuating campus demands, enhances processing speed, and minimizes downtime during peak periods. For colleges embracing cloud migration, IDX® offers a dependable, resilient foundation designed to meet the unique demands of higher education and safeguard critical data.  

The Future is in the Cloud

Higher ed cloud migration represents more than a technological upgrade—it is a cultural transformation requiring support across all levels of an institution. While the process may seem daunting, the long-term benefits far outweigh the initial challenges. Embracing cloud computing in universities empowers institutions to meet the demands of tomorrow’s educational landscape while enhancing service to students and faculty.

Colleges moving to the cloud today lead tomorrow’s digital-first education landscape. The future of higher education technology is undeniably cloud-based, and schools that act now will find themselves ahead of the curve, better equipped to meet the evolving demands of students and staff alike.